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Why is Facebook Asking Banks for Your Financial Data?

Let’s face it Facebook. The last few years haven’t exactly instilled the world with confidence when it comes to your customers’ data security. Not to mention the data of non-Facebook users they may have connected with online.

But what are a few privacy setbacks in the bigger scheme of things? Facebook, for one, is hoping that’s all water under the bridge.

Facebook has begun discussions with banks and financial institutions, believing that the company can help firms with the task of improving their customer service.

Facebook may be wording it that way, but there is always a hidden agenda with these kind of business deals.

Facebook’s plan to partner with banks

The company has not been quiet with their push to gain access to users’ banking data and other sensitive financial information.

The site has joined a growing race of big technology companies seeking private information once regarded as off-limits. This can include users’ checking-account balances, recent credit card transactions and other details of their personal finances and everyday lives.

The Wall Street Journal reported that Facebook had proposed data-sharing partnerships with banks and credit card companies that would allow users to access their personal account information from within the social network’s messaging service, Facebook Messenger.

With all that has come to light in the past few months, it’s truly a scary time that we’re living in.

Facebook have made it clear that the data would not be shared with marketers or used for ad-targeting purposes, and no major US financial institutions have announced that they’re interested in a joint arrangement.

But that sounds like something we’ve been told before.

The company has been dogged by past scandals over data privacy, which has left privacy experts questioning how more than 1 billion Facebook Messenger users might react to the company wanting to link their social media profiles with their private finances and spending history.

My guess right now? Not good.

Does Facebook have a right to ask for your financial data?

Facebook’s pitch to the financial world comes just months after the company was found to have allowed firm Cambridge Analytica to improperly access the data of 87 million people.

People have lost faith in a company they trusted for so long.

That trust can’t be regained overnight. It will be a slow and long grind.

The episode turned Facebook into a poster child for tech privacy abuses, sparking public outrage, congressional hearings and mounting concerns over how much the site knew and shared about its global audience.

If we can’t trust them with our data, why should we ever trust them with our private financial information.

A Facebook spokesperson stated:

A critical part of these partnerships is keeping people’s information safe and secure.

A great track record on that.

Facebook should first gain their users’ trust back before jumping into the financial world.

The market is heavily regulated and financial information is a lot more important to people than their usernames and passwords.

Representatives from major banks have been in talks with Facebook about possible deals, however even they are treading lightly due to concerns of data security and privacy.

Facebook need to prove themselves all over again, and this time it won’t be as easy.

By The Australian Tribune Editorial Team

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The Australian Tribune Admin

The Australian Tribune Admin

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