Facebook asks big banks to share customer details

Facebook asks big banks to share customer details

Facebook asks big banks to share customer details

New features could include tools that help users check their account balances or alert them about bank fraud, according to the Wall Street Journal.

Facebooksaid this week that it 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, as an alternative to speaking with customer-service representatives or automated chatbots on the companies' banking or credit sites. Facebook has pitched the idea to JPMorgan Chase, Wells Fargo, Citigroup, and US Bancorp, per the report.

Facebook said 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.

The statement follows a story in the Wall Street Journal that said the social media giant had asked U.S. banks for such data. "We also don't have special relationships, partnerships, or contracts with banks or credit card companies to use their customers' purchase data for ads".

The talks are part of an effort to make Facebook Messenger more of a destination for online shopping. The sticking point for banks, unsurprisingly, is data privacy.

According to The Wall Street Journal (WSJ), the latest data partnership Facebook is pursuing could involve some of the US' biggest banking organizations.

Facebook maintains that if it gets the data from banks, it will use it to offer services that encourage people to spend more time on Messenger, and will not use it to target ads or share with third parties. American Express customers can use Messenger to track purchases. One bank has reportedly pulled out of discussions with Facebook because of the issue.

But Facebook is denying the "data sharing" aspect of the report, per an article from TechCrunch.

But Facebook is saying it won't collect any of your bank's financial or transactional information about you, and that opting into the service will only enable better integration with Facebook Messenger.

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.

Wells Fargo said in a statement that "maintaining the privacy of customer data is of paramount importance" to the bank.

Related news