Financial institutions generate a huge amount of data, particularly because of the increasing popularity of digital payments. These data can be used to make better predictions and more accurate calculations. However, this data often contains personally identifiable information. This is the reason why laws and regulations like the GDPR in Europe and the California Consumer Privacy Act in the United States limit how and the extent to which financial institutions can share customer information.
Sharing financial information is important for a variety of reasons, including better fraud prediction and speedier processing of applications. You can also access more services and products like credit cards and loans by sharing your financial data. It is important to select a trusted partner in the event that you decide to share your financial information. Trustworthy companies, apps and financial service providers must be able to clearly explain the purposes of sharing your data, as well as the specific partners they will cooperate with in sharing your data.
To unlock the full potential of financial information aggregation it is necessary to establish an open and unified ecosystem of data that allows users to perform distinctly different processes without taking unnecessary risks. It is important to be able to access and process data with security in real-time and understand the role of each user. To accomplish this goal, effective data access control is required to ensure the right balance between security and utility. The priority should be on allowing live financial data to be transferred between different departments or companies while ensuring rights of the customer.