Financial institutions generate large amounts of data, especially with the growing use of digital payment. These data can be used to build more capable prediction models and create more precise calculations. This data contains personal information. For this reason, laws and regulations such as the GDPR in Europe or the California Consumer Privacy Act (US) limit the sharing of data about customers by financial institutions.
Sharing financial data can be beneficial for a variety of reasons, including improved fraud detection and faster application processes. You can also access more products and services like credit cards and loans, by sharing your financial data. If you decide to give access to your financial information it is essential that you do so with an established partner. Reputable financial service and business providers can explain the reason for sharing your information and with whom they will give it to.
The most important factor in unlocking the full potential of financial data aggregation is to build an open and unified data ecosystem that permits different users to carry out distinctly different functions without taking unnecessary risks. Securely accessing and process data in real-time is vital, as is a clear understanding of each user’s role. To achieve this goal effective control of access to data is essential to maintain an appropriate balance of security and utility. The focus should be on allowing live financial information best virtual data room providers to be moved between businesses or departments while ensuring the rights of customers.