Facebook wants more bank data to rebuild trust with users

Facebook wants more bank data to rebuild trust with users

Facebook has asked large US banks to share detailed financial data about their customers in an effort to deepen user engagement on its Messenger platform, according to the Wall Street Journal.

Facebook last week saw $120 billion wiped off its market value after reporting a tailing off in new users in the wake of the Cambridge Analytica scandal. While the social media giant has been responding to user concerns with a series of pledges to improve privacy, it is also looking at ways to deepen its relationships with customers.

The Wall Street Journal says that JPMorgan Chase, Wells Fargo, US Bank and Citigroup among others have been approached by Facebook to discuss potential offerings it could host on its messaging platform. Facebook is reportedly in the market for card transaction data and current account information. Features on offer to customers would include the ability to check their account balances and receive fraud alerts.

Banks are keen to use Big Tech messaging services as a means to communicate with customers - and indeed many already offer in-app integration with chatbots such as Messenger - but have baulked at building any closer relations with Facebook, states the report. At least one large US bank has walked away from talks in light of the ongoing investigations into Facebook's data sharing practices, says the WSJ.

A JPMorgan spokeswoman told the broadsheet that the bank isn’t “sharing our customers’ off-platform transaction data with these platforms, and have had to say no to some things as a result."

Comments: (7)

Melvin Haskins
Melvin Haskins - Haston International Limited - 06 August, 2018, 18:44Be the first to give this comment the thumbs up 0 likes

Any sharing of data with Facebook should be the a choice of the individual, not their bank. If the banks give this data away without the permission of their customers, then they should be prepared for potential class action suits.

A Finextra member
A Finextra member 06 August, 2018, 20:46Be the first to give this comment the thumbs up 0 likes

Having lost the public's trust because of its lacksidaysical approach to security of users' personal information, this should be an absolutely frightening initiative for any consumer.   

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 07 August, 2018, 08:39Be the first to give this comment the thumbs up 0 likes

I admire Facebook's chutzpah. What's more, it just might work. I can see how millions of customers would readily click the DO IT button following a teaser like "Prevent credit card fraud without leaving your favorite app".

A Finextra member
A Finextra member 07 August, 2018, 13:081 like 1 like

Ketharaman -- sad, but true!!!

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 08 August, 2018, 13:31Be the first to give this comment the thumbs up 0 likes

FWIW, here's a contrarian take by TechCrunch: https://techcrunch.com/2018/08/06/facebook-banking/

A Finextra member
A Finextra member 08 August, 2018, 17:181 like 1 like

Aren't there enough ways to check one's balances etc... by way of bank apps and other financial agg services, how is this going to help by using say facebook.

With the recent data sharing issues, this looks like a mixed bag...

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 08 August, 2018, 19:16Be the first to give this comment the thumbs up 0 likes

There are many ways to check account balances. But all of them require people to leave their most favorite app! Ergo Facebook Messenger Account Inquiry. 

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