While about one-third of Americans use online and mobile applications to help manage their money, a majority are concerned about data privacy when banking online, according to a new survey by The Clearing House (TCH).
Specifically, roughly two-thirds of banking app users said they are very or extremely concerned about data privacy when using apps. Further, about half are uncomfortable sharing payment and financial information on the apps, and about 25 percent said they would not use an app that stores their bank account credentials. It also found that around 40 percent think fintech apps sell their data to third parties or use it to generate user insights.
“As consumers are increasingly using fintech apps, we need to make sure their financial information is being accessed safely,” said Dave Fortney, executive vice president of product development and management at The Clearing House. “Banks and fintechs need to work together to develop more secure methods for consumer-controlled data sharing.”
The study revealed that 56 percent would like to control which of their financial accounts and data can be accessed by a third party.
One way to better protect consumer data through fintech apps is through a form of data sharing known as application programming interfaces (APIs).
“We’re committed to identifying better processes, such as APIs, to facilitate safe, consumer-controlled data sharing,” Fortney said. “The Clearing House is currently collaborating with banks, regulators, fintech app providers, and technology companies on the topics of secure financial data sharing, controls, and data privacy,”
TCH will continue its efforts to promote the safety, security, and transparency of consumer data sharing.