Facebook's Plan to Partner With Banks Raises Privacy Concerns

Facebook's Plan to Partner With Banks Raises Privacy Concerns

Facebook's Plan to Partner With Banks Raises Privacy Concerns

Among the "features" Facebook is reportedly looking to create if it successfully obtains financial data is a tool that would "show its users their checking-account balances", the Journal reported. Reports now claim the platform wants to gain access to its users" financial information to "boost engagement.' .

Facebook wants banks to share your financial data to expand Messenger, says report.

"Like many online companies with commerce businesses, we partner with banks and credit card companies to offer services like customer chat or account management", Facebook said.

Facebook has been trying for a long time to make its Messenger app a hub for commercial activity. "Protecting our customers' privacy and personal information is our highest priority".

"Account linking enables people to receive real-time updates in Facebook Messenger where people can keep track of their transaction data like account balances, receipts, and shipping updates", Facebook said Monday in a statement.

Though its stock bumped on news it was seeking big banking partnerships, Facebook pushed back on the Journal's report with what Slate reported was inconsequential counterpoints meant to reassure users about what the objective of the initiative is.

"We don't use purchase data from banks or credit card companies for ads", Facebook spokeswoman Elisabeth Diana said in a statement. As the Journal wrote, one source said that the data "could be used to offer services that might entice users to spend more time on Messenger". Google and Amazon have reportedly also sought similar arrangements, exchanging user data for the banks' integration with the tech companies' massive platforms.

"We're not shoring up financial data", she added. Facebook's payments product was given lower than average marks on data privacy, which measures data control, collection, retention and deletion. Facebook likely hopes to capitalize on the pressure that big banks are experiencing to develop partnerships with large online platforms to reach more customers digitally.

Facebook's pitch to the financial world comes months after it was found to have allowed the political consulting firm Cambridge Analytica to improperly access the data of 87 million people. A JPMorgan Chase spokeswoman said the company isn't "sharing our customers' off-platform transaction data with these platforms, and have had to say no to some things as a result".

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