Banks are slowing down Service to Personal Finance Websites: Why?

Over the past few years, personal finance websites and apps have provided users with the opportunity to monitor their finances. These websites allow individuals to keep track of their personal finances, such as credit cards and bank transactions. Mint and BillGuard are among the most popular for handling personal finances and keeping an eye on fraudulent transactions. Each of these websites has over a million daily users who must input financial data from banking institutions. Large name banks are prepared to begin slowing down information that is available on these third party websites because data is extremely sensitive and valuable for marketing financial products.

 

Banks to slow down on information given to personal finance websites

Some of the best known banks in the country have decide to slow down service to personal finance websites. JP Morgan Chase and Bank of America are just two banks to temporarily cut or slow down data to Mint.com. Another big name bank, Capital One, is still allowing customers to use personal finance data on Mint, but have stated the company will not be liable for any resulting damages or losses. This is in the case that somehow Mint is hacked or a data breach occurs, exposing the personal information of a Capital One customer.

 

Other reasons for the slowing

Both Chase and Bank of America have stated that Mint users have to ping their own websites for recent transactions, deposits, and other data. This causes the banks’ computer system to strain and run slow. Another reason banks have given, for slowing information, is that they are worried third-party websites, like Mint, will expose customer login and financial information to cyber hackers. Just recently, federal authorities issued charges against individuals from an outside provider, who stole consumer finance data from JPMorgan Chase. It is really an issue of cybersecurity and how to keep customers protected.

 

Why third party websites have gained popularity

A big reason these third party websites have flourished in recent years could be due to the fact that big banks have failed to deliver comprehensive personal finance tools to their customers. If banks provided better personal financial assistance tools, third party websites might not exist. There have been talks of implementing similar tools through a bank’s own website. Most, if not all big business banks, offer free online access for users to review their account. If these banks could come up with a similar system like Mint offers, consumers would most likely utilize the personal finance management system through their own bank, rather than wasting time with a third party. This would ensure that a customer’s data would not be breached, and banks would have ease of mind that there is no risk to their customers.

What users love most about websites like Mint, is that they offer a one stop shop, with a whole picture of all financial information. Users can add multiple accounts, cards, and bills while giving them the option to track spending patterns and investments. Maybe we will see a change in the future when it comes to banks providing personal finance tools that are easily accessible to customers.

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