Financial institutions produce large quantities of data, particularly with the increasing adoption of digital payment. This data can be used to develop more efficient prediction models and make more accurate calculations. This data includes personal information. Therefore, laws and regulations like the GDPR in Europe or the California Consumer Privacy Act (US) limit the sharing of data about customers by financial institutions.
Sharing financial information is important for a variety of reasons, including better fraud prediction and speedier processing of applications. Additionally, you can access additional services and products, such as credit and loans by sharing your financial data. If you decide to grant access to your financial information it is vital that you do so with an established partner. Reputable businesses, apps and financial service is scanguard legit or a scam 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.
The key to unlocking the full potential of financial data aggregation is to build an open and unifying data ecosystem that enables different users to execute different tasks without putting themselves at risk. It is important to be in a position to access and process data with security in real-time and also understand the role of every user. Achieving this goal requires effective security controls for data access that provide an appropriate balance between security and utility, with an emphasis on allowing live financial data to move between departments and between companies while protecting the rights of customers.