Know the risks of using financial apps

(NC) Financial applications, also called fintech apps or fintechs, can help you manage your finances online. But it’s important to know the risks, especially when they use a method known as screen scraping to access your financial data.

What are fintech apps?

Fintechs offer personalized services such as financial product comparison tools and budget tools. They also often let you view all your financial accounts and assets in one place. Banks may offer their own fintechs, but third-party providers also create, manage, and offer fintech apps.

Typically, third-party apps use screen scraping technology, which requires you to provide your online banking usernames and passwords to access your financial data.

Why is screen scraping risky?

Once you share your login credentials, you no longer have control over what happens with your data. These apps will have access to your account balances, as well as your transaction, product and services information.

This increases your risk of being exposed to data breaches—and once you share your banking information, your bank may hold you liable for any losses if fraudsters use your debit or credit card.

How can you stay safer?

There are alternatives to these apps available. For example, the Financial Consumer Agency of Canada has a variety of free online tools to help you manage your money that don't use screen scraping. These include a budget planner, a bank account comparison tool, a mortgage calculator and a financial goal calculator.

Before trying out a fintech app, find out how the provider will access your financial information. If you're unsure, ask your bank. And if you still have doubts, don’t share your information. You can learn more about keeping your financial data safe online at canada.ca/money.