Connected Accounts Risk

Does using connected accounts give Monzo the opportunity to use your accounts elsewhere as part of their lending criteria, spending habits etc.

The Terms and Conditions and Privacy Notice when you connect accounts covers this – I can’t go through the texts now but I don’t think so

Monzo can get the same info (and a lot more) about your accounts via credit searches if they need to

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Fair point :upside_down_face:

Not sure… when you add another account you share your DDs, transactions…, regular payments

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I would’ve thought the opposite is true, that bringing external accounts into Monzo gives it access to more data about spending habits.

The more a bank knows about you financially, the more profitable you are to it.

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But surely Monzo don’t do that! It was the only argument people came up with why Plus connected accounts are better than Yolt & co

Can you explain what you mean about the “only argument” bit?

I can’t work out if you’re being sarcastic.

Do you mean people believe Monzo isn’t using the data it imports in some way?

People said connected accounts in Monzo Plus aren’t worth paying for because you get the same, and more, from services like Yolt. The counter argument I’ve always seen was that yes, but they steal personal data which if Monzo do too, then the option is pretty worthless indeed

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The Monzo team definitely made a big point about how other Apps mean “your data is the product” - although no one came back to me when I asked Monzo to clarify that they don’t / won’t use or sell your data in the same way.

So… That’s a thing.

I don’t think that is a “risk” though, as even if they do use your data - it will be in an aggregated/anonymised sense.

I think because this is based on an Open Banking API - it’s basically a data feed and Monzo can’t actually see the sensitive data that your [other] bank hold

No one “steals” data. Monzo uses it, and explains this in its Privacy Policy. It uses the data to sell you services, and to make lending decisions.

[We] check your credit history and ask about your reasons for applying for an arranged overdraft or loan, and other details about your financial circumstances so that we can make responsible lending decisions.

[We] tell you about products and services through the app or other channels, like social media companies, based on how you use our products and services and other information we hold about you. We do this so we can make sure our marketing is useful. That includes instructing platforms to show or not show Monzo adverts to existing customers. We don’t share any identifying information with social media companies other than your mobile advertising ID. You can disable or reset your mobile advertising ID in your device’s operating system.

If you stick your data into something like Emma, it will sell it on because that’s the whole point of its existence and it doesn’t produce anything itself. If you stick your data into Monzo, it will use it within Monzo, because it sells financial products and services.

Why is it OK to want to put your data into Monzo but not let Monzo use it to become profitable so it can continue providing the service you want?

If people object to the use of data gained from Open Banking, they do not have to sign up for it.

This is a good point, I never understood why people say X organization “steals” your data. You literally give it to them by signing their T&C and agree to letting them use it.

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This is incorrect.

Emma has made a big point of differentiating from e.g. Money Dashboard.

MD explicitly use your data, Emma do not

Not all aggregators are equal

Are you ever going to sell my data?

No, we have no intention to do so and this would be against our own values. Our goal is to help people and provide a quick and easy way to manage your finances. In other words, we are not in the business of selling data and never will be

Never selling your data does not = never using it to sell you something

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Absolutely, and Emma will use your data for other purposes, if you consent specifically. The point is that they don’t lump all the data together in “anonymised” format and sell it on to the highest bidder.

Now I’m as confused as you are

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The difference is small, but very important.

One will use your data from the moment you start using the service, the other will only use your data when you specifically and separately consent to your data being used for a specific purpose. The approaches are worlds apart in reality

I’ve lost track of my own topic :sweat_smile:

Edit: Who on earth is Emma?

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Gummy bears

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Emma is a financial aggregator, like Yolt, Money Dashboard etc.

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I’m with you, im going to stick with monzo.

I’m just curious and the reason I made this post was simply because when i connected my Amex and Barclaycard all of a sudden “We can’t offer you an overdraft” appeared. Before I connected anything there was a £1,000 offer.

It made me very curious, I’ve unlinked all my other accounts to see if I get offered an overdraft next week when the weekly refresh happens