What happens when Facebook becomes a Bank?

We know that Facebook is now number two on Alexa only one place behind Google. We know people spend 7 hours a month on average using it almost 4 times more than Google. Based on its continuing growing it should catch and pass Google in 2011 and could reach a billion users say by the end of 2012. One billion users. That's alot. By then it should be a public company armed with $10bn of new working capital.

When you have an audience of that size you can sell them lots of things. You can help them buy better. In fact you can sell them everything negating the need for many existing and costly suppliers and their overheads. Many. Obviously you can offer them discounts through group buying. Cellphones, laptops, cars, flights, holidays, gas, electricity, groceries to name but a few. But then when you think about it you want to manage all your members transactions. All. Everything they buy and everything they sell. And at the end of the year wouldn't it be nice if you could complete your members tax return negating the need for most of the Inland Revenue and thousands of civil servants. And then how about manage your members patient records so you can get the best deals on pharma products and healthcare too.

So what happens to the existing banks when Facebook becomes a Bank?

It starts with a Facebook piggy bank, payment system and credit card. Then it's a savings account and a loan perhaps for university. What about a mortgage, life insurance, health insurance, car insurance, house insurance and a pension? Afterall with a billion users these should be the best deals on the planet. Volume speaks price. Low price. This is before you offer your members peer to peer lending like Zopa giving them better interest and lower risk on their savings.

Could it really happen? Are the existing banks holding your attention right now? Do you trust your existing bank? Do you trust Facebook to manage your money? Would you lend Facebook money? Would you invest in Facebook's public offering of shares?

I guess trust is the killer app and it all depends if Facebook can pull that off. My three kids already run their life on Facebook. Is it a big leap to run their money there too? With a billion users and 10% choosing to bank with Facebook that's 100m customers. Wouldn't that make Facebook one of the biggest retail banks in the world? The Friendship Bank. That's a nice tagline.

Should the existing banks be thinking about this? Afterall we know the governments are trying to make it law to separate retail banking from investment (these days called Casino) banking.

What do you think?

Lucas Wyrsch

lucas_wyrsch

What happens when Facebook becomes a Bank?

Facebook Moves into Banking; Allows Users to Bank On SiteDear Thomas, Andrew Redfern from hitSEARCH just wrote that Social media giant Facebook is taking the first steps into the financial sector with Banking 2.0; allowing users to deal with their direct debits, while dishing out 'likes'. It is suggested that by the end of 2012, users in Australia will have access to a Facebook application called Kaching. The app, from Australia's commonwealth bank, is a payments service which will allow users to carry out the majority of their banking without ever leaving Facebook. Kaching by CBA has already launched for iPhone at the end of last year and allows payments to people via their Facebook page. The forthcoming website application represents the first time a major international bank will allow their customers to carry out core banking activities through a social network. This is significant since other major banks are likely to follow suit, especially if the process proves successful. But by being first in line CBA have laid down a marker and could succeed in securing a raft of new, young, internet savvy, customers, or those which might shy away from visiting a traditional bank branch. The app will allow Facebook users to view their various bank and credit cards from within the social media site, see what they owe, what credit they have, view historical payments and make new ones. They can carry out each of these functions without ever leaving Facebook. Andy Lark, Chief Marketing Officer for CBA said: "The utility of this is enormous…and you don't have to leave Facebook to do it. This is a new way of managing your money." Managing Director of Hit Search, Andrew Redfern, claims that many within the industry view this as the natural next step in banking. He said: "We expected that the banking industry would look to capitalise on the popularity of social media, and a generation of much more internet savvy bank users. Should the application prove successful, expect many other large banks to follow suit". What CBA or Commonwealth Bank of Australia will offer on Facebook is a typical TPA or Third Party Administration solution that already exists in health care for insurance companies! Once such banking TPA's will start to increase exponentially, Facebook will get a gigantic bank, the bank of the bank and Marshall McLuhan's quote the medium is the message or the medium is the mass-age will be truer than ever before! Have a great and happy Friday! Best, Lucas

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Clive Eplett

cliveeplett-656327

What happens when Facebook becomes a Bank?

Huh? I searched sailing and found this! Surely the issue is privacy. FB has no concept of privacy, which fits its modus operandi perfectly, so fair enough. Banking is rather different. Confidentiality and trust are still important in some aspects of life, of which banking is a rather big one. FB would fail at the first hurdle for most. So its not gonna happen, at least for anyone who does not want to be unsolicitedly pestered by 37 competitors for each thing they buy

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Milton Rodrigues

miltonrodrigues-136281

And Skoda will Compete with BMW ! :)

I'll still be Banking with the Real Heavyweight Banks ... HSBC and Barclays. :) After watching The Social NetWork & buying a copy of the authorised version, " The FaceBook Effect " ... PRIVACY Issues & Trust are very questionable with FB. MILT.

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Mike "Winfreight" Shraga

mikeshraga-332554

40 billion photos

They manage a libary of 40 billion photographs and growing every second by 200000 , their technology is good enough to handle currency.

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Mike "Winfreight" Shraga

mikeshraga-332554

Facebook currency

It will not happen due to anti trust and competition laws, they might invent a currency like MxIT has here in South Africa called "moola" , banks do a lot more and are ground based. Microsoft,Google and Facebook are here to stay use them to make lots of moola while you can.

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Thomas Power

thomas-power-8

What happens when Facebook becomes a Bank?

uh ho.

