Social banking on the rise
Wednesday, 16 July 2008 12:05pm
Social banking platforms will capture 10 per cent of the worldwide retail lending and financial planning market in two years time, according to Gartner.
The term, social banking includes trends such as green practices, social entrepreneurship and peer to peer lending and financial planning services using social networks with banking capabilities such as Zopa and Lending Club.
"This combination of business, non profit organizations and social justice is being bolstered by general consumer trends and social causes that appeal to consumers to ethically," said Alistair Newton, Gartner research vice president.
"More consumers are generally spending more time in social networks which increasingly form part of consumer purchase processes for new products and services."
Gartner said, instead of developing a social banking platform, banks should partner with financial social networks and assist the networks in transaction processing and risk management.
Michael Hobbs
