Fintech apps, such as banking or budgeting apps, now seem to be the “new normal.” While they can be convenient, they also pose some risks. That’s why it’s important to have the information you need to understand how they work and how to protect yourself.
What are fintech apps? How do they work?
Financial technology apps, known as fintech apps, can help you manage your finances digitally. They offer personalized products and services such as product comparison tools and budgeting tools. They may also allow you to view all your financial accounts in one place.
Fintech apps are created, managed and offered by banks or third-party providers. Typically, third-party apps offer additional financial products or services. These additional services include buying or selling cryptocurrencies, investing in the stock market and keeping track of your budget.
Why be cautious?
To use a fintech app, you usually must provide information about yourself or your finances. This may include your debit or credit card numbers, username, PIN and personal information. This should give you pause. Sharing your banking or credit card information with an app, even one that claims to be “secure,” may break your bank account agreement. In other words, your bank may hold you responsible if there is an unauthorized transaction on your account.
Before you use a fintech app, especially from a third party, make sure you understand whether your bank will hold you liable to cover the cost of a potential unauthorized transaction. You’ll also want to read the app’s privacy and security policies.
It’s your responsibility to look for any purchases, withdrawals or transfers that you didn’t make. Contact your bank if you notice anything suspicious on your bank account or credit card statement. Also notify Canada’s two credit reporting agencies, TransUnion and Equifax, to place a fraud alert on your account.
