Facebook asks JP Morgan, Citibank, Chase to share customer details
What's the story
Facebook has asked major US banks to share customer data to allow it to develop new services on the social network's Messenger texting platform. The tech giant has had discussions with Chase, JPMorgan, Citibank, and Wells Fargo several months ago, said a source. The Silicon Valley-based social network has also contacted US Bancorp, according to The Wall Street Journal. Here's more.
Messenger
Facebook wants to facilitate Messenger with banks, transactions, business
Facebook, which has come under intense criticism for sharing user data with many app developers, was interested in information including bank card transactions, checking account balances, and where purchases were made, the source said. The goal was to create new ways for Messenger to be woven into and facilitate, interactions between banks and customers, according to the reports. Facebook has 1.3 billion users.
Information
Facebook however denies the claims
A Facebook spokesperson denied the social network had asked financial institutions for transaction data. JPMorgan Chase spokeswoman, Patricia Wexler, said, "We don't share our customers' off-platform transaction data with these platforms and have had to say 'No' to some things as a result."
Cambridge Analytica
Facebook already facing tough times regarding protection of user data
Facebook acknowledged last month that it was facing multiple inquiries from the US and British regulators about a scandal involving the British consultancy Cambridge Analytica. In Facebook's worst ever public relations disaster, it admitted that up to 87 million users may have had their data hijacked by Cambridge Analytica, which was working for US President Donald Trump's 2016 election campaign.
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Facebook saw shares shrinking by $100 billion
Facebook CEO Mark Zuckerberg said in May he was rolling out privacy controls demanded by European regulators to Facebook users worldwide because "everyone cares about privacy." Shares in Facebook plummeted last week, wiping out some $100 billion, after the firm missed quarterly revenue forecasts.