Fidor Bank Sets Its Interest Rates Based On Facebook Likes
Charlotte Joyce Kidd — September 21, 2015 — Business
References: fidorbank.uk & businessinsider
Fidor Bank is a totally unconventional digital banking service.
The German-based bank has no branches, choosing to exist only in the digital sphere. Fidor Bank acts like a sharing economy app more than it does a traditional bank. Rather than writing its own loans, Fidor facilitates lending and borrowing in every format, from peer-to-peer lending to foreign exchange brokerage.
Fidor Bank customers can store their funds with the online banking service as they would a traditional bank. But even this feature has a totally unusual twist -- the interest rate of Fidor Bank's savings account is based on the number of likes on the banking app's Facebook page. The rate is currently set at 0.25%, but it will increase by 0.05% for every 2,000 Facebook likes Fidor Bank receives.
The German-based bank has no branches, choosing to exist only in the digital sphere. Fidor Bank acts like a sharing economy app more than it does a traditional bank. Rather than writing its own loans, Fidor facilitates lending and borrowing in every format, from peer-to-peer lending to foreign exchange brokerage.
Fidor Bank customers can store their funds with the online banking service as they would a traditional bank. But even this feature has a totally unusual twist -- the interest rate of Fidor Bank's savings account is based on the number of likes on the banking app's Facebook page. The rate is currently set at 0.25%, but it will increase by 0.05% for every 2,000 Facebook likes Fidor Bank receives.
Trend Themes
1. Digital Banking - Disruptive innovation opportunity: Explore new ways to provide banking services predominantly through digital platforms, eliminating the need for physical branches.
2. Sharing Economy Banking - Disruptive innovation opportunity: Develop a banking model that facilitates lending and borrowing in various formats, such as peer-to-peer lending and foreign exchange brokerage.
3. Social Media-based Banking - Disruptive innovation opportunity: Integrate social media engagement metrics to determine interest rates or other financial incentives, leveraging the power of social networks.
Industry Implications
1. Online Banking - Disruptive innovation opportunity: Create digital banking services that cater to customers' needs without the requirement of physical branches.
2. Fintech - Disruptive innovation opportunity: Explore innovative technologies and platforms to revolutionize traditional banking operations and customer experiences.
3. Social Media Marketing - Disruptive innovation opportunity: Develop strategies to leverage social media engagement and analytics for offering personalized financial products and services.
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