(17 June 2008 – USA) The banking roles have been reversed on an auction site in the US where banks bid to give the best rates to potential customers.MoneyAisle, a site created by neoSaej, a start-up developer of online auction marketplaces, allows banks to competitively bid against each other for customers through a live auction.
The recently launched US site has 65 participating banks with another 25 banks set to join in the coming weeks. The main product areas under the hammer are certificates of deposit (CDs) and high-yield savings accounts.
On the other side of the coin, individual buyers set the amount of money they wish to invest in a high-yield savings account or CD, as well as the duration of the CD term. The customer can choose whether or not to accept the best rate offered.
NeoSaej says it has shifted the burden of finding the best rate away from the buyer, which will therefore drive prices down and interest received up.
Mukesh Chatter, president and chief executive of neoSaej said that sellers have absolutely no ability to influence the process outside of competing for customers. He added that this encourages them to generate their best prices and rates.
He concluded that consumers can now meet their individual needs.