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Thomas Power

thomas-power-8

What happens when Facebook becomes a Bank?

1 comments

Mark Sinclair

marksinclair2-218131

What happens when Facebook becomes a Bank?

Thomas, you mustn't spread rumours. _____________________________________ . Mark Sinclair, Founder, yourBusinessChannel Connect with me however you like.  Or simply watch one of over 1,200 FREE shows featuring business people and top tier experts.  If you're looking for more help, the yBC Results Team offers a low risk way to help with your business development.

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Thomas Power

thomas-power-8

What happens when Facebook becomes a Bank?

Just heard a rumour that Facebook are adding a checkout payment system to Facebook Connect login. Bang on schedule ;-) Thomas Power Chairman Ecademy

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Mohammed Al Shamsi

mohammedal-shamsi-593059

What happens when Facebook becomes a Bank?

Looks like a great idea. After some thought, i think that this idea won't deliver any goods. It's the concept of merging 2 very huge ideas together. Lets remind ourselves that Facebook is a social networking site, and what makes it so special is that is is extremely convenient to it's users. By introducing banking, it will eliminate this convenience and instead increase complexity. So facebook as a main bank will not be successful. However, another idea is introducing "mini banking", to avoid the complexity and focus on convenience, and focus on safe returns with a low interest rate by loaning out between facebook users small amounts of money (Just like writing on a wall that simple). What i mean is that if it should be intoduced, "mini banking" should be a PART of facebook.

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Thomas Power

thomas-power-8

What happens when Facebook becomes a Bank?

0 comments

Thomas Power

thomas-power-8

What happens when Facebook becomes a Bank?

0 comments

Thomas Power

thomas-power-8

What happens when Facebook becomes a Bank?

Facebook overtake Google.

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Mike Verdugt

mikeverdugt-65713

What happens when Facebook becomes a Bank?

What happens ? I don't have the time to look up the figures but Paypal is doing rather well. Based as a bank in Luxemburg since 2007 read the whole story at Wikipedia Didn't Richard Branson bought his own Virgin Bank recently ? So even if Facebook starts a bank in what way or whatever they can generate a lot of power. They have set up the advertising part already for items. If they channel those payments through their own banking system..... Could it really happen? Depends on their focus, Ebay bought Paypal. Are the existing banks holding your attention right now? Not in a positive way. Do you trust your existing bank? Never, not now and not in the past, when money involved everybody is a bastard. :-) Do you trust Facebook to manage your money? If they have an official branch in Belgium, Maybe. Would you lend Facebook money? No they have enough resources, maybe but depends on return. Would you invest in Facebook's public offering of shares? Sure bets don't excist, so maybe. Should the existing banks be thinking about this? They will watch closely. Especially the ones with a lot of smal saving accounts. There are already talks about having only virtual money, no cash money anymore. Friendly regards, Mike Verdugt Amerone bvba Geschenken, Gadgets, Gizmo's, Toys and Games http://www.amerone.be

1 comments

Stewart Graham

stewartgraham-319134

What happens when Facebook becomes a Bank?

Thomas People didn't trust online banking until it became a reality and now look at what we do online. Roll on the influence of the existing reducing and bring on the new. I hope Facebook stick to the social conscience they already have if they do go down that line. Social networking sites such as E have already reduced (thankfully) the power of governments and the traditional media by putting information and its dissemination in the hands of ordinary people - fantastic. Kind regards

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jane sewell

janesewell-515238

What happens when Facebook becomes a Bank?

Would Ecademy become a bank if it had the power? Jane coastlight.co.uk Get Twitter Buttons

2 comments

Muchina Thuo

symonthuo-75282

Anticipation....

a)First, Facebook) in this part of the world is for "happy,happy and more happy" and fun. b)I guess trust is the killer app and it all depends if Facebook can pull that off. Are you anticipating the "Tower of Babel" or "a titanic disaster" after IPO ? Asante Thomas Warm regards Entrepreneur, Symon Muchina Thuo www.streamtech.co.ke : End of the iceberg When i am not thinking future enterprise, i am sleeping the future of our children, eating soccer, walking the talk and of course fun..!.

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Pratyush Agarwal

pratyushagarwal-369689

What happens when Facebook becomes a Bank?

I too spend a lot time on Facebook it's like fever

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Ann Andrews CSP

annandrews-72869

What happens when Facebook becomes a Bank?

Interesting concept Thomas - let's face it 'world domination' has been the theme of most horror movies - my hope though is that SOMEONE will come up with an alternative to the banks of today with their greed and hideous bonuses - ann Sign up for our Powertools newsletter which has hot tips and tools for growing your business, and receive a FREE e-book - 378 Predictions for doing Business in 2010. Ann Andrews CSP The Corporate Tool-box Online Business and Training Resources

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Lillian Kyei

lilliankyei-543898

What happens when Facebook becomes a Bank?

Thomas, What!!! let me be honest I am new on social networking so I have no clue how facebook book works. A couple of months ago I opened a free personal account and a paid business account on facebook but I can't find the business profile or I should say the campaign I created on facebook. ????????????? Lillian

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Malcolm McCreery

malcolmmccreery-71842

What happens when Facebook becomes a Bank?

