The fear factor: Why people avoid linking bank and brokerage accounts (and how to stay safe when they do)

In an era where digital finance is more integrated than ever, financial aggregation services have gained popularity. These services allow users to link their bank, brokerage, and other financial accounts in one place, offering a holistic view of their assets, liabilities, and transactions. However, despite the convenience, many people remain hesitant to link their financial accounts due to concerns about security, privacy, and fraud.

This article explores the reasons behind this fear and what both financial service providers and users can do to improve security and trust.

Why people are afraid to link their financial accounts

1. Fear of data breaches and cyberattacks

With high-profile data breaches affecting major corporations, people are understandably worried about their sensitive financial data being exposed. Hackers constantly target financial institutions, and the idea of consolidating accounts into one platform feels like putting all their eggs in one basket.

2. Unauthorized access and fraud

Many fear that linking accounts could increase the risk of unauthorized access. If a hacker gains access to an aggregation service, they may be able to siphon money or make unauthorized transactions without the user’s immediate knowledge.

3. Lack of trust in third-party providers

Even though many financial aggregation services use encryption and security measures, they often require users to share their banking credentials. This makes some users uncomfortable, as they may not trust a third party with direct access to their sensitive data.

4. Concerns about data privacy and selling of information

Some aggregation platforms generate revenue by monetizing customer data through analytics or targeted financial products. This leads to concerns that personal financial information may be sold or used in ways that users do not fully understand or control.

5. Regulatory and liability uncertainty

Many users worry about what happens if something goes wrong. If an aggregation service is compromised, will the bank or brokerage compensate for stolen funds? The legal and liability landscape can be unclear, making people hesitant to take the risk.

How financial aggregation providers can enhance security and trust

1. Implement bank-level security

Aggregation services should adopt the same security measures as banks, including:

• End-to-end encryption to protect data in transit and at rest.

• Multi-factor authentication (MFA) to ensure only authorized users can access their accounts.

• Biometric authentication (such as fingerprint or facial recognition) for added security.

2. Use secure API integrations instead of credential sharing

Many banks and financial institutions now offer API-based (application programming interface) integrations, which allow aggregation services to access data securely without requiring users to share their banking credentials. This is far safer than older "screen scraping" methods, where a third party stores and uses a customer’s login credentials.

3. Adopt transparent data privacy policies

Financial aggregation providers should:

• Clearly disclose how they use, store, and protect user data.

• Offer users control over what data is shared and allow them to revoke access easily.

• Refrain from selling or sharing data with third parties without explicit consent.

4. Partner with banks and brokerages for direct support

Aggregation platforms can build trust by working closely with financial institutions to ensure smooth, secure integrations. Partnerships with banks and brokerages can also help users feel reassured that their data is protected by industry standards.

How applications can help users feel comfortable linking their accounts

1. Educate users on security measures and data handling

Users often fear what they don’t understand. Many people hesitate to link accounts because they’re unsure how the process works and whether their data is truly secure. To ease concerns, applications should:

• Offer clear, simple explanations on how financial account linking works.

• Break down security features such as encryption, API-based connections, and fraud monitoring.

• Explain what data is accessed and what isn’t (e.g., clarifying that the app cannot move money without explicit permission).

• Provide short, visual tutorials or explainer videos to make the process approachable.

A well-informed user is more likely to trust the platform.

2. Provide a secure and transparent linking process

Transparency is key to building trust. Users should never feel like they are handing over their credentials blindly. Apps can improve comfort by:

• Using bank-direct API connections instead of screen scraping (which requires sharing login credentials).

• Providing a step-by-step walkthrough that clearly shows what is happening during the linking process.

• Displaying real-time confirmation screens that verify the correct accounts are linked.

• Letting users review and confirm permissions before linking an account.

The more control users feel they have, the more secure they will feel.

3. Offer read-only access as an initial option

A major fear is that linking accounts gives the app the ability to move money or make transactions. A great way to ease this concern is by offering a "read-only" mode, where:

• Users can view balances and transaction histories without allowing any changes.

• The app does not have permission to initiate transactions.

• Users can upgrade to full access later if they feel comfortable.

This gives users time to build trust in the service before allowing more permissions.

4. Highlight partnerships with trusted financial institutions

Trust is easier to establish when reputable institutions are involved. Apps should:

• Showcase partnerships with banks and brokerages that have vetted and approved the app’s security.

• Display trust seals or certifications from well-known security organizations.

• Use recognizable bank logos and branding to reassure users they are connecting through an official channel.

If a major bank or brokerage trusts the platform, users are more likely to feel safe linking their accounts.

