Facebook asks big banks to share customer details

Facebook asks big banks to share customer details

In exchange for potential features including fraud alerts and checking-account balance checks, Facebook is asking for some of its users' most sensitive financial information, such as their balances and where they use debit and credit cards.

The social giant reportedly wants data as specific as checking account balances and individual transaction information, which would be used as part of a bid to expand their own services by offering banks ways to access users (and give users access to banking) via Facebook Messenger.

Facebook is now discussing partnership ideas with firms like Citigroup Inc., Wells Fargo, and JPMorgan Chase, but the Cambridge Analytica incident has reportedly caused at least "one large US bank" to pull out of the talks.

Facebook said the data would not be shared with marketers or used for ad-targeting purposes, and no major USA financial institutions have announced that they're interested in a joint arrangement. Earlier this year, Facebook executives were forced to apologize after the personal data of as many as 87 million people ended up in the hands of a United Kingdom political consultancy. The sticking point for banks, unsurprisingly, is data privacy.

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 goal of the initiative is. At least one has cited concerns over customers' privacy.

In an effort to better protect user data, the company earlier in March said it ended "Partner Categories", which let advertisers use information from third-party data providers such as Experian and Oracle Data Cloud. Examples of this include Bank of America and American Express, which you can text with over the chat service.

Banks are keen to use Big Tech messaging services as a means to communicate with customers, but have baulked at the breadth of information sought by Facebook, states the report. People who bank with Citi in Singapore, for instance, can keep an eye on their account balance and monitor transactions via Facebook.

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

Facebook is now trying to recover from the Cambridge Analytica scandal, which significantly damaged the company's image after it was revealed that a London-based firmed had gained access to as many as 87 million users to influence US President Donald Trump's 2016 election campaign.

'We don't use purchase data from banks or credit card companies for ads'.

Does Facebook want your financial data?

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