Thomas, Just saw PMQs today and Gordon Brown was talking of Global Problems and Global Solutions. Along with Banking this seems to be his favourite subjects to talk about especially when linked to Global Governance. Certainly he likes to smile when mentioning all the above together. Lately he appears to very in step with the IMF. Facebook is Global, find it hard to believe they command such trust but hey that's just my opinion. Your proposal may get you a knighthood. ;) Call Gordon after all he's open and welcome to input (I'm sure of this as Alan Sugar said similar just the other day, you know it's true ;);) ). Personally I hope it never happens. Malcolm McCreery

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Sally Asling

sallyasling-442607

What happens when Facebook becomes a Bank?

Facebook vs Faceless The beauty if social media is that it breaks away from the corporate company feel, its a social place where we can exchanges and be Less people trust in corporation than ever before, hence the shift back to more cottage industry practises and the know like and trust of doing business with people we know. Facebook would be another huge company with non geographical phone numbers, call queuing and utterly faceless The idea, IMO, would go against the grain that social media is changing the way we do business and the way we want to interact. Sally L Asling Director- SurreyLets Understanding People, Understanding Property www.surreylettingsandpropertymanagement.co.uk

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Mike Turner

miketurner

What happens when Facebook becomes a Bank?

Dennis, Andre (and others) have a good point. The idea of a co-op or mutual society works well in situations where there is a solid element of trust amongst the membership. Local credit unions similarly. Many of the UK's leading financial institutions were started from back room or coffee shop friendly societies. Of interest to Ecademy members though might be the idea of Peer to Peer lending such as that run through Prime Business Club who are operating a scheme in conjunction with Zopa to offer small business loans (up to £15,000) to over 50's with a strong viable business proposition who might otherwise face problems obtaining funding. This is a great idea, particularly in the current climate, for anyone forced into early retirement or redundancy and faced with the impossibility of finding further paid employment. Very often people with great experience who would consider starting their own small business with the right support and who stand a good chance of making a new venture work. There are others doing similar things. Prosper in the USA and Fosik in Australia for instance. Perhaps there is potential for Ecademy members whether Blackstar Boardrooms or otherwise to instigate similar schemes. The Zopa scheme actually runs with the help of the charitable arm of Bank of America which opens up the potential for additional bank, finance company or even EU investment/funding. Worth a thought. What do you think Thomas? Any bankers on Ecademy? Mike

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Dennis Barker

dennisbarker1-545830

What happens when Facebook becomes a Bank?

Thomas, Blackstar Boardrooms are the seed ground for credit unions and farmers markets. I always think mutual, my mother worked in the co-op for ten years when I was at school, its where my grounding and philosophy comes from.Stacking shelves after school at seven years old un til she finished work. My other obsession is the money systems ,credit un ions are away of reclaiming personal ownership and social responsibility for money. Never going to be a bad thing. Ecademy is at its core a place for social relationships and trading with trust.Every commercialisation can be part of that journey and build trust or erode trust. Slowly does it.Video Tips

1 comments

Yvonne Halling

yvonnehalling2-539685

What happens when Facebook becomes a Bank?

I thought you might be interested in this. http://robinhoodtax.org.uk/ I loved your post about Facebook Bank, and I hope you're wrong. Big faceless institutions are always corrupt. As you say trust is the killer app, and when organisations try to monopolise, trust is lost. Keep it small, specialised and valuable (for others) and your business will thrive. Have a great day Yvonne Halling www.madaboutbubbly.com For champagne lovers everywhere 0033 (0)3 26 48 20 52

1 comments

Andre Biester

andrebiester-542547

What happens when Facebook becomes a Bank?

Dear Thomas, When you look at the 'know,like and trust' factor of a social network and the banking industry than there is a perfect match. In the Netherlands there is already a community for start-ups in small and medium-sized business. I think in the near future this will become reality. Sooner than we can imagine. Thanks for the blogpost, André Biester MFE Boekhorstlaan 12 7241 SJ Lochem T (0573) 257155 M (06) 10041420 E info@bureaubiester.nl I www.bureaubiester.nl Ondernemende mensen helpen bij strategische keuzes, belangrijke kruispuntmomenten en complexe financieringsvraagstukken in de directe werkomgeving en/of privé situatie.

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Abdul Ghafoor

abdulghafoor-130256

What happens when Facebook becomes a Bank?

I think Thomas talks more of Leveraging the potential to the maximum and it does not limit to only opening a bank. And I oppose the idea based on the fact that it is not as simple as it might seem. The doing part is the real challenge. Even if we forget about diluting the Brand Image of Facebook what it stands for! Or even do not delve in the debate of should Facebook do it or should it not! The big question is will they be doing all those businesses as a single unit using FB Platform or will they create Multiple units based on the data bank of facebook. In any case it will require an organization of precision which a non commercial organization will produce at humongous cost and Hired CEOs are no guarantee to succeed to take the advantage of seemingly fertile opportunities. The model of producing Good returns on Shareholders' Investment should be based on the existing business model. In my opinion they would be collaborating with Giants in different areas to pass the advantage of the mantra which made them a giant and that's Social Networking or Social Media. If they are able to create Blue Oceans, it would be wonderful. However, if they tried to compete in the existing red oceans, they would bleed profusely. Abdul (Empower Others to Get Empowered) Avenue 5 Restaurant & Cafe

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Vanda-Lynn Hughes

vandalynnhughes-398234

What happens when Facebook becomes a Bank?

I get the feeling that this could be the root of another conspirator theory ..... I wonder. Vanda-Lynn Hughes

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Fabian Bullen DipPFS

fabianb-24156

What happens when Facebook becomes a Bank?

