Financial data covers a vast variety of information, including balance sheets, accounting software, bank records and debt owed. The information is found in a variety of places, from physical files at the data center of a bank, to spreadsheets on personal computers and in the office.
Access to financial data can bring many advantages, but is not without risk. This is why sharing data should be carefully planned and executed. One method to mitigate the risk is to involve line managers and finance specialists in the process of planning and ensure that they are able to respond to any questions from employees. A second way is by providing the right training and support. A final strategy is to build the data availability into the business model in order to make it a part in the daily operation.
A database of financial data that is easily accessible can offer a wealth of knowledge and competitive advantages. This could cause anxiety for some, particularly those who are able to control and manage their personal financial information.
Fortunately, new opportunities in technology are opening up to help resolve the tension between sharing data and privacy. The existing methods, known as Privacy-Enhancing Technologies, can enable institutions to share and combine financial data in a secure manner, while preserving user anonymity and privacy. This is already beginning be observed as more banks Fintechs, and apps create tools for sharing secure live data. This unifying ecosystem requires effective control of access to data to enable different users to carry out distinct operations.
