Betterment uses your financial information, including investment account details and transaction history, to provide and improve its investment and savings services.
This analysis describes what Betterment's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The clause establishes the legal basis for Betterment's collection and processing of personal financial information across multiple institutional functions, from core service delivery to secondary uses such as product analytics and marketing communications.
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.
View change record →Removal of this standalone provision's content is absorbed into more comprehensive 'Sensitive Financial Data Collection' provision that covers both collection and use of financial information.
View full change record →Your investment transactions, balances, and financial goals are processed by Betterment to deliver personalized financial advice and automated portfolio management, which is core to the service but also represents significant data exposure.
How other platforms handle this
We will only use your Personal Data to provide services directly to you...and/or to provide services to you on behalf of our clients...except as otherwise described in this Privacy Policy or with your consent.
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We evaluate Service Data to help us improve the performance and functionality of Cloud Services.
"Betterment uses your personal information to provide financial advice and other services; enhance your customer experience; improve our products and features; provide customer support; open, operate, and maintain your account in accordance with US law; investigate and understand how Betterment is used; monitor and protect the security and integrity of Betterment; and better market and advertise Betterment's services.Excerpt from Betterment's Privacy Policy
Use of customer financial data for service delivery by a registered investment adviser is regulated by SEC Rules and FINRA conduct standards, in addition to GLBA privacy requirements.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
We read the privacy policies and terms of service of 38 AI platforms. Here is what they say about training, retention, arbitration, and liability.
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The clause establishes the legal basis for Betterment's collection and processing of personal financial information across multiple institutional functions, from core service delivery to secondary uses such as product analytics and marketing communications.
Your investment transactions, balances, and financial goals are processed by Betterment to deliver personalized financial advice and automated portfolio management, which is core to the service but also represents significant data exposure.
ConductAtlas has identified this type of provision across 278 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Betterment.