If Google owns Paypal then should we ask why isnt Paypal the chosen bank of millions. Maybe its because people more likely rely on doing business by 'trust with association' . Choosing your bank may be a bit like religion "its what you grew up with and who you trust" Thomas's children are growing up with Facebook but I wouldnt mind betting that the bank they choose is Mum & Dad's one and I dont mean bank of mum & dad. But, I have seen a presentation from Ryan Deiss provided by Marc Summers which is written words accompanied by vocals & no pics etc. Keeps you on the message and very powerful. That system may well be used by Facebook to sell lots of financial products and hence keep expense costs low. But when it come to good financial planning with either small, medium, larger investors and HNW I feel sure that all these people will want 'face to face' discussions. Because that way they can more easily judge if they are getting financial advice they can trust. Fabian Bullen Senior Partner - The Fabian Bullen Practice Wealth Management / Currency Trading / How to Finance a Stradivarius - Article

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Julian Bond

jbond

Privacy?

If Facebook were a bank you'd use it for a year thinking that all your transactions were private. Then Facebook would unanimously decide that transactions were public but give you an option to opt out of public transactions.

1 comments

Stan Broadhurst

stanbroadhurst-134242

What happens when Facebook becomes a Bank?

I wonder Thomas.. if i cast my mind back only 10 or so years this was being asked of Microsoft & the internet then... I cannot imagine why it could not happen then if not now except as if by the fact that the figures that we are pushing around are of fragmented nature etc... I had a view then that a bank could take out a retailer etc etc equally why should Wallmart not be a bank.. but actually none of this is the nature of business .... is it folks ???? is business not where we all take our due for provision of a service of some llk ?? Interestingly we may find those answers out soon enough all the children & grandchildren of people here on Ecademy will see many of their peers getting paid in some way for creativitity or a service rather than for placement in the dirge of 9-5 stuff ... So let us hope that business & competetion prevail & here is to Facebook or Ecademy becoming a bank... It is great here Regards & thanks for the provocation Stanb

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rakesh handa

rakeshhanda-295926

What happens when Facebook becomes a Bank?

well, that's a great thought, but again, will we trust with financial matters with facebook? today with friendly touch we all are on facebook. but yes the exisiting bankers have to seriously think of some great strategis to workout this possible threat.

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David Muruli

davidmuruli-482440

What happens when Facebook becomes a Bank?

Vladmir, and others do bring in an intresting point, mobile money. That is already in place. If you look at Nokia in India With things like "No bank account, credit card or debit card needed No cash loading charges No minimum balance limit" and the ability to "Pay your utility bills from almost anywhere". Sounds to me like for many there is no need to have a bank. Even Vodafone has got into the act If there is one major pain point is International Money Transfer. The fees charged by the banks and Western Union are horrendous. Don't get me started on PayPal. The fees PayPal charges, and PayPal seems to be clueless about international money transfers. Nokia and mobile phone providers are providing a way for many who previously could not afford to open an account to use their services. For me if I could find a financial institution that could compete with the current bank, I would jump. I am so sick of being nickled and dimed, and tricked by my current "too big to fail" bank. The only reason, I still bank with them, is they have ATM's close to me, and they are one of the few banks that do know how to handle International Money Transfers.

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Melinda M. Sörensson

melindasorensson-317938

What happens when Facebook becomes a Bank?

Fascinating idea, Thomas, but the bank regulations here in the US are controlled by a select few and it will be a long time to have them agree to this so it could very well happen for everyone else in the world, but not in the US. Melinda M. Sorensson, Ph.D. Author, My Journey to An Integrated Life Co Administrator, Manifesting Magical Moments Self Growth Expert Ezine Articles Expert Author

1 comments

Vladimir Dimitroff

vdimitroff-19310

What happens when Facebook becomes a Bank?

Critical mass (even 1 Bn users) does not automatically make you a bank - even less does it oblige you to go into banking. Microsoft have 1 Bn users - and didn't become a bank.(And millions of people do run their lives on Microsoft, as do millions of businesses). Despite knowing a thing or two (more and better than Facebook) about making money, Microsoft did't even try to become a bank. Nokia are in the pockets (literally!) of 1 Bn people or more, and also know a thing or two about making money. (Better than Facebook). They are even trusted - more than Microsoft, at least. Yet they haven't applied for a banking license. Not that I know of; not yet. It takes a few more things (even trust alone is not enough) and still banking isn't for everyone - but my point is that critical mass is the last thing that matters. While the abovementioned giants didn't, smaller brands and organisations did become banks. Not 'smaller' as in GE or Tesco, not even 'smaller' as in Virgin. Much smaller banks of local or regional importance that we hardly hear about - but are nonetheless successful and all, without exception, survived the crisis without taxpayer bailouts. Which makes Cornelis' half-serious suggestion worth a (very) serious consideration. Facebook is a platform, but their 1 Bn users are not a community. That mass is fragmented into a multitude of small communities - each of them (much) smaller than Ecademy, because they are just personal circles of contacts. Clusters that are occasionally overlapping, but largely disconnected, and there's no single 'sense of belonging'. In contrast, Ecademy is (still, hopefully) a community - a lot more homogeneous despite its diversity, and with that 'sense of belonging' which is a prerequisite for trust. Trust between members is more important than trusting the platform, especially where the 'mutual' format is to be explored. Ecademy's got what it takes: give the idea a thought, Thomas! :) V. Knowledge: the only product which, once delivered, remains with the provider. Give it away!

