Complex onboardings drive users away. You could potentially lose as many as three out of every four new users if your platform’s onboarding isn’t straightforward. Every additional step in that process is a new opportunity for them to drop off completely, which can make removing demanding—or potentially intrusive—steps like user permission and credential sharing tempting.

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But user permission sharing isn’t just essential for reducing fraud and keeping data secure, it’s also an important source of data for your business.

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What is user permission sharing?

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User permission sharing describes situations where an application asks a user to give it permission to access data from a secondary source. For example, almost everyone has given smartphone apps permission to access data, use the phone’s camera, and more. But if you’ve ever applied for a loan or another financial service online, you may have given a company access to your credit report or similar information. This can be done rather seamlessly, with a user only needing to click a few buttons to give the necessary permissions. Some data sources make this a little more difficult.

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Similar to user permission sharing is credential sharing. But instead of only asking for opt-in permission to access data from a source where it’s not as easily accessible, apps with user credential sharing will ask users to enter their credentials for a third-party platform, often mandating an independent third-party provider to aggregate this data on behalf of users.

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So why ask at all? Essential user data that could be accessed otherwise is often locked within secondary platforms. If a platform doesn't allow data sharing experiences, that user will have to manually fetch that data themselves. This can lead to inaccurate or incomplete information—if they don't stop using your platform entirely.

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4 user permission sharing pain points

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Apps usually only ask for permissions they absolutely need to work properly, but just asking for them can still lead to some serious pain points. Some might only affect how your users adopt your platforms while others have more dire consequences.

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User resistance

Like any step in your onboarding process, asking users to share permissions for another platform risks causing them to drop off your tool entirely. This is especially the case with anything security-related, like asking for credentials. Most users will pause when asked to share this sensitive information, and not all of them will continue. There are multiple reasons why a user might not continue, from not having the authority to share these permissions, not having them at all, or being concerned about your app’s security.

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Extra work

In some situations, you can pull the data you need automatically and just need permission from a user to do so. However, some data sources require that a user go through several extra steps just to give you the access you need, which involves additional work before that user has received any value from your platform. Because they aren’t engaged with your platform yet, there’s a chance they’ll lose interest if they see this as just a bit too much work for what you promised.

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Lack of data standardization

The data sources you get access to don’t have to format their data in a way that’s convenient for you. That means different platforms in the same category—like open banking apps—might share data in completely different ways. Even with the necessary user permissions, you’ll need to take extra steps to transform that data into something you can use effectively.

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Security and data privacy risks

Asking for user permissions is delicate. Where do you draw the line between “enough permissions to get necessary data” and “enough permissions to create a potential security risk?” This can be especially tricky if you’re working with a small team. You might have the engineers you need to build seamless integrations between secondary data sources and your platform, but do you have security experts on staff? You’ll also have to deal with the contrast between actual security risks and perceived security risks. Asking for permissions can seem inherently risky to users, sometimes more so than the real risk.

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Does user permission sharing affect conversion rates?

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Adding any step to your onboarding process can negatively impact your conversion rates. After all, the ideal user onboarding flow would take a potential user at their highest point of interest and get them to your platform immediately so they can get value ASAP.

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But that’s not always possible. Even when you try to pare back your onboarding process to just the essentials, you might need to ask for permissions or credentials, no matter what it does to your conversion rates.

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When dealing with sensitive data, you need total trust from prospects if they’re going to convert to users. By building user permission sharing right into your platform, you help build that trust—especially if you put this step at the very end of your onboarding process.

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User permission or credential sharing can be an essential part of fraud prevention, which is worth any potential drop in conversion rates. Additionally, you can emphasize this as an advantage, which security-minded users will appreciate.

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So, in short, user permission sharing affects conversion rates. But think about it as disqualifying users who aren’t a good fit for your product while reinforcing value for those who are.

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Priming users for data sharing

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While user permission sharing might cause your conversion rates to take a hit, there are things you can do to mitigate this—or even turn it into a positive experience.

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• Focus on the benefits: If you can reinforce the fact that this step will save them time in the long run (e.g. accessing income data automatically instead of through manually downloaded statements) or that it will contribute to the value they’re getting from your platform (e.g. getting a loan approval faster) you’re more likely to see users go through the whole process.
• Build trust before you ask: Dropping a permission screen in front of a user without the right priming is more likely to make them drop off. To prepare the user for your ask, you can share any security certifications you’ve received and specific fraud measures you’ve taken. Reinforce your commitment to keeping data safe.
• Mention the requirement early: In the same way you want to prime users to make them more willing to share permissions, you want to tell them this is necessary as early in your onboarding process as you can. That way, users who absolutely won’t do it can disqualify themselves early while those who are more on the fence will be easier to convince.
• Make it an option: Are there ways your platform can work without the data you’re asking for? If so, making user permission sharing a way of getting a benefit rather than a requirement for accessing your platform means you’re more likely to get the data you want.

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Managing dropouts (and their implications)

If you’re still worried about users dropping off at the permission-sharing stage of your onboarding, just know that this isn’t always a bad thing. There are three main reasons why.

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It’s where fraudsters leave

How many potential users are you willing to lose if it means you drive away most fraudsters? While implementing user permission sharing might have a negative impact on your conversions, it definitely helps prevent fraud. Depending on the data you’re working with, having these measures in place to trip up potential fraudsters is essential.

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You still get some data

Even if a user completely checks out of your platform when you ask them to share permissions or credentials, your onboarding process will still have gathered some of their data, allowing for eventual remarketing efforts. Just because a potential user drops off doesn’t mean they’re gone forever. You can eventually re-engage them and either turn them into a full user or at the very least find out if there’s something about your permission-sharing system that doesn’t appeal to them. That way, you can make the process better for future users.

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Make credential sharing the best method

A user might initially balk at having to share credentials to use your platform. But if you present this as the best (i.e. the fastest and most secure) way to move forward, they’re likely to change their mind. This won’t eliminate all drop-offs, but should significantly improve your ability to motivate undecided users to reach the finish line.

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If you want to recover even more potential users, you can offer alternatives that don’t require data connectivity. These will usually involve manual, time-consuming work on the user’s part, making credential sharing look preferable.

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Not every user is a good fit

If you offer financial services and a potential user doesn’t want to share any of their financial information, you know they won’t get much out of your services. If your product is still early in its lifecycle and too many people are dropping off at this point, then you know there are changes to be made.

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Time to share

User permission and credential sharing can streamline the way your product works, and it’s often absolutely essential to get it working right. But it can also be a tough ask, potentially leading users to drop off entirely. As long as you ask for the right amount of data at the right time, you shouldn’t see too much of an impact on your conversion rates. And if you’re still worried, just remember to prime your users correctly and that not every user lost was a good fit for your tool anyway.

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Want to build permission sharing right into your platform? Check out how you can use Deck to connect to alternative data sources directly.

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