Financial institutions generate a lot of data, particularly due to the increasing popularity of digital payment. The data they collect can be used to make better predictions and more accurate calculations. This data contains personal information. Because of this, laws and regulations, such as the GDPR in Europe or the California Consumer Privacy Act (US) restrict the sharing of personal data by financial institutions.
Sharing financial information is essential for a wide range of reasons including better fraud prevention and quicker application processes. Additionally, you can access additional products and services like credit and loans by sharing your financial data. If you choose to give access to your financial information it is crucial that you do it with an established partner. Reputable financial service and business providers will be able explain clearly the reasons for sharing your data, as well as with whom they will give it to.
The crucial element to unlocking the potential of financial data aggregation is creating an open and unified data ecosystem that enables different users to carry out distinctly different functions without taking unnecessary risks. The ability to secure access and process data in real-time is critical and requires an understanding of each user’s role. In order to achieve this, it is necessary to implement data access controls that guarantee a balance between security as well as utility, focusing on allowing real-time financial data to be transferred between departments as well as between companies while ensuring the rights of customers.