1 comments

Abdul Ghafoor

abdulghafoor-130256

What happens when Facebook becomes a Bank?

I can see Big Commercial organizations having their own social networks built around a community of their customers and offering them interesting platform of activities. But i don't see such networks rolling out products themselves. I am not much expert on technology, but those organizations that let other developers build application around their platform have succeeded because they are Open, Random and Supportive and that stimulates creativity. Instead of only your developers trying to create everything, when hundreds or even thousands are using your platform and trying to work their own idea, creativity thrives and we see wonderful applications getting launched every now and then and the speed is amazing. Instead of doing a Bank on its own, I would rather like it co-branding with successful players in Banking Industry and build applications where Bank's customers who are also FB members, can carry out their transactions and FB is being able to charge the bank fee per transaction - Pay per Transaction (PPT). It should partner with Walmart or Carrefour. It should Partner with McDonald's and so on and so forth. In nutshell it should be able to allow commercial entities to set up their stores on it and charge them per transaction that should be fractional cost for the commercial partner but Volumes would produce huge revenues for FB. It should never involve in doing the commercial transactions itself. That would mean numerous litigations for security breaches and compromises. Ecademy should also think of hosting Virgin to sell their Tickets and records at Ecademy's Platform. Abdul (Empower Others to Get Empowered) Avenue 5 Restaurant & Cafe

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Dennis Barker

dennisbarker1-545830

What happens when Facebook becomes a Bank?

Ecademy as a credit union, or a bank? Depends how mutual you think the business model should be? Thomas, think John Lewis Partnership, and the CO-OP. Long term mutual organisations with trust and credibility. Regards DennisVideo Tips

1 comments

Leon Benjamin

leonbenjamin-15187

What happens when Facebook grows up?

They could take another course of action by rejecting the relentless pursuit of profit by steering one billion people to a different set of principles. Principles based on the notion that today's progress must be situated on the side of being rather than of having because the future of humanity is basically about less - doing better with less. A harder but more sustainable outcome for Facebook is to provide more and more functionality that enables a support economy. You know, providing something that people are actually prepared to pay for without relying on the crutches of financial services, banner ads and fast moving consumers goods.

0 comments

Mark Perl

markperl

What happens when Facebook becomes a Bank?

The banks are already on an easy acquisition trail that will most probably end up with five big brands left on the playing fields of our high streets. Fifteen more years should see that as a reality. As social networks consolidate, I believe you're right, Thomas, we'll see the emergence of banking services across all the platforms. Behind each, will simply be one of the five high street brands that will be left. Doesn't HSBC already enjoy an investment of well over 700million dollars in Facebook? It's not a stretch to see the other banks looking to protect their positions by staking their claims behind every available online community. After all, no one truly knows who will be the last man standing. Then, of course, smart phones will ultimately consolidate all banking transactions. Perhaps that's why Google, the futurist, is developing its own devices. Wherever it's going, one thing is for sure, a lack of trust in existing organisations has resulted in a resurgence of trust being vested within communities. Our headlong rush into the future has returned us to age old behaviours. Way back at the beginning, the 'trades' established the original 'mutuals' to collectively secure their money, as a collective, in a closed and trusted society. A network. A social network. History repeating itself perhaps? Not so far fetched after all, Thomas! Mark Perl The Guru Garage Unleashing Courage

0 comments

Sam Borrett

samborrett-372470

What happens when Facebook becomes a Bank?

Hi Thomas, with such keen eyes as yours and the benefit of combining this 20/20 vision with 3 kids and their behavioural activities, it must be a real adventure to watch the Internet unfold. Cheers Sam Sam Borrett Master Mentor, Entrepreneur, Facilitator Mentoring4Change Jupiter Properties Pty. Ltd. EastWest Property Investments Club Freedom PO Box 241 Brunswick Heads, NSW, 2483 Australia

0 comments

Nicky Jameson

nickyjameson-477859

What happens when Facebook becomes a Bank?

A large number of people (millions even) doesn't equal a bank - or anywhere near a bank (and depending where you live, a schedule A, regulated bank). Before Facebook came within sniffing distance, Google might be a consideration. And I wouldn't trust Google either. And let's not forget PayPal... which actually provides something useful. Facebook has an interesting little problem of trust -. Its users don't trust it, primarily because Facebook has done a pretty good job of betraying their trust. Privacy bodies trust it even less. Facebook has an irritating but consistent habit of suddenly deciding that it can do what it likes with their (or should I say our since I am on it) personal information. Such as sell it to advertisers without permission or suddently change their terms and conditions. Or make user's information available through numerous aps. We won't talk about how it arbitrarily forces changes on its users. Since it's free users mostly have to put up or shut up... but sometimes they scream so loud in the that Facebook is forced to listen. Facebook hasn't managed to come up with a good enough advertising model - which it will have to if it's going to turn the platform into a mecca for marketers ( and away from simply "connecting and sharing with those around you"). I highly doubt Facebook will become a bank, but I don't really care if it does, since I won't park my money with them and my profile and anything else will be long gone from it. With each day they are moving further and further from what made them different - and unique. With a good number of its members threatening to leave if they start charging, they might have to look for a whole new raft of customer if they want to go into banking. Personally I think they are doing that already (marketers and companies) and it's a mistake. Making a profit might help too. Even if they promised to clean up their act many would have a hard time believing them. By the way I live in Canada, home of the world's most regulated (and arguably safest) banks. Nicky Jameson, Social Media Copywriter and Blogger http://nickyjameson.com

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Dr. Mehmet Yildiz

mehmetyildiz-306761

What happens when Facebook becomes a Bank?

