Gramm Leach Bliley Act (GLBA)

The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act, was established in 1999 to modernize the financial services industry by allowing banks, securities firms, and insurance companies to merge and offer a broader range of financial products and services. It also requires financial services organizations to protect sensitive data and customer privacy, and to explain their information-sharing practices.

The GLBA includes several provisions aimed at ensuring the privacy and security of consumers' personal financial data. Financial institutions are required to provide consumers with a privacy notice that explains the types of information collected, how it is used, and with whom it is shared. Consumers have the right to opt out of having their information shared with third parties, and financial institutions must implement safeguards to protect the confidentiality and integrity of customer data.

To comply with the GLBA, financial services organizations need identity and access management solutions that help them comply with regulatory requirements without sacrificing efficiency. Advanced access management solutions should actually improve productivity by making secure access to digital tools quick and seamless.

Although the act has been subject to criticism over the years, the GLBA remains a cornerstone of financial regulation in the United States, seeking to balance the need for a competitive and innovative financial sector with the protection of consumer privacy and data security.