Cheers to Mashable for this post on a new finance site/model in which banks bid for consumers:
MoneyAisle
June 9, 2008 — 04:05 AM PDT — by Kristen Nicole —
MoneyAisle’s service launches today, and its offering may be something that becomes more commonplace in the coming years. As banking options move online, and comparative tools like LendingTree streamline the process on the banking and consumer side, one trend in particular is slowly overtaking the banking industry overall.
Consumer-centric models of banking and custom features are core to MoneyAisle’s service, which revolves around an online auction marketplace where banks bid for customers. It’s almost the reverse of an auction site like eBay. Banks using MoneyAisle can bid against each other in live auctions, starting with certificates of deposit (CDs), and high-yield savings accounts. These are the first two product offerings from MoneyAisle, and the company expects to expand beyond these two for more consumer offerings in the near future. Upon today’s launch, MoneyAisle has about 100 bank partners.
Aside from providing a 24/7 live auction service that aims to give consumers the best rate possible as banks literally compete for customers, MoneyAisle is touching on several developments we’re seeing in the banking and lending industries. The overarching trend is the leveraging of technology and online networks for the ability to survive.
But will MoneyAisle work? The concept will surely continue to develop, that’s for sure.
Sites like Zopa are taking a similar approach to lending, as consumers are able to put their requests (amount, interest rates, etc.) on the table and receive loans accordingly. We’re also likely to see services similar to MoneyAisle emerge in the coming year, as more banks become willing to participate in such services.
Banks are readily becoming more consumer-centric, looking to technological innovations in order to provide a competitive, custom experience. Capital One lets you customize your credit card with a photo, and JP Morgan Chase is planning on using Rearden’s concierge features as a perk for its banking customers.
http://mashable.com/2008/06/09/moneyaisl/
No comments:
Post a Comment