Facebook Is Now Asking Banks For Data on Your Spending Habits

by Frankie Norman August 8, 2018, 1:08
Facebook Is Now Asking Banks For Data on Your Spending Habits

Facebook has asked major banks to share financial information about their customers, such as card transactions and account balances, as it considers launching new financial products. That app now boasts 1.3 billion users and serves as the company's commerce center.

Nevertheless, the Journal reported, privacy concerns led one large USA bank, which the paper did not name, to end the negotiations.

Facebook said some users opted in to accessing some financial information in its Messenger app.

Citigroup acknowledged holding talks with Facebook but declined to comment on its willingness to share information about bank card transactions, checking account balances, and geolocation of purchases made by their customers.

Wells Fargo said in a statement that "maintaining the privacy of customer data is of paramount importance" to the bank. "Like many online companies, we routinely talk to financial institutions about how we can improve people's commerce experiences, like enabling better customer service", said Diana.

Facebook's pushback comes as it's still reeling from the Cambridge Analytica privacy scandal. You might rightly question why the behemoth that is Facebook should grow to encompass any more personal information about anyone, let alone information as sensitive as bank accounts.

By helping friends and family do more than chat online, Facebook hopes to increase the amount of time that users spend with its Messenger app. Banks would get access to Facebook user information, in exchange for sharing their financial data. A critical part of these partnerships is keeping people's information safe and secure.

"Do we really want to give Facebook greater insight into our finances and purchases, too?", Gebhart said.

Shares of Facebook surged almost 3% following the report. The company has started to feel more urgency to make money from its properties beyond the Facebook social network since saying last month that sales growth will slow and expenses will climb in the next few years - a forecast that sent the stock tumbling 19 per cent in one day.

JPMorgan is not "sharing our customers' off-platform transaction data with these platforms, and have had to say no to some things as a result", a spokeswoman told the Journal.

A spokeswoman for Citigroup said the company recognizes its customers are increasingly spending more time on social media and it wants to be where consumers are.

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