‘ Banking is essential, Banks are not’ Bill Gates The competition comes from outside the industry
Money = Margin <ul><li>Money is no longer the territory of banks. More and more non-financial companies will develop or sell financial services as an additional service to their basic product. </li></ul><ul><li>They do this because the financial services generate more revenue than the basic product. </li></ul>
Zopa introduced peer-to-peer lending An online marketplace where people meet to lend and borrow has huge cost advantages which is why Zopa members get a fairer deal when it comes to their money. In Zopa’s wake, copycats such as Prosper in the US, Smava in Germany and Boober in the Netherlands have sprung up across the world. Social Lending is a financial category of genuine and increasing importance.
Social networks are the dominant internet hotspots <ul><li>Social networks combine entertainment, communications, news, hobbies, and gossip. They are almost like a mashup of every major medium: television, radio, magazines, and newspaper combined with communications both private one-to-one and public broadcast modes. </li></ul>Banks must be where the people are
Financial Institution Opportunities on Social networks <ul><li>4 financial services already launched on Facebook: </li></ul><ul><li>Lending Club's person-to-person loan marketplace </li></ul><ul><li>Prosper's lending game </li></ul><ul><li>Wesabe's personal finance groups </li></ul><ul><li>Pay Me , a payment service developed by Australian Ad Agency, Yellow Media using the PayPal engine </li></ul><ul><li>But so far there is no: Bank, Credit union, Credit card issuer, Mortgage lender, Brokerage (although there are several stock monitoring service including Forbes, Yahoo, and Social Picks), Rates tracking service, Credit report monitoring service (though Identity Guard is advertising heavily today),Identity theft protection service </li></ul>
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