Facebook Proposes Deal With Banks: I'll Show You Mine If You Show Me Yours

Facebook proposes a deal with banks. Give Us Your Data, We’ll Give You Our Users.

Please consider Facebook to Banks: Give Us Your Data, We’ll Give You Our Users.

The social-media giant has asked large U.S. banks to share detailed financial information about their customers, including card transactions and checking-account balances, as part of an effort to offer new services to users.

Facebook increasingly wants to be a platform where people buy and sell goods and services, besides connecting with friends. The company over the past year asked JPMorgan Chase & Co., Wells Fargo, Citigroup Inc., and U.S. Bancorp to discuss potential offerings it could host for bank customers on Facebook Messenger, said people familiar with the matter.

Facebook has talked about a feature that would show its users their checking-account balances, the people said. It has also pitched fraud alerts, some of the people said.

One large U.S. bank pulled away from talks due to privacy concerns, some of the people said.

Facebook has told banks that the additional customer information could be used to offer services that might entice users to spend more time on Messenger, a person familiar with the discussions said. The company is trying to deepen user engagement: Investors shaved more than $120 billion from its market value in one day last month after it said its growth is starting to slow.

Facebook said it wouldn’t use the bank data for ad-targeting purposes or share it with third parties.

“We don’t use purchase data from banks or credit card companies for ads,” said spokeswoman Elisabeth Diana. “We also don’t have special relationships, partnerships, or contracts with banks or credit-card companies to use their customers’ purchase data for ads.”

Banks face pressure to build relationships with big online platforms, which reach billions of users and drive a growing share of commerce. They also are trying to reach more users digitally. Many struggle to gain traction in mobile payments.

Yet banks are hesitant to hand too much control to third-party platforms such as Facebook. They prefer to keep customers on their own websites and apps.

Question of Trust

Any banks that would share such data with Facebook would have to be nuts. I question why such sharing would even be legal.

Meanwhile, Goldman CEO makes this preposterous claim: 'Banks were more responsible citizens in ’08 than some social media companies are today'

Bank actions cost tens of thousands of people their houses. Facebook actions were appalling, but banks actions were financially crippling.

Mike "Mish" Shedlock

Comments (14)
No. 1-13
Jcbl
Jcbl

Wow, banks and Facebook sharing user data.....what could possibly go wrong?

everything1
everything1

With interest rates on the creep... A few things popped into my head. First everything is heading subscription based, and revenue streams are the cream of places like FB, so add revenue is just one stream, well outside of selling your personality, while customizing your advertisements based on who you are, or who they think you are. FB wants a piece of the banking business, pure and simple. They just need to find a way to get it without having to open their own. I notice this with the many institutions who have CC offerings, oh they don't deal with the banking piece, they just slap their name on the front of the card, they just want sales, to move product. So what exactly does FB want out of this. Well, it's more likely they want to know how your really spending your money, this could help their add revenue targeting business, as one article I read stated they wanted access to the users banking transactions. My bank sells my mortgage, now that company sells the mortgage info and quicken loans is cold calling me and sending me flyers in the mail and they even know my payment/balance. Their is a way to make this work, they just have to figure it out. I mean .. we know they are not going to use the information the way they say they're going to, from banks, to social networks, to credit reporting agencies, to the government, have shown that they are perfectly capable of going whoops I guess the hackers took that information from us, or finding some backwards/reverse way of using the information/data.

BoneIdle
BoneIdle

In the last few days the login screen to ebay has changed. You can now login with your Facebook details as well as ebay's. Looks like facebook is already into paypal.

MntGoat
MntGoat

"Bank actions cost tens of thousands of people their houses"

......technically many of those people who "lost" their houses in the crash never should have been in houses to begin with. They should have stayed renters, and quickly went back to being renters. They put zero down, had horrible credit, and should have stayed renting. And many lied on their loan applications, speculated on investment property, and cashed out all their equity to buy boat boats and RV's. I never fell too much for the "poor little victim" home owner thing.

Yes I agree the banks were majority to blame for the whole thing for making those loans to begin with, and the ratings companies of course. But I always thought the poor little victim homeowner thing was a bit overplayed and overrated by the media during the GFC. If someone speculates on any other asset with leverage and it crashes in price, no one whines about the 'poor victims" who lost money.

But yeah I still agree with the main point your post, banks were definitely far worse citizens then social media companies today.

CzarChasm-Reigns
CzarChasm-Reigns

Why don't people get paid for furnishing THEIR data to the companies who seem to VALUE it so much?