Farm Credit: Using a Privacy Statement to Boost Borrower Confidence | Nexsen Pruet, SARL
A privacy statement shouldn’t be seen as a burden but as an opportunity to show potential borrowers that the organization’s promises are important. The promise to keep personally identifiable information in the strictest confidence. The promise to create and activate a system and people who manage data appropriately and who remain vigilant against external threats.
When it comes to selecting a credit agency, the needs of the borrower are increasing. They are looking for transparency and a partner they can turn to and with whom they can do business reliably. A privacy statement goes a long way in putting the cards for organizations on the table.
In an oversimplification, a privacy statement explains what an organization does with personal data. In agricultural credit, this may involve how the organization collects information, the requirements of 12 CFR Part 618, Subpart G, how information is stored and which third parties / vendors may have access to the data, as well as contacts that borrowers can contact. regarding their information.
However, a privacy statement doesn’t have to be a lengthy legal document filled with legal jargon. A simple recitation of compliance measures can be written, while also including beneficial statements, such as length of service in the community, established commitment, and other trusted commitments.
In closing, agricultural credit organizations must remain vigilant in terms of compliance to protect themselves, but also their borrowers. Using a privacy statement as a marketing tool is a convenient and responsible way to show potential borrowers that the organization cares about the business, that the hard work of the team, and the choices made by management, are in the best interests of the borrower.