Your bank account balance and other related banking information is typically confidential in nature. However, there may be cases when third parties may need to check your bank balance for specific purposes. A few of these situations are described below:
During Physical Bank Visits
The bank teller helping you at the bank can see your bank account balance when he or she is helping you with your banking needs. This is true when you are making a deposit and request your balance, or are withdrawing money and request a receipt for the transaction.
During Phone Banking
When you talk to a live operator during your phone banking session, this operator will request you to verify your identity and typically seek your permission to access your account information. Once this permission is given, he or she will have access to your bank account balances.
When You Are Applying for a Mortgage
When you apply for a mortgage, the prospective lending party may need to assess your financial worth to determine whether you are eligible for the particular amount that you are looking to borrow. Your financial account balance also helps the lending institution assess your credit worthiness and potentially mark a lien against your account to secure themselves against risk of default on the loan.
Financial Underwriting Needs for Insurance Purposes
When you are applying for insurance products, and for life insurance policies in particular, the insurance company’s underwriting department may need to assess your financial worth. This exercise is done for the purposes of your ability to pay the premium, but more importantly to justify the face value of the life insurance policy that you may be choosing.
When Applying for a New Bank Account
You may be surprised, but if you go to open a new bank account at a bank, the bank will seek your approval to conduct a credit check. Part of their background check may require you to furnish the bank with bank statements from your other bank accounts along with a history of your balances and transactions. This helps banks protect themselves against customers who have had credit issues and have had a poor history regarding any prior bank accounts.
When Applying for a New Credit Card or Line of Credit
Banks and financial institutions may require you to provide bank statements and bank account transaction history when you apply for a new credit card, a new line of credit, or even an overdraft facility on the bank account. The information that you provide helps these institutions assess your credit worthiness and help meet credit risk requirements to disburse the loan or credit line.
When Consulting a Financial Advisor
When you consult a professional financial advisor, he or she may request you to provide a copy of your bank account balance as well as your account history to help determine your liquidity needs and cash inflows to manage your finances in an optimal manner. You should be aware that you are typically under no obligation to provide this information and can decline to do so without prejudice.