As an active social networker over a decade, I still don't have a Facebook account. Regards, Mehmet Yildiz

3 comments

Mike Turner

miketurner

What happens when Facebook becomes a Bank?

Perish the thought. My first instinct would be to make a withdrawal Mike

0 comments

David Muruli

davidmuruli-482440

What happens when Facebook becomes a Bank?

Plausible, but a long hard struggle. Walmart, ( a big American retailer), has been trying (http://www.businessweek.com/magazine/content/05_06/b3919046_mz011.htm), for quite some time and has had to struggle with regulatory (some would say political) hurdles.

0 comments

Bob Nicoll

bobnicoll-281004

What happens when Facebook becomes a Bank?

Hi Thomas, Powerful question. Thought provoking as usual. Cornelis' thoughts and comments as well. I wonder what the comments are without the (K)notty words..... How they read.... Interesting stuff. Empowering regards, Bob Bob Nicoll Chief Paradigm Shifter Remember the Ice bob.nicoll@remembertheice.com www.remembertheice.com

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Peter Syme

peter-syme-31451

What happens when Facebook becomes a Bank?

Well they have to do something that is without doubt. No organization builds that amount of potential customers and users and does not try to make money in some way. So they will do something the question is what? If they try to do to much they will fail all organization fail in the end and often that end is brought about by trying to be all things to all people. So they are in a very difficult place right now, they have a whole world of opportunity and that will make the selection of their next move difficult and critical. They need to pick a sector and become the global point of focus for that sector, if they try to be the global point of focus for many sectors they will fail. Is that sector banking? Well if ever there was a time where banking was ripe for a complete overhaul now is the time, however, I suspect Facebook does not have the trust that is essential with banking so it would be a difficult move never mind the huge expertise they would have to gain. Only way would be to buy a international bank with exposure to many countries. There has to be easier markets to enter. I suspect what ever market they enter they will want it to be digital so all they control is data everything else will be outsourced. As always execution will be everything have they got the ability to execute in sectors they d not understand? Skill can be purchased so they should have. I doubt they will go the banking route but they will attack and have the potential to dominate a sector of commerce that is for sure. Peter

0 comments

Steve Greaves

stevegreaves-29631

What happens when Facebook becomes a Bank?

Banks need to be trustworthy. That's taken a hell of a knock in the last couple of years. It has made people question banking in its traditional form. I believe it could change dramatically, but without trust it simply will not happen. Facebook is already a bank. Not of cash, savings or investments. But of information. Will the power that comes with that kind of bank be strong enough to change the way the majority of people perceive their pounds or dollars being handled? An interesting issue. If I had a crystal ball...

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Matthew Simmons

matthew-simmons-23240

What happens when Facebook becomes a Bank?

Really thought provoking post. Facebook a Bank - it could very easily happen - whether it would is another matter - after all Virgin became one, so did the major Grocery Retailers; and Facebook is just a brand after all. It has the trust of new generation - would they care? Not sure they wouldn't prefer a 'trusted' brand such as Facebook (or iTunes ;-) for that matter) over one of the high-street banks run by brand managers that got us all into trouble! Whether it fancies a go at it is another matter. M Matthew Simmons Growing your Business through Planned Marketing Contact me NOW! email me :simmons@henleyinterim.com mobile: 07789 740 146 Connect with me on LinkedIn Twitter @MattinHenley Marketing Consultant Berkshire Interim Marketing Director Marketing Berkshire

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Abdul Ghafoor

abdulghafoor-130256

What happens when Facebook becomes a Bank?

Managing all those things is not easy Thomas. If that was that easy, Amazon.com would be selling everything under the Sun. Apple would be selling refrigerators through Apple stores and Microsoft would have Acquired all the Hardware producers including IBM. Did they lack resources? Management depth is essential. Managing a Social Media Company is much easier than to manage a complex web of host of businesses as you allude and the necessary infrastructure including thousands of employees and Regulatory framework of different countries. As long as Geographical Boundries of countries exist, moving funds from one country to another is not going to be easy without involving their individual central banks. If China can rein in Google and Yahoo, Facebook cant have its way with so many countries. The corporations outdoing countries are still a longshot in a very distant future, IMHO. Abdul (Empower Others to Get Empowered) Avenue 5 Restaurant & Cafe

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kutay f.helvacioglu

kutay-helvacioglu-455117

What happens when Facebook becomes a Bank?

@they are facebook and they should stay that way yes l think they will not beginn this mistake. but that will be very interesting if someone beginns with a "friendshipbank". kutay f.helvacıoğlu lycianprojects.com

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Abdul Ghafoor

abdulghafoor-130256

What happens when Facebook becomes a Bank?

