Facebook asks US banks to share detailed information about users

Facebook has been directed to JPMorgan Chase, Wells Fargo, Citigroup and the USA. UU Bancorp to share customer financial data, such as card transactions and current account balances

Facebook is weighing partnerships with US banks UU To offer services in Messenger.

The social networking giant has turned to JPMorgan Chase, Wells Fargo, Citigroup and the United States Bancorp last year to share financial data from clients, the Wall Street Journal reported, citing sources close to the situation.

According to reports, the data would include things like user card transactions and checking account balances.

However, Facebook has since denied that it is interested in obtaining financial data from consumers. Instead, it hopes to improve its payment and commerce functions within Messenger.

Since the publication of the report, Facebook had already been criticized by the aforementioned banking associations, in large part due to its poor record of protection of user data.

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Facebook has been directed to JPMorgan Chase, Wells Fargo, Citigroup and the USA. UU Bancorp to share customer financial data, such as card transactions and current account balances

Facebook has been directed to JPMorgan Chase, Wells Fargo, Citigroup and the USA. UU Bancorp to share customer financial data, such as card transactions and current account balances

"A recent Wall Street Journal story incorrectly implies that we are actively asking financial services companies for financial transaction data – this is not true," Facebook spokeswoman Elisabeth Diana told TechCrunch.

"Like many online businesses with commercial businesses, we partner with banks and credit card companies to offer services such as customer chat or account management.

& # 39; Account linking allows people to receive real-time updates on Facebook Messenger, where people can track their transaction data, such as account balances, receipts and shipping updates.

"We are not using this information beyond allowing this type of experience, not for advertising or anything else," he added.

Diana pointed out that keeping people's information safe and secure & # 39; It is a key part of these associations and that users can opt for the service.

Facebook seems to be recognizing that it is working with banks on the bot chat capabilities, not necessarily on the capacity suggested by the Journal report.

From its massive privacy row earlier this year, Facebook has been trying to prove that it can safeguard users' data, despite its well-known practices of sharing its information with third parties and advertisers.

A major US bank UU He abandoned the talks due to privacy issues, the Journal said.

Facebook continues to grapple with the consequences of the Cambridge Analytica scandal.

In March, it was revealed that 87 million user data were collected without their knowledge and shared with the research firm affiliated with Trump, Cambridge Analytica.

Currently, the firm is being investigated by several government agencies about its handling of user data.

When obtaining information from banks, Facebook could establish features that allow users to verify the balances of their accounts in Messenger, as well as receive fraud alerts about their account within the application.

Many banks are concerned about ensuring user privacy, despite wanting to reach customers on more digital platforms.

They also face growing competition from peer-to-peer platforms such as Venmo, PayPal and Zelle.

JPMorgan spokeswoman Trish Wexler told the Journal that she is not "sharing transaction data outside our clients' platform with these platforms, and as a result, I have had to say no to some things."

Facebook maintains that it would not use customer data for ad targeting or make it available to third parties.

He argues that such partnerships would help boost the additional commitment and time spent on the Messenger application.

"We do not use the purchase data of banks or credit card companies for ads," Diana told the Journal.

"We also do not have special relationships, associations or contracts with banks or credit card companies to use the purchase data of their customers for the ads."

Instead, it would offer customer service features for popular banks through the Messenger application.

Facebook has been trying to increase the amount of services offered through Messenger beyond messaging. Last year, it reached an agreement with PayPal to allow users to send money in the application

Facebook has been trying to increase the amount of services offered through Messenger beyond messaging. Last year, it reached an agreement with PayPal to allow users to send money in the application

Facebook has been trying to increase the amount of services offered through Messenger beyond messaging. Last year, it reached an agreement with PayPal to allow users to send money in the application

HOW THE FACEBOOK MESSENGER'S PAYMENT SYSTEM WORKS

To send money, US-based Messenger users can tap a new & # 39; $ & # 39; icon that is next to the buttons that allow you to send photos, stickers or a sign with your thumb up.

Then they must enter the amount of money they wish to send, touch "pay" in the upper right corner of their screens and enter their debit card number.

To receive money for the first time, users must enter their card number.

Once this is done, they can create a PIN code that they must enter the next time they want to send money.

Users who have recent iPhone models may choose to use Touch ID instead to authorize transactions using their fingerprint.

The firm has been trying to increase the amount of services offered through Messenger beyond messaging.

Last year, Facebook reached an agreement with PayPal that allows users to send money through Messenger.

Google and Amazon may also have asked banks to share data to provide banking services in applications such as Google Assistant and Alexa, according to the Journal.

Earlier this year, biometric software company Daon said it had developed a skill that allows users to send money using Alexa.

The function could reach the speakers and voice activated devices of the Internet giant in the next nine to 18 months.

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