Facebook is an online social media and social networking service company which shares photographs, links to news, or other interesting content on the web, play games, chat live, and stream live video. The purpose is to make the world open and connected. Facebook connects with friends and family who also discovers the happenings of the world and share and express what matters to them.
Recently Facebook is asking one of the customers to reveal their data to include bank accounts. The courtship indicates banks and insurers which eventually teams up with the tech giants. Due to this, just by having been into is a speed in data with the tech giants which moves the clients and agrees on who owns their data and uses them with whom they share now or never.
There are customers data which sits on tons of financial institutions and which makes Facebook who wants to work with them. Banks also do not only have verified the address and date of birth but also knows how to make money which one needs to spend as such. Having said this, a tech-savvy bank predicts how we need to use money in the future and loans to apply for.
Despite having been invested heavily in data infrastructure with digital offerings, financial institutions find themselves hamstrung by layers of outdated systems. On the other hand, Facebook leverages the latest technology to define user experience with the partnership potential for both sides.
However, with the catch being with the financial industry, there has been a trust between a client and his provider with primary importance. One thing is that a customer’s banking data is not easily sold just by surfing his or her internet behaviour.
One more main principle with the customer control is that with data and not companies which collects and the companies clears their uses of customer data and attains consent for sharing third parties like social media platforms.
As there is a rise in mobile-based internet services, online banking has become hassle-free. With consumers having been taken with the advantage of these services and started using new payment methods.
These principles are effective with a clear distinction between customer-owned data and company-generated insights.
- A customer provides data to banks in order to identify himself or herself with a date of birth and address, belongs to him or her. However, the same idea holds transaction data as credit data purchases or payments on a car loan.
- Inferred data like big data predicts about future customer behaviour on a customer’s characteristics and transaction history and belong to banks and not customers.
It is noted that with a due concern, Facebook has the security principles with a clear liability framework which ensures the responsible party to be held accountable where breaches occur. Such a framework is more important with third-party providers like social media platforms using the data.