We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is Bank Privacy?

Mary McMahon
By
Updated: May 17, 2024
Views: 5,713
Share

Bank privacy is a family of policies which are designed to protect the privacy of bank customers. Many nations have laws which set out minimum standards for bank privacy, in the interests of protecting their citizens. Individual banks tend to have their own privacy policies. When customers join a bank, they will be given information about the bank's approach to privacy, and they will also be sent updates whenever the bank changes its privacy practices.

Financial records are sensitive. Customers of a bank have a reasonable expectation of privacy including the expectation that personal identifying information, information about accounts, and information about safe deposit boxes will not be released. Banks, for example, will not share the government identification numbers of their customers, and will not release records about financial activity without a subpoena.

Bank privacy also extends to things like addresses, phone numbers, email addresses, and other contact information. When reading a bank's privacy policy, it is a good idea to find out how much information the bank shares with partners. Bank customers are sometimes disturbed to find out, for example, that banks will sell information about buying trends to companies which send solicitations. Usually the privacy policy includes an opt-out which allows customers to limit the release of their information to that which might be required by law.

Privacy also limits the circumstances in which information can be released. Over the phone, for example, someone is usually required to give an identifying code to get information about account balances. This is designed to protect the privacy of bank customers by setting up a layer of security between the bank and the public. Online banking also uses a variety of privacy techniques including encryption to protect its data and prevent things like unauthorized transfers. Bank privacy is an especially pressing concern in the Internet era because of the speed at which fraud can take place.

Some nations are famous for their bank privacy, and have become havens for “offshore banking,” in which citizens of other nations attempt to hide assets. These banks may offer complete privacy such as numbered accounts which conceal identity, and will not release banking information to other governments. However, several privacy havens have come under attack for their practices, leading to shifts in their approach to privacy which allow nations like the United States to go after rogue taxpayers who attempt to shield their assets offshore.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a WiseGeek researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Editors' Picks

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
Share
https://www.wisegeek.net/what-is-bank-privacy.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.