Understanding Money Apps

By Eric Bangerter, Vice President of Digital Technology

There’s no denying that technology has streamlined certain processes in our lives. While you know UW Credit Union offers you safe and secure digital banking options, you may be wondering about the security of connecting with third-party financial apps.

We’ll get into the details of third-party apps and why you might use them, and how to keep yourself safe if you find one that’s right for you.

What is a third-party app?

Third-party financial apps provide a service in addition to what your primary service offers.

Some examples include:

• additional budgeting tools
• ways to pay your utilities or rent
• paying back a friend

Commonly used third-party financial apps include Venmo, YNAB and Robinhood.

Why would I use a third-party app?

Members find a third-party financial app to be a very useful way to bring together all their accounts at different banks, credit unions, etc. so they can see all their financials in one place. Whether for financial management, goal setting, budgeting or transactions, having everything integrated can make life easier.

Another very common scenario for using a third-party app is when tenants are looking for a simple way to pay their rent online.

Are third-party apps safe to use?

Using a third-party app is more secure now than it ever has been before because the user (you) has control over what information is shared. UW Credit Union has been at the forefront of ensuring third-party information exchanges are handled securely and safely.

What happens when you want to connect with a third-party financial app?

• You tell the third party the financial institution you want to connect.
• The third party connects to UW Credit Union for authentication.
• You sign into your UW Credit Union account on our site—just like you do when accessing Web Branch or our mobile app (and, thus, never sharing your password with the third party).
• During the authentication process, the third party discloses the data to be shared and you are asked if you will allow the sharing of data.
• You can say yes or no, and even get more specific about what accounts and services the third party can look up.
• Web Branch can tell you every service you’ve authenticated to have access to your accounts, and you are able to log in and remove access at any time.

In the example of a tenant wanting to pay rent through a third-party financial app, you often have to verify your credit union account during the setup process before you’re able to pay rent. Usually, it’s a simple verification that an account exists to make the rent payments with. Sometimes this looks like giving the third-party institution access to account history.

You have control over what information you share. However, you may have to find another way to pay rent if you’re not comfortable sharing the information the third-party app requires. You also have the option to remove access after your account has been verified and a rent payment has gone through.

How do I manage third-party access and online banking securely?

Here are some best practices for sharing information with a third party:

• Understand what the third party is trying to do with your account.
• Grant access and get your account established.
• Go into Web Branch and remove account access for the third-party organization if you don’t plan on maintaining an ongoing account with the third party.

And since we’re talking technology and finances, here are some overall best practices* to keep your account(s) safe:

• Never share your password with a third party
• Password managers, like iCloud Keychain or 1Password, are a good idea
• Create unique passwords for every different account (password managers come in handy here)
• Always perform updates to your phone, web browser, computer, etc. as available
• Stop and think through your actions before you respond to any messages regarding your account(s)
• Never hand over your phone to a stranger; if someone in need requests to use your device, make the call on their behalf
• Understand what (if any) fraud protections exist before connecting financial accounts to payment apps

This is a good opportunity to remind you that UW Credit Union representatives will never ask you to share a VerifyU code or create a sense of urgency by sending you a message that your account has been breached and you need to click a link, share a code, etc. immediately to protect your account(s).

If something doesn’t feel right, trust your intuition and contact us. We’re here to help.

*This article is provided for informational purposes only. The content is intended to offer general information on the subject matter and should not be considered professional advice, legal counsel, or financial guidance. While UW Credit Union strives to offer accurate and current information, we cannot guarantee the completeness, reliability, or timeliness of the content. Readers are advised to seek professional advice or consultation where appropriate.