Question: I was in a neighboring state recently and at a large gathering a banker friend told the whole group that a famous basketball coach (whom she named) had just opened an account at her bank. Isn't this a privacy problem?
Answer: It most certainly is. The fact that an individual is a customer of a particular financial institution (whether as a depositor, borrower, or even safe deposit renter) is a confidential matter that should not be disclosed outside the bank, except as permitted by law. Be sure you cover this during your staff training on GLB privacy issues. Imagine how often conversations like this have occurred:
George: "We just got new neighbors. Darcy and Marnie Garble moved in next door. Do you know them?"
Sue: "Yes, as a matter of fact, I do. They've been customers of our bank for many years. I helped them with their first car loan and a few other times I've helped them with loans when they've gotten in a financial bind. Of course, he's really done well financially the past few years, so they don't need short-term loans anymore. I think you'll really like having them in your neighborhood."
Though this type of idle talk may appear harmless, it breaches your duty of confidentiality to your customers and begins to erode the valuable bond of trust you have with them.
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