Follow Up Friday: Pros and Cons of Data Sharing

Third party data sharing is becoming more prevalent in financial services as fintech providers increasingly provide more personal financial management solutions. In Europe the Revised Payment Services Directive (PSD2) is also revolutionizing data sharing for the fintech market.

American Banker provides insight on the pros and cons of data sharing also including insight from Wells Fargo and JPMorgan, who have developed leading data sharing partnerships and solutions. While the majority of the challenges to data sharing are refuted by technology experts there are a number of considerations that have limited the data sharing process.

Some of banks’ leading concerns for data sharing include connectivity risks, system overloads and differing regulatory standards. Data can be affected when transferred to a third party, it can be difficult to determine data being extracted and system updates can affect data flow. Banks have also reported system overloads from data extractions at peak hours. Additionally, banks report that differing regulatory controls and standards can cause security risks when working with third party data aggregators.  Source

Sign up for our Newsletters

Every morning the Fintech Nexus News team scours the globe for the most important fintech stories of the day in the daily Global newsletter.

The Europe edition comes out on Monday, Wednesday, and Friday featuring the most important stories in European and UK fintech.

The Latin American newsletter arrives in your inbox on Tuesdays and Fridays. This is a trilingual newsletter featuring stories in Spanish, Portuguese, and English.

Join 20,000 subscribers!

[class^="wpforms-"]
[class^="wpforms-"]