Pretty much every app on the market collects some data about its users, and personal finance apps are no exception. That’s why there are so many services to help you maintain your digital privacy and protect sensitive information.
But when it comes to your money, it’s even more important to make sure your data is safe and that only the information you choose to disclose is being shared with the companies you work with to help manage your money.
For instance, while you probably need to share bank account information to track your spending, it’s critical that data is safe — and you may or may not want your personal transaction habits logged.
Merchant Machine recently conducted a study of some of the most popular money apps on the market and how much data they collect on their users. Here’s what you need to know.
[Read: Best Budget Apps.]
Personal Finance Apps and Data Collected
Most of us are guilty of clicking “accept” on terms and conditions without reading them thoroughly, but buried in these agreements is typically the permission for apps to collect information about users.
This can include the financial information you input into the money app, but it could also encompass browsing history, location and other sensitive information. That data then could be used either to help that particular personal finance app better customize your experience or potentially be sold to third-parties for marketing purposes.
Merchant Machine took a look at some of the most popular apps on the market, noting the type of data the app tracked as well as how many data points they have permissions to collect. According to their findings, these apps collect the most user info:
1. Robinhood: 25 data points.
2. Klarna: 24 data points.
3. PayPal: 23 data points.
4. PayPal Pay in 4: 23 data points.
5. Chime: 23 data points.
6. Sezzle: 23 data points.
7. Fidelity Investments: 21 data points.
8. Ibotta: 21 data points.
9. GoodRx: 21 data points.
10. Groupon : 21 data points.
Other popular services on the top list include Mint (20 data points), which will be shutting down Jan. 1, 2024, and Cash App (18 data points).
[READ: Mint Is Shutting Down: Here Are the 5 Best Free Budgeting Apps to Use Instead]
Merchant Machine compared data collected from apps in several different categories, including budgeting, buy now pay later (BNPL), cash back, money transfer, investing and online banking apps.
And while many of the most popular services collect many data points on their users, there were alternatives in each category that collected much less information:
— Budgeting app: FreshBooks Accounting (2 data points).
— Buy Now Pay Later: Tabby (3 data points).
— Cash back: RetailMeNot (2 data points).
— Money transfer: Paysend Money (4 data points).
— Investing: TDAmeritrade (5 data points).
— Online banking: GO2bank (2 data points).
[SEE: 10 Best Money-Saving Apps]
How to Keep Your Personal Information Safe
Just because an app collects your data does not mean it is negative, however. According to Andrea Woroch, a money saving expert, it’s often used to target you with offers for coupons or cash back that are more personalized.
“Some apps collect your personal shopping habits, which really is no risk to you with the opportunity to earn rewards in the form of discounts or cash back,” Woroch said in an email.
That said, it’s critical that you read the terms and conditions of your financial services apps carefully to ensure you are only sharing the information you want.
Additionally, the more companies that have your data, the more risk your information is stolen or leaked in a data breach.
Woroch recommends you check your accounts regularly to keep an eye out for any unusual behavior, so you can spot and report fraud as soon as it happens.
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Money Apps That Collect the Most Data on Their Users originally appeared on usnews.com