5. Make it easy to unlink accounts anytime

Users will feel more comfortable if they know they’re not making a permanent commitment. Apps should:

• Offer an easy, one-click unlinking option in account settings.

• Clearly communicate that users can revoke access at any time.

• Automatically remove all stored data when an account is unlinked (or give users the option to retain insights).

When users feel in control, they are more likely to take the initial step of linking their accounts.

6. Provide reassurance through security certifications and audits

To reinforce trust, financial applications should undergo third-party security audits and prominently display their compliance with industry standards. This can include:

• SOC 2 Compliance – Verifies that the app follows strict data security protocols.

• ISO 27001 Certification – Indicates a strong information security management system.

• PCI DSS Compliance – Ensures safe handling of financial data.

• Regular independent security audits to verify best practices.

Displaying compliance badges on the app and website helps reassure users that their data is protected.

7. Give users granular control over data sharing

Many users hesitate to link accounts because they don’t want to share all their financial information. Applications can ease this concern by allowing users to:

• Choose which accounts to link (e.g., link a checking account but not savings).

• Select specific data to share (e.g., transaction history but not investment details).

• Set expiration dates so linked accounts automatically disconnect after a certain period.

The more customizable the experience, the safer users will feel.

8. Offer fraud protection and guarantees

Many users worry about financial loss if something goes wrong. Apps can build confidence by:

• Providing fraud protection guarantees, such as refunding users if unauthorized transactions occur.

• Clearly outlining liability policies so users know their financial institution will protect them.

• Sending alerts for suspicious activity detected within linked accounts.

Knowing there’s a safety net can encourage hesitant users to link their accounts.

9. Use trust signals and social proof

People trust services that others already use successfully. To increase comfort, apps should:

• Show user reviews and testimonials from people who have successfully linked their accounts.

• Display the number of accounts securely linked (e.g., "Over 5 million accounts safely connected").

• Highlight positive media coverage from trusted financial news sources.

Seeing that others trust the service can encourage users to do the same.

10. Implement multi-layer authentication for added security

Users should feel that even if one layer of security fails, their accounts remain protected. Financial apps should:

• Require multi-factor authentication (MFA) when linking accounts.

• Use biometric authentication (e.g., fingerprint or facial recognition) for account access.

• Implement device-based authentication to prevent unauthorized logins from new devices.

The more security layers in place, the safer users will feel about linking accounts.

11. Provide real-time customer support

If users experience issues or uncertainty during the linking process, they should be able to reach out for immediate help. Apps can improve confidence by offering:

• Live chat with support agents during the linking process.

• A dedicated help center with FAQs and troubleshooting guides.

• Phone support for urgent concerns.

Knowing that help is readily available can encourage users to proceed with linking their accounts.

12. Communicate that linked accounts are read-only for analytics (if applicable)

If the app only uses linked data for tracking spending, investment analysis, or budgeting, make this very clear upfront. Users need to know:

• The app cannot transfer money.

• The app does not have the ability to change account settings.

• The linked account is only used for insights and reporting.

Summary

If users know the app is only reading data and not controlling it, they will feel much safer.

For financial applications to succeed in convincing users to link their accounts, they must remove uncertainty, offer transparency, and provide strong security assurances. By implementing clear education, customizable controls, secure connections, and trust-building measures, apps can turn hesitant users into confident adopters of financial aggregation.

The key is to empower users with knowledge and control—because when users feel safe, they’re far more likely to trust and use financial linking services.

How users can protect themselves when linking financial accounts

1. Choose reputable financial aggregation services

Not all aggregation services are created equal. Look for providers that:

• Use secure API connections rather than screen scraping.

• Have strong security measures such as encryption and MFA.

• Are well-reviewed and trusted by banks and financial professionals.

2. Enable multi-factor authentication (MFA) everywhere

If your financial aggregation service or bank offers MFA, enable it. This adds an extra layer of security by requiring a second form of verification (such as a code sent to your phone) when logging in.

3. Regularly monitor your accounts for suspicious activity

Even with high security, it’s always good practice to:

• Check account transactions frequently.

• Set up alerts for large transactions or login attempts from new devices.

• Immediately report any unauthorized activity to your bank and financial aggregator.

4. Use strong, unique passwords

Avoid using the same password for multiple financial accounts. Instead:

• Use a password manager to generate and store strong, unique passwords.

• Change your passwords periodically, especially if a financial institution or aggregation service experiences a data breach.

Final thoughts

By using trusted services like Truthifi, enabling security measures, and staying informed about best practices, individuals can enjoy the benefits of financial aggregation without undue risk. With robust security, privacy controls, and user-friendly features, Truthifi empowers users to confidently manage their finances while keeping their data safe and secure.