Banks Quietly Introduce Right to Monitor Customers' Social Media

Strategic Insights -

The UK's largest banks, including Natwest and Barclays, have slipped the right to monitor customers' social media into their privacy policies. Despite public denials of such checks, the banks' policies admit that they may gather data from Facebook and Twitter. Nigel Farage, the former Ukip leader, recently discovered that his bank, Coutts, closed his accounts after his views were deemed to "not align with their values", and he has lodged a complaint with the Information Commissioner.

Key Takeaways:

  • The four biggest high street lenders, Natwest, Barclays, Lloyds Banking Group, and HSBC, have introduced the right to monitor customers' social media into their privacy policies.
  • The banks' policies admit that they may gather data from Facebook and Twitter, despite public denials of such checks.
  • Nigel Farage's bank, Coutts, closed his accounts after his views were deemed to "not align with their values", and he has lodged a complaint with the Information Commissioner.
  • UK Finance, the banking industry body, has admitted that lenders could run checks on customers using social media.
  • Banks are using the World-Check Risk Intelligence database, which searches for regulatory red flags on potential customers, to make these checks.
  • Some banks, including Natwest and Barclays, have claimed that they do not regularly monitor customers' social media, but their privacy policies contradict this.
  • Gareth Johnson, the MP for Dartford, has stated that it is disturbing that banks have given themselves the green light to monitor social media.

Statistics:

  • 39% of Natwest is owned by the taxpayer.
  • 13 pages make up Natwest's privacy notice.
  • 28 pages make up HSBC's privacy notice.
  • 4 biggest high street lenders have introduced the right to monitor customers' social media into their privacy policies.
  • 1 former Ukip leader, Nigel Farage, had his accounts closed by his bank after his views were deemed to "not align with their values".

Sources:

  • The Telegraph
  • The Telegraph
  • The Telegraph
  • "Nigel Farage demands apology from the BBC and Information Commissioner investigates briefing to corporation about his account" by The Telegraph
  • "Banks are allowed to monitor social media of their clients, well to the same degree as other people," a source said last week
  • "We have not denied it, by statement or by answer to the question regarding offensive social media posts," a NatWest spokesman
  • "It is not our policy to exit a customer on the basis of legally held political and personal views. Decisions to close an account are not taken lightly and involve a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements." NatWest
  • "It would only withdraw services "in exceptional circumstances". Barclays
  • UK Finance