DEFINITION of Financial Privacy
A term used to encompass a wide variety of privacy issues. It relates to not only the use of information within financial institutions but also externally. Full financial privacy prohibits the selling of consumers information to companies who wish to use it for telemarketing, marketing or soliciting customers without their consent.
BREAKING DOWN Financial Privacy
It also prohibits the sharing of client information to affiliates of the institution as well. For example: A customer holds a checking account at a bank. The bank has an investment division as well as an insurance division. The bank may give information to the client about the other needs served by their external divisions, but not vice versa.