It's a hip thing right now and people are crazy about facebook. Next thing comes along with better appeal people will ditch it as they did my space or so many other seemingly big hits in Social Media. they still do not have as loyal and dedicated community (they might have huge following though) as I would say Ecademy. They have meteoric rise, the fall might be equally steep. Dubai would have continued building mega structures, had the global economic crisis not exposed its vulnerabilities. The hindsight pundits are plenty to criticize it's bubble. However when things were happening all the sages of the ages were lining up to stake their claims on opportunities there. But things do happen as did Global economic crisis. There was a time when everyone was looking towards Sovereign Funds for investment. Then came a time that all those investments made by Dubai Holdings seemed like childish investments. Then people realized that those investments were not based on sound judgment and principles of investment. They just dumped the excess liquidity here and here and every where. Things will happen to Facebook too and they should not spread themselves thin and in those areas that are not their forte. GE has probably the best example of creating their own financial institution but it never became like a citibank, although Citibank too is anything but envious in current scenario. What I mean to say in short is they should not lose focus of who they are and try to find ways of a revenue model within the scenario of being a social media company. Abdul (Empower Others to Get Empowered) Avenue 5 Restaurant & Cafe

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markhutchinson1-236242

What happens when Facebook becomes a GOVERNMENT?

Thomas, Why stop at being a bank? If facebook is big enough to be a country in its own right, then maybe it should run the country as well especially with the elections coming round......Labour, Conservative and facebook? Lets mix things up a little. In a truly democratic society should we not be able to opt out of a broken system that isn't working? Mark Hutchinson Director Tel: 01242 516302 Mob: 07739 710091 Small Business Server Appliances Sharp Technology Limited Montpellier House Montpellier Drive Cheltenham GL50 1TY

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Eoin Healy

eoinhealy1-502505

What happens when Facebook becomes a Bank?

My thoughts would be if this was going to happen it would have happened a long time ago, and the main reason is PayPal & Ebay. They have the market and they will never give it up. If an oppertunity to compete with PayPal/Ebay was ever to arise, google would have whipped it up becuase google are the biggest and best tool used by every person who looks for anything on line, they have the payment processing tools, they have all the making of a great leader in the economic game and could easily control more than 50% of it. But as I said above, PayPal/Ebay would make it very difficult for anyone to take a cut in what they see as 'their market', The day ebay and paypal became one business, is the day they took over the world and started writing their own laws to ensure no other company could come up against them without a major fight on their hands. I did hear tho, that facebook wanted to start charging a monthly subscription to use their service, which if you ask me, is not the way forward, it will put people off using the service.. but as a business they will increase profits a great deal. Not sure if amything I have said makes sense to anyone, but to put it short, If facebook try anything, PayPal (Self proclaimed leader of the world) will not make things easy for them.

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Glen Feechan

glen-feechan-40314

What happens when Facebook becomes a Bank?

Although there are numerous opportunities for Facebook to earn form its user base, extrapolating that to suggest it will attempt to exploit every one is quite a leap. To suggest that it would be successful in exploiting every one is surely a leap into fantasy. The basis upon which it commands that audience is put at risk by every area it moves into. The nature of its networked audience means that every venture would be watched and bad experiences communicated around all of its users in minutes. Facebook can disassociate itself from its advertisers but cannot disassociate itself from Facebook Bank. Every area of business it considers a move into must be carefully thought out. Any highly regulated area, such as banking or other financial services, even more so. It may be able to exploit more of these opportunities through Joint Ventures, but would need to choose its bedfellows very carefully. I think if Facebook were to take the route suggested, that audience could disappear quickly. People use Facebook because their friends are on it. They could all use it to tell their friends which social network they were moving to if they were not happy. Or is that the long term plan, Thomas? ;o) Glen John Feechan BA Hon. ACA Chief Executive Feechan Consulting Ltd FREE Excel Pivot Table Video Not Just Numbers - The Ezine for Finance Directors who know it's not just about the numbers T: +44 (0)845 6439693 F: +44 (0)191 2477103

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Mark Smith

marksmith34-540640

What happens when Facebook becomes a Bank?

I can remember a few years ago about being told careful what you post and say on sites such as Face book as it may come back to haunt you......now imagine your bank knowing one or two things you wouldn't wish them to know......scary where is the divide between social and work and private lifes Mark Smith

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Matthew Newnham

matthewnewnham

What happens when Facebook becomes a Bank?

But back to your core question. I've got a friend in Honolulu who is dedicated to creating a new form of banking (well, like so many other good ideas, it's a bit of 'back to the future'): community-based banking. In a nutshell, think Kiva.org and other micro-financing meeting friendly societies and cooperatives. (In Lynne Twist's language, "south" comes to the "north"...) As you say, trust in traditional banks (both from customers and employees) has gone right out the window (ironically, to Sadie's point, I can tell you from direct experience that many of those employees *do* feel like inmates, thanks to the ones Sadie was referring to). I agree, trust is the big issue here, and I think we're only starting the journey of re-forming trust in a big way, beyond the connections of individual friends and small groups. I truly believe that the businesses that really demonstrate that they understand, value and deserve trust will do tremendously well - and a lot of good - going forward. Matthew Newnham Delta Change Management Ltd "We make a living by what we get. We make a life by what we give" - Winston Churchill

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Ivan Roth

ivanroth-544225

What happens when Facebook becomes a Bank?

Interesting thought, I could see it happen. Would they call it Facebank or stick with Facebook?

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Matthew Newnham

matthewnewnham

What happens when Facebook becomes a Bank?

Thomas, your comment on large networks like Facebook becoming a new country chimes in strongly with what Roger Hamilton has been saying for the past several years. The first time I heard it was over drinks for his birthday in London three years ago, and I thought it sounded very futuristic. Now, with 'the fundamentals' that you've pointed out, I can see this potential looming larger... Matthew Newnham Delta Change Management Ltd "We make a living by what we get. We make a life by what we give" - Winston Churchill

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Martin Goetz-Jablonowski

martin-gj-21500

What happens when Facebook becomes a Bank?

