Financial institutions generate a huge amount of data, particularly due to the increasing popularity of digital payments. The data can be used to build more capable prediction models and perform more precise calculations. However, the data often contains personally identifiable information. This is why regulations and laws such as 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 data is important for a wide range of reasons including better fraud prevention and faster application processes. It can also allow you to gain access to a wider range of services and products, including loans and credit cards. It is crucial to select an organization you can trust in the event that you decide to share your financial data. Trustworthy companies, apps and financial service providers must be able to clearly explain the purposes of your data sharing, as well as the specific partners they will collaborate with to share your data.

To fully realize the potential of financial information aggregation, it is crucial to create an open and unified ecosystem of data that allows different users to perform distinct operations without putting themselves at risk. It is crucial to be in a position to access and process data in a secure manner and be aware of the roles of every user. To achieve this goal, you must implement effective control of access to data that creates a balance between security as well as utility, with a focus on allowing live financial information to be transferred between departments as well as between companies while protecting the rights of the customer.