Facebook set to rival banking
(17 March 2010 – Australia) The chief executive officer of Online Business Network Ecademy, Thomas Power, has said that Facebook has the potential to wipe out the traditional banking industry if it moves aggressively into the peer-to-peer lending market.
With Facebook expected to boast over a billion members by 2010, the social networking site has the potential to leverage its large user base to move into an entirely new business territory, Mr Power told Finextra.
Mr Power added that all it starts with is 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.
The social media site is already currently looking to create its own currency with the launch of Facebook credits.
Facebook said, on its developer’s website, that the long-term goal of Facebook Credits is to provide a currency that makes purchasing virtual items across applications fast and simple.
An successful example of social lending is Zopa, launched in the UK in 2005, which has seen steady growth with deposits doubling in each of the past three years.
Mr Power highlighted Facebook's potential, adding that if of the billion users 10 percent chose to bank with Facebook, that would provide a 100 million customers worldwide; making Facebook one of the biggest retail banks in the world.
Mr Power added that all it starts with is 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.
The social media site is already currently looking to create its own currency with the launch of Facebook credits.
Facebook said, on its developer’s website, that the long-term goal of Facebook Credits is to provide a currency that makes purchasing virtual items across applications fast and simple.
An successful example of social lending is Zopa, launched in the UK in 2005, which has seen steady growth with deposits doubling in each of the past three years.
Mr Power highlighted Facebook's potential, adding that if of the billion users 10 percent chose to bank with Facebook, that would provide a 100 million customers worldwide; making Facebook one of the biggest retail banks in the world.
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