Farm Credit: Utilizing a Privacy Statement to Build Borrower Trust
A privacy statement should not be viewed as a burden but as an opportunity to show prospective borrowers that the organization’s promises matter. The promise to hold personal identifiable information in strict confidence. The promise to build and enable a system and staff that manages data appropriately, and that remains vigilant to outside threats.
When it comes to selecting a credit organization, the borrower’s needs are growing. They seek transparency and a partner in which they can turn to and reliably do business with. A privacy statement goes a long way in placing the organizations cards on the table.
In an oversimplification, a privacy statement spells out what an organization does with personal data. In farm credit, this may involve how the organization collects information, the requirements under 12 C.F.R Part 618, Subpart G, how information is stored, and what third parties/vendors may have access to the data, along with contacts that borrowers can reach out to regarding their information.
However, a privacy statement does not have to be a lengthy legal document filled with legalese. A straightforward recitation of compliance measures can be drafted, while also including beneficial statements, such as length of service within the community, the established commitment, and other trust-building commitments.
In closing, farm credit organizations must remain vigilant in compliance to protect themselves, but also their borrowers. Utilizing a privacy statement as a marketing tool, is a convenient and responsible way to show prospective borrowers that the organization cares, that the hard work of the team, as well as the choices made by management, are in the best interest of the borrower.
Should your organization need assistance in drafting a borrower-focused privacy statement please reach out to our offices at firstname.lastname@example.org. We would be happy to serve you and to help with all your compliance needs.
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