Governance document

CA-D-000212

Betterment Privacy Policy

Betterment

Last change detected July 1, 2026 Privacy policy

SHA-256: df9007de0116b44d59a… 3 versions captured 1 change documented

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This page describes what the document states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability may vary by jurisdiction. Methodology

108 Total

28 High severity

56 Medium severity

24 Low severity

Key Facts

What assurances does Betterment receive from its generative AI technology providers?

Betterment receives assurances from its generative AI technology providers that users' personal information is not used for the purpose of model training.

Is personal information used for the purpose of model training?

Betterment receives assurances from its generative AI technology providers that users' personal information is not used for the purpose of model training.

May Betterment's use of advertising technology be considered a 'sale' or 'share' of user information under some State Privacy Laws?

Betterment's use of advertising technology on its website may be considered a 'sale' or 'share' of user information under some State Privacy Laws.

Will Betterment rent or sell user information?

Betterment will never rent or sell user information to anyone.

Can account holders opt out of certain communications related to account administration?

Betterment prohibits account holders from opting out of certain communications related to account administration, including billing, statement and trade confirmation delivery, and certain regulatory matters.

Can users opt out of administrative communications such as emails containing account statements?

Betterment prohibits users from opting out of administrative communications, such as emails containing account statements, notices of account changes, or updates to terms and conditions.

May Betterment disclose personal information in response to legal process?

Betterment may disclose personal information in response to legal process, such as a court order, summons, or subpoena, or as permitted or required by law when Betterment reasonably believes it is necessary or appropriate.

When may Betterment disclose personal information?

How does Betterment conduct identity verification?

Betterment conducts identity verification through Socure, which may require collection of facial images including headshots from identification cards and selfie photographs.

May identity verification require collection of facial images including headshots and selfie photographs?

Betterment conducts identity verification through Socure, which may require collection of facial images including headshots from identification cards and selfie photographs.

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Summary

This document explains how Betterment handles your personal information — what it collects, who it shares it with, and how long it keeps it. Betterment will never rent or sell your information, but it does share it with third-party service providers including generative AI vendors, and its advertising technology on its website may count as 'sharing' your data under some state laws. You cannot delete your data within the first three years, and you cannot opt out of administrative communications such as account statements and terms updates.

Analysis

This privacy policy establishes the conditions under which Betterment collects, uses, shares, and retains personal information from its users. Betterment requires personal information as a non-negotiable condition of becoming a customer, conducts identity verification through the third-party vendor Socure (which may collect facial images), and compares users' identifying information against government-provided terrorist watchlists. Betterment commits absolutely never to rent or sell user information, while acknowledging that its advertising technology on its website may constitute a 'sale' or 'share' under certain State Privacy Laws. Customer data is subject to a minimum three-year retention obligation under US regulatory requirements, Betterment retains unilateral authority to amend the policy at any time and at its discretion, and users cannot opt out of administrative or account-related communications.

What this means for you

If you are a Betterment customer, providing personal information is mandatory — there is no way to use the service without it. Your data will be kept for at least three years regardless of any deletion request, and you cannot opt out of billing, statement, trade confirmation, or regulatory communications. Betterment shares your personal information with generative AI providers, relying on those providers' assurances that your data will not be used for model training, but that protection is not a right you hold directly. Betterment's advertising technology on its website may be treated as a 'sale' or 'share' of your information under some state laws — if you are in a state with such protections, you may have the right to opt out of that activity by contacting Betterment.

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1 important change detected

3 versions captured · Last updated: July 2026

July 1, 2026

medium

What changed Betterment updated its Privacy Policy on July 1, 2026 to remove two sentences about its optional account recommender tool and generative AI summarization feature, and replaced them with broader language addressing AI service providers and a new securities lending program. The revised terms add explicit disclosure that generative AI providers receive assurances personal information is not used for model training, introduce a new Fully Paid Securities Lending program through Apex Clearing where customer data is shared, and modify language about how support communications may be processed by third parties. The change also removes prior language about contacting Betterment Support and AI processing, replacing it with language about sharing personal information for promotional offers requiring offline fulfillment.

Why this matters The updated policy discloses a new Fully Paid Securities Lending program through Apex Clearing, under which Betterment will share customer personal information and account details with Apex if customers choose to participate. The revised terms also establish that generative AI service providers have committed that personal information will not be used for model training. For customers participating in promotional offers requiring offline fulfillment, the policy now explicitly states that personal information including mailing address may be shared with third-party partners. You can review the FPSL Program supplemental disclosures for details about the securities lending arrangement, or choose not to participate in the program.

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Featured, High severity

Advertising Technology May Constitute Sale or Share Compare →

The clause is consequential because it acknowledges that Betterment's advertising technology practices may trigger legal protections afforded to consumers under State Privacy Laws governing the sale or sharing of personal information.

Added July 10, 2026 Standard Seen across 288 platforms
AI Provider Not to Use Data for Model Training Compare →

The clause is consequential because it defines the extent of Betterment's stated protection: the safeguard rests on third-party assurances rather than Betterment's own direct control over how AI providers use personal data.

Added July 10, 2026 Standard Seen across 217 platforms
Betterment Will Never Rent or Sell Information Compare →

The clause is consequential because it constitutes an absolute, unqualified prohibition on two specific forms of commercial transfer of user information.

Added July 10, 2026 Standard Seen across 288 platforms
Cannot Opt Out of Account Administration Communications Compare →

The clause is consequential because it removes the user's ability to decline specific categories of communications as a condition of holding an account.

Added July 10, 2026 Unique
Cannot Opt Out of Administrative Communications Compare →

The clause is consequential because it removes user control over a defined category of communications that Betterment classifies as administrative.

Added July 10, 2026 Unique
Disclosure in Response to Legal Process Compare →

The clause is consequential because it authorizes Betterment to disclose personal information to third parties outside the user relationship under legal compulsion or legal permission combined with Betterment's reasonable belief.

Added July 10, 2026 Standard Seen across 273 platforms
Facial Image Collection via Socure Compare →

The clause is consequential because it discloses that biometric-adjacent facial image data may be collected and processed by a third-party vendor, Socure, as part of Betterment's identity verification process.

Added July 10, 2026 Standard Seen across 296 platforms
Generative AI Providers Receive Personal Data Compare →

The clause is consequential because it confirms that personal information is disclosed to generative AI providers, while the only stated protection against training-data use is assurances received by Betterment rather than rights held by users.

Added July 10, 2026 Standard Seen across 288 platforms
Minimum Three-Year Customer Data Retention Compare →

The clause is consequential because it establishes that customer data cannot be deleted within three years, limiting any practical effect of deletion requests during that period.

Added July 10, 2026 Standard Seen across 275 platforms
No Account Without Providing Personal Information Compare →

The clause is consequential because it makes the provision of personal information a non-negotiable condition of access to Betterment's services.

Added July 10, 2026 Standard Seen across 265 platforms
Right to Amend Privacy Policy at Discretion Compare →

The clause is consequential because it grants Betterment unilateral authority to alter the terms governing users' personal information without restriction on timing.

Added July 10, 2026 Standard Seen across 289 platforms
Terrorist List Comparison of Identifying Information Compare →

The clause is consequential because it discloses a mandatory screening practice in which users' identifying information is matched against government terrorist watchlists.

Added July 10, 2026 Standard Seen across 279 platforms