The first pitfall is failing to recognize privacy as the key to building and preserving customer trust. In so doing, institutions may attempt to comply at the last minute without a plan. The result will most likely be inaccurate or inadequate privacy policies and practices. Although the privacy rules seem straightforward enough, especially for institutions that do very little information sharing, there are some hidden complexities. In a recent article on privacy, industry expert Jo Ann Barefoot compared privacy issues to the work that went into planning for Y2K, except that with Y2K, we all knew when that project would end.
Privacy looks to have no end in the foreseeable future.
Even in small, uncomplicated institutions, a privacy plan should be developed that addresses the issues involved in this complex project. Another pitfall is failing to recognize that privacy is a key concern of customers. In recognizing privacy as a key customer concern you will want to devise an effective public relations and customer communication and education plan. You must tell customers in many different ways what you are doing about privacy. In so doing, you can leverage privacy and what your institution is doing about privacy to position your institution as a trusted partner for your customers rather than an adversary.