WHAT’S BEING CLAIMED:
- Facebook is denying a report that it is actively seeking for private financial data from major US banks.
- The Wall Street Journal reported on Monday that Facebook had talks with JPMorgan Chase, Wells Fargo, Citigroup, and US Bancorp asking for financial transaction data.
- Facebook says that “like many online companies with commerce businesses,” it seeks partnership with financial institutions to offer services.
Facebook says it’s not asking for consumers’ financial data when it had talks with major banks in the US. This is contrary to what the Wall Street Journal has reported on Monday that the company has asked banks “to provide information like account balances and credit card activity.”
The social media giant says the talk was about discussing ways on how the company can offer services via Messenger.
“A recent Wall Street Journal story implies incorrectly that we are actively asking financial services companies for financial transaction data — this is not true,” Elisabeth Diana, a spokesperson for Facebook said in a statement.
“Like many online companies with commerce businesses, we partner with banks and credit card companies to offer services like customer chat or account management,” the statement read.
Facebook users can link their account, such as PayPal, to Messenger. In this way, consumers can easily track their account balances, receipts and shipping updates in real-time. Messenger can also help American Express holders to track their purchases. The company assured that all financial data will not be shared with advertisers.
“The idea is that messaging with a bank can be better than waiting on hold over the phone — and it’s completely opt-in,” Diana added.
A Citigroup spokeswoman said the bank acknowledges that customers are relying more on social media and it wants to be where consumers are, CNN Money reported. She’s just concerned on the issue of privacy.
“While we regularly have conversations about potential partnerships, safeguarding the security and privacy of our customers’ data and providing customer choice are paramount in everything we do,” the spokesperson said.
A spokesperson for JPMorgan said the company is not “sharing our customers’ off-platform transaction data with these platforms, and have had to say no to some things as a result.”
A US Bancorp spokesman told CNNMoney it has not shared any customer information or data to Facebook or any other social media platform as they highly prioritize the privacy and protection of their customers’ personal information and data.
Wells Fargo said in a statement that they are “not actively engaged in data-sharing conversations with Facebook,” adding that they value the privacy of customer data.
Since Facebook was involved in the Cambridge Analytica scandal, many of their customers have become more skeptical about privacy concerns.
Source: CNN Money