Financial institutions generate a lot of data, particularly because of the growing adoption of digital payments. This data can be used to create better prediction models that are able to perform more precise calculations. However, the data often contains personally identifiable information. This is the reason why laws and regulations such as the GDPR in Europe and California Consumer Privacy Act in the United States limit how and with whom financial organizations can share customer data.
Sharing financial information can be beneficial for a variety of reasons, such as better fraud detection as well as faster processing of applications. It also helps you gain access to a variety of products and services, including credit and loans. It is crucial to select a trusted partner should you decide to share your financial information. Reputable businesses, apps and financial service scanguard good or bad providers should be able to clearly explain the reason behind the sharing of your data and the specific partners they will collaborate with to share your data.
The key to unlocking the full potential of financial data aggregation is creating an open and unifying data ecosystem that enables different users to perform different operations with no unnecessary risks. It is crucial to be able to access and process data in a safe and secure manner and also be aware of the roles of every user. To achieve this, effective control of data access is essential to ensure an appropriate balance of security and utility. The main goal should be allowing live financial information to be moved between companies or departments while ensuring that rights of the customer are protected.