Economy

Facebook Asks Banks to Share Customer Information

Facebook Asks Banks to Share Customer Information

The social media giant is facing lawsuits over the debacle in the United States and the UK, is being investigated by various agencies and has inspired a handful of data privacy bills in both the House and the Senate.

Facebook Inc (FB.O) has asked large US banks to share detailed financial information about their customers, as part of an effort to offer new services to users, The Wall Street Journal reported on Monday, citing people familiar with the matter.

The primary concern among many banks and individual customers with regards to Facebook's latest attempts at expansion is data privacy.

The banks' primary concern with this partnership is, unsurprisingly, about data privacy. "It has also pitched fraud alerts", reported the Wall Street Journal, which claimed, "Facebook has told banks that the additional customer information could be used to offer services that might entice users to spend more time on Messenger". Facebook has pulled in $11.8 billion in advertising revenue in the US and Canada so far in 2018. Facebook is now facing multiple investigations related to its ties to Cambridge Analytica, the political analytics company that accessed data on up to 87 million Facebook users without their consent.

More news: Facebook Removes Alex Jones And InfoWars Pages

Wells Fargo decline to address the news.

JPMorgan Chase spokeswoman Patricia Wexler directed AFP to a statement given to the Wall Street Journal saying, "We don't share our customers" off-platform transaction data with these platforms and have had to say "No' to some things as a result".

The talks are part of an effort to make Facebook Messenger more of a destination for online shopping. Unless Facebook is able to reassure the banks that it either won't have direct access to the data itself, or that the data will never be used for advertising purposes, then the company may not succeed in convincing USA banks to share their customers data. This marks the largest gain since the rapid drop in July.