The Commission will also report its assessment of existing industry guidelines and principles on the online collection and use of consumers' personal information. IBAA's Efforts IBAA is pleased to submit copies of the banking industry's privacy principles and IBAA's own privacy statement for inclusion in the Commission's report. Technological innovations in computers and telecommunications are rapidly transforming bank operations and financial services. Bank customers are increasingly concerned about their personal financial privacy, particularly when they conduct transactions electronically. IBAA believes it is critical for the banking industry to let customers know through the adoption of industry-wide guidelines that their financial privacy will be respected and protected when they conduct business with commercial banks.
Community banks have a tradition of protecting their customers' personal financial information.
One of the key foundations of community bank success is the attention to customer service that often differentiates community banks from larger banks. For this reason, community banks have long recognized that their success in maintaining relationships with their customers is dependent on the bank's commitment to protect customer privacy. Trade associations representing the entire banking industry endorsed a uniform set of customer privacy principles last September. These principles are for the use of the associations' member banks in meeting customer needs to understand and protect the use of personal information. A copy of the press release issued by the bank trade association regarding the privacy principles is attached for your reference.