Customers expect their financial institution to use the information they provide for services such as timely credit approval. Today's financial products are often offered throughout a financial institution's family of companies such as banking, insurance, mortgage, securities, and mutual fund firms and processing centers. Customer information must flow smoothly among these affiliates to provide customers with products and services they demand while at the same time keeping the information secure. Irresponsible use by a financial institution of sensitive customer data is foolish. An institution that acts irresponsibly will alienate its customers who will avoid doing business with companies that do not meet their expectations.
Consumers have the information necessary to make informed judgments.
Protecting customer data allows financial institutions to compete effectively. Sharing customer financial information indiscriminately will allow a company's competitors to learn more about those customers and market to them directly. Companies that fail to protect customer financial privacy will quickly lose their customers to competitors. There are enough laws to assure customer protection. Many laws, both federal and state, govern the use of financial information.