Hi there are probably some easier pickings than retail banking. The crux with RB is cash - ATM's - as well as international transfers and regulations. The EU has and is stepping in to regulate fees etc, thus it becomes easier, but here in Spain it's cheaper for me to get cash and pay someone than do an electronic transfer. Could it become a "scary" monopoly - don't think so as the community on FB for example could easily trigger a rush / switch and may be even more fickle than the standard customer nowadays who is not inclined to change banks easily. Once one is on-line and sort of at ease with the cloud it is virtually a couple of commands and bye bye RB1 hello RB2 Martin Life and business in Galicia Spain

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Mick Say

micksay

More powerful than a government

When a community becomes more powerful than a government/s the governments will react. Interesting future huh... Mick Say www.iqv-consulting.com The Website Design Company www.salon-advice.co.uk The Salon CEO Business Development Coach www.the-web-host.co.ukTransactional Website DevelopmentCall me : 07719 061 835 Email: mick@micksay.com

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Sadie Murray

sadiemurray-275058

What happens when Facebook becomes a Bank? - Demos

"leave many other banks dead in the water."....there is a part of me that says many of them deserve that fate! However, that is about the individuals ( who should be "inmates" actually) that run the institutions. Perhaps it wouldn't be so good in the long run as "power" has been known to go corrupt. Isn't that what happened to begin with? :-) Sadie Murray 847-302-1379 Freelife - Healthy Solutions Lose Weight - Feel Great Freelife - Live it! IMAGINE....Earning What You're Worth!

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markhutchinson1-236242

What happens when Facebook becomes a Bank?

Its certainly going to be interesting to see how things turn out over the next decade or two. It was only last week that Google announced it is going to be come an ISP and deliver high speed broadband access directly in to homes so when you add this capability to their hosted apps that is a winning combination. I for one don't believe they will stop there. I certainly wish that there was another banking option, I for one would be up for giving them a chance at the moment there are too few banks with not enough competition and I don't really know what the difference is between one bank of the next, I just look at who has the nearest branch. I work in technology where on average every 8 years so a disruptive technology hits the market that that shakes everything up, I would love to see something like this hit the banks who still try to provide basic services, with mediocre support and charge high rates for it. Mark Hutchinson Director Tel: 01242 516302 Mob: 07739 710091 Small Business Server Appliances Sharp Technology Limited Montpellier House Montpellier Drive Cheltenham GL50 1TY

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Peter James

peterjames4-264847

What happens when Facebook becomes a Bank?

I cannot see it Thomas. Could google become a bank or microsoft? While I like some of the applicatons of facebook I do not like others. Regardless of their size and purchasing power they certainly will not get my money the way my bank does. However, if they managed to offer a great insurance or some other service,I may go with that one piece. Would I buy shares? maybe just for the short term and then walk off with my earnings. Would I trust them? Hmmm, I hope you are kidding, right? Best regards, Peter James If you are worried about paying to train your people and have them leave you, try not paying for training and have them stay

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Philip Dodson

philipdodson-189777

What happens when Facebook becomes a Bank?

The power of Facebook is far greater than even Google. The opportunity and threats to business is scary. Also when they become truly commercial, their potential power is greater than any other global organisation.

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Gordon Wheaton

gordonwheaton-294525

What happens when Facebook becomes a Bank?

Not sure what is going to happen. But there is interesting thinking from everybody here Regards Gordon

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Richard Stevenson

richardstevenson1-80211

What happens when Facebook becomes a Bank?

Honestly? Facebook does not have that much of my trust (and neither do the banks these days). It's pretty, it's fun .... but when FB keeps losing my information or changing my data as they have done so many times previously ... Thomas, your idea has merit, but such a monopoly would never be allowed - and should not be. Look at Microsoft .... and what has happened over the last few years, especially in Europe. Regards, Richard Stevenson. www.cobblesoft.com

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Abdul Ghafoor

abdulghafoor-130256

What happens when Facebook becomes a Bank?

If they ever try to do that, that would be the beginning of the end of facebook. It's one thing to have a wide spectrum of opportunities but it is quite another thing to avail all those opportunities. They are facebook and they should stay that way. You cant be passionate about all those things equally and the moment they would take commercial rather than passionate approach in the social media economy, they would lose their edge and those opportunities will start falling out like sand through fingers. Passionate Specialization is going to be the name of the game in new economy. Reaching for everything just because that is in your reach would be a fatal mistake in social media economy. Besides, it's never good to compete with your suppliers, buyers and strategic partners. This is what I feel. Or Do I feel a wicked intention here by prompting Facebook to take this route, Thomas??? Abdul (Empower Others to Get Empowered) Avenue 5 Restaurant & Cafe

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Demos Flouri

demosflouri

What happens when Facebook becomes a Bank?

Would they not then basically own the world? that is some power, so great financial strength. What is next? facebook retail? a facebook ebay? They will create a monopoly. I Think it would be easier to manage everything in one place, so for a user then it would be good. For business it could spell disaster as the accumulate all the business and leave many other banks dead in the water. Demos Flouri Web Design | SEO | Logo Design | Leaflet Design T: +44 7985 736 168

1 comments