NVIDIA Update keeps your PC up-to-date with the latest NVIDIA drivers by notifying you when a new driver is available and directing you to the driver on Starting with R275 drivers, NVIDIA Update also provides automatic updates for game and program profiles, including SLI profiles.
To fix problems with these features or to take advantage of them, you may need to update your graphics card drivers. In Windows 10, all drivers are automatically downloaded and installed through Windows Update but you can manually search for an updated graphics driver.
See Microsoft's support article, Update drivers in Windows 10 for details.
You can also configure whether or not you want notifications for beta drivers and configure whether or not you want system tray balloon notifications.
NVIDIA Update does not collect any personally identifiable information.
The general rule of thumb for graphic card display drivers is "if it ain't broken, don't fix it".