Tech startups like Mint and Betterment have access to huge swaths of spending data pulled from your bank account and credit card records, access users grant these companies. In fact, Mint now has over 20 million users!
And now the big banks are trying to establish new restrictions on companies like these who rely on access to personal financial data. The New York Times reports that in some cases banks are flat out refusing to share certain information.
“When you think about millions of customers handing over their bank account credentials to third parties, who currently have no real oversight or examination of their security controls, you start to understand why our members get pretty nervous,” said Jason Kratovil, the vice president for government affairs for payments at the Financial Services Roundtable, which represents the largest banks.
“It’s pretty clear the real intent of the banks is to limit this data because it puts their business model at risk,” said William Harris, the founder of Personal Capital, a San Francisco-based startup.
But for now, here in the US, there are very few rules governing how tech companies can use customers’ data. And it’s not clear who would be liable, the banks of the tech companies, if a service like Mint or Venmo was compromised and resulted in financial losses for the customers.
Here at Workville NYC, we’re always interested in new regulations and how new technology companies are changing the rules that govern our daily lives. As a NYC coworking space, we value innovation across all industries, including financial institutions.
Do you use these products? Do you know exactly who has access to your financial information and what they’re doing to it? Heck, if our TVs are spying on us, what’s next!?