Why Your Financial Data Should Not Live in the Cloud

Every time you connect a finance app to your bank account, your data travels through multiple systems you do not control. Here is why that matters and what you can do about it.

The 2025 Breach Reality

Financial services are prime targets for cyberattacks. According to industry analysis, 48% of cyberattacks now target the financial sector. A single vendor breach in 2025 exposed data for over 400,000 bank customers across multiple institutions when attackers exploited an unpatched vulnerability.

The problem is not just direct bank breaches. Third-party vendors who serve hundreds of financial institutions create concentrated risk. One compromised vendor can expose customers across dozens of banks simultaneously.

How Your Data Travels

When you use a cloud-based finance app, your data typically flows through multiple layers:

1. Your bank shares transaction data via API or screen scraping
2. A data aggregator (companies like Plaid, Yodlee, or Finicity) collects and normalizes your data
3. The finance app receives your data and stores it on their servers.
4. Cloud infrastructure providers host the data for storage (AWS, Google Cloud, etc.)

Each layer represents a potential opportunity for a data breach and privacy risk. A breach at any level can expose various parts of your financial picture, whether that be your name, social security number, account numbers, balances, spending patterns, income, and more. At best, your data is encrypted and possibly secured. At worst, your entire personal finance information is compromised. This has the potential to be quite troublesome, and a very real reality in 2026.

The Business Model Problem

Many finance apps are free. This raises a clear and obvious question, how do they make money?

Some companies monetize by selling anonymized data insights to financial institutions, referral fees when you apply for recommended credit cards or loans, premium features that cost extra, and advertising based on your financial behavior. Free apps are not necessarily free, you are the product.

Some paid apps have a commitment to not sell your data while others hide this in the fine print. Even paid apps face pressure, though. If a finance company gets acquired, the new owner's privacy policy applies and it is very possible that as business models change, your data that was protected under one policy may become monetizable under new ownership.

What Local Storage and Offline-Only App Offers

Software that runs entirely on your device changes the equation

No third-party data sharing. Your financial data never leaves your computer. There is no aggregator, no cloud server, no acquisition risk.

No service disruption. When a cloud finance app shuts down, you lose access. With local software, your data remains yours regardless of what happens to the company.

Complete control. You decide when and how to back up your data. You choose what gets exported and what stays private. No terms of service changes affect your access.

Offline access. Review your finances on a plane, in areas without internet, or simply without depending on external servers being available. You control your data all the time.

The Trade-offs

Local software is not perfect:

• No automatic bank syncing means manual transaction entry or imports.
• Backup responsibility falls on you
• Multi-device sync requires your own solution
• Initial setup may take longer

For many people, these trade-offs are worth the privacy and control. Others prefer convenience despite the risks. There is no universally right answer, but at least you have the ability to make your own informed decision.

SavePoint prioritizes offline-first. There will always be an offline-only application for the privacy conscious. On our roadmap, SavePoint addresses these tradeoffs by creating a companion online-capable program that will allow for more traditional online backups (offline already exist) and direct downloads of financial data. You will always be in control and always have a choice. Users will be able to switch between offline and online software interchangeably.