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December 30, 1999
First Union Announces Internet Requirements for Aggregator Companies in an Effort to Address Customer Security and Privacy Concerns
CHARLOTTE - First Union announced today that it has formulated access, security and privacy requirements for Internet companies aggregating financial information for First Union customers. The move is the first-of-its-kind in the financial industry to address privacy and confidentiality concerns around this new business model.
In today's changing online banking industry, a growing number of companies have created automated tools which allow these companies, at the customer's request, to access their online banking accounts at financial institutions to obtain account information for various purposes. However, the technology and business models commonly used today pose potential risks to bank customers' confidential information. First Union regards safeguarding its customers' privacy to be an important obligation and First Union customers expect First Union to ensure the security of their confidential information. Through its newly announced requirements, First Union intends to address and evaluate the aggregators and others' use of confidential customer information, the security of the aggregators' computer systems, and the aggregators' protection of privacy of our customers' information.
First Union's requirements for customer authorized account access by Internet aggregator companies enables it to review aggregator activities on firstunion.com and address such issues as privacy and information sharing, customer authorization to access accounts, confidentiality of data, contractual agreements, technical and security audits, and indemnification against losses. The requirements are meant to protect customers from unauthorized access or activities on their accounts as well as to ensure First Union can continue to comply with existing and future laws and regulations.
"Protecting First Union's customer information and accounts is vital to our customers," said David Carroll, executive vice president and chief e-commerce officer. "First Union is an industry leader in ensuring system security through online banking. We believe the protection of customer information and accounts is of the highest importance and cannot be compromised. We also believe as a company that we need to take steps to ensure that technology does not run ahead of public interest and personal privacy."
"First Union is proud to lead the financial industry with these requirements," added Carroll. "We're eager to work with aggregator companies that are willing to adhere to our requirements. First Union will implement these requirements immediately so that customers can continue to receive these services in the most secure manner."
About First Union
First Union is a leading provider of financial services to more than 16 million customers throughout the East Coast and the nation. At September 30, 1999, First Union had assets of $235 billion. The company operates full-service banking offices in Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and Washington, D.C., as well as brokerage offices in 41 states nationwide.
Firstunion.com provides individuals and businesses with comprehensive information on financial products, services and planning tools to meet a broad spectrum of needs. The web site also contains company information for customers, shareholders and site visitors. First Union offers a wide range of customer-focused online banking services that cater to more than one million online banking and online brokerage customers. firstunion.com is a key, integrated delivery channel that complements First Union's ATM, First Union Direct, and extensive financial center and brokerage network, allowing customers to bank when, where and how they choose.
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