The CEO of a San Antonio based on-line data company says he has serious questions about Facebook's attempt to get into the banking and finance industries, News Radio 1200 WOAI reports.
The Wall Street Journal reports the giant social media company has offered to pay big banks for access to the financial data it has stored in millions of customers.
"Step one is, they are trying to get more users to make Facebook their hub not just for their social life for their financial life," said Ajay Gupta, who heads San Antonio based Stirista, which provides secure data management services for several corporate clients.
Gupta says with new users flat lining and Facebook under increasing pressure from Wall Street following its disasters data mining agreement with Cambridge Analytica, the company is trying to branch out into new areas.
"They're hoping, for example, that people will come to Facebook to check their bank accounts."
Gupta, who's company specializes in secure data management, says there are several things about Facebook's attempt to branch out that customers should be wary of.
He says the fewer hands secure and sensitive data passes through the better, and he says Facebook has a poor track record of responsibly handling members personal information.
"The next thing you know, they might be looking at your purchase history, and before you know it, you might be looking at targeted ads based on the items you have purchased, even though Facebook says the data will not be used for ad targeting," Gupta said.
The Journal reports that Facebook as reached out to several of the nation's largest banks, including J.P. Morgan Chase, Wells Fargo, and Citigroup to discuss acquiring financial data. Facebook says the data would be available to customers on Facebook Messenger, its social messaging site, and not on the Facebook platform.