According to reports by the Wall Street Journal (WSJ) The social-media giant Facebook has asked large U.S. banks to share detailed financial information about their customers, including card transactions and checking-account balances, as part of an effort to offer new services to users.
As part of the proposed deals, Facebook has asked banks for information about where its users are shopping with their debit and credit cards outside of purchases they make using Facebook Messenger, the people said.
Over the past year facebook asked JPMorgan Chase JPM & Co., Wells Fargo & Co., Citigroup Inc. and U.S. Bancorp USB to discuss potential offerings it could host for bank customers on Facebook Messenger, Messenger has some 1.3 billion monthly active users. The talks are taking place as Facebook faces several investigations over its ties to political analytics firm Cambridge Analytica, which accessed data on as many 87 million Facebook users without their consent.
Facebook said it wouldn’t use the bank data for ad-targeting purposes or share it with third parties.
“We don’t use purchase data from banks or credit card companies for ads,” said spokeswoman Elisabeth Diana. “We also don’t have special relationships, partnerships, or contracts with banks or credit-card companies to use their customers’ purchase data for ads.”
Facebook shares climbed sharply on the news, up 3.5% around midday, marking the biggest gain since last month’s historic drop. Alphabet Inc.’s Google and Amazon.com Inc. also have asked banks to share data if they join with them, in order to provide basic banking services on applications such as Google Assistant and Alexa, according to people familiar with the conversations.