In an effort to "deepen user engagement" on the platform, Facebook is pitching a deal with major US Banks to partner up and allow Facebook to access it's users financial info. Facebook especially wants to know where you're shopping and what you're buying there.
pixabay, wikimedia, wikimedia
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 & Co., 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. (Source)
The upside for banks is that customers get to do business through Facebook, a huge market where billions of users go. Banks have concerns about the data, given the recent fiasco with data privacy issues.
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.” (Source)
Facebook says it won't use the data to target ads onto users or share it with third parties, but come on, this is the dream for advertisers. This is why they have point cards in supermarkets. They sell your purchase data so that businesses, advertisers and marketers know what products are selling well in certain areas, at what time of day, etc.
Facebook could get even better at targeting users with ads to buy things on the platform. Advertising would have an even better chance at making money, and this would attract even more ad revenue for Facebook. It would also help Facebook recover in value amidst it's historic $120 billion drop in share value last month. But, so far they deny this angle.
Source: tradingview.com
Banks are cautious despite these assurances. One bank reportedly backed out of the talks, despite Facebook's promise not to use the data for ad-targeting. But then, why do they want to get the info for where people are shopping and what they buy? Google and Amazon tried to get banks to join their online platforms and engage in data-sharing agreements too. Banks are keeping their distance (for the time being) from letting non-banking apps and services have access to their users information.
Despite this deal not being sealed, some see it as potential for a market recovery. Facebook's value has sharply risen 2.5% in response yesterday. The value seems to have fallen back down again today though. A lot seems to hinge on this new deal for Facebook.
Thank you for your time and attention. Peace.
References:
- Facebook to banks: give us our users' financial data and we'll let them bank with Facebook
- Facebook Asking Major US Banks To Share Users' Financial Data
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There’s nothing they don’t want. It’s funny that people give them more and more.
Yeah, the next google who wants to take over the world :P I don't think the banks will agree to the deal
I absolutely hope they don't! Although I don't have accounts in any of the banks, I would foresee small banks trying to capitalize on it so it would only get worse.
Facebook needs to be categorized as a utility. that's the only way any type of control can be enforced or imposed on it.
Just like Twitter. They both have the right to sensor what ever they want. When you sign up you agree to the terms and conditions of their making. Only option is don't sign up
Yup, when you sign up you better be ready for them to boot you when they want :/
There's a reason banks won't do this. FAANGs are becoming too powerful. Banks have long been excelsior supreme regarding political and financial power, and the FAANGs are without a doubt challenging, if not already assuming, that power.
How hard would it be for FAANGs to simply apply for charters and become banks, once the customers were already using the platforms for that purpose? Banks are losing a tug of war for financial custom already, and cryptos are shots across their bows.
Allowing FAANGs to be the destination for banking would essentially retire the banks themselves.
But, that's no endorsement of banks from me. When wolves, lions, and bears fight over the sheep, the sheep little care who wins. FAANGs and banksters compete for our meat. Neither is going to secure to us the blessings of liberty. They seek to impart those of neoliberalism, which provides inexpensive warrens for the cannon fodder between profitable wars.
I no longer use either industry. I haven't had a bank account since 2010, haven't used Fakebook or Twatter for years, and recently dropped paying $70/mth for internet.
We don't need them, and they are harming us. FAANGs are censoring us, and the Infowars deplatforming shows clearly that this isn't individual platforms internally using their policies to prevent 'hate'. It's a coordinated centralized program to precisely control what information we see, have, and share. The enemedia is working hand in glove with other corruptors of society to corrupt government, to harm each and all of us.
Quit paying them people! Every dollar you make Fakebook, Wells Fargo, and pay in taxes is used to lie, enslave, and murder people for profit. At this point, if you're not looking for a way off enemedia platforms, and publishing on decentralized, censorship free platforms like Steemit, Busy, Dtube and Dlive, you're the enemedia, or hopelessly compromised.
I don't use banks. I don't post on FAANGs. I'm considering banning those that do from my personal feed. I act unilaterally to walk my talk, and if we all do, not only would my work be easier - defeating the evil banksters profiting from war - but we'd win NOW.
Quit using Youtool, Fakebook, Twatter, and the rest of the enemedia to reach out to normies. No more excuses. They need to die the death of all rapine conquerors, and be relegated to the ash heap of history. We need to move forward towards freedom, not back deeper into the maws of our predators.
Do business, speak freely, and live your lives on platforms, media, and through businesses that don't contribute to oppression, propaganda, and theft.
Here. This is the place!
Thanks @krnel!
Next time we'll see Facebook creating a national ID LOL
That's a pretty sticky wicket there. Facebook already runs its own pseudo-banking app; I can send cash to my daughter via Facebook... and it's very much like a PayPal clone; as long as my bank account is on file with FB, what she receives is like Western Union hard cash... even though the money has to come out of my checking account via EFT.
So it's not much of a reach for Facebook to go from (in essence) "making out" with the banks, to being fully "in bed" with them. I'm pretty sure the behind the scenes pitch FB is making is that the infrastructure is already in place, so this is really more of a marketing opportunity than a money movement opportunity.
Either way, it makes me nervous.
P.S.: The bank account we've tied to FB is "free standing" and used ONLY for FB stuff; that was a deliberate move... it's even at a different financial institution from our "primary" accounts.
Holy Hannah!!! I am sooooooooo glad I kicked Facebook to the curb years ago. You just can't make this stuff up! Reality is crazier than any sci-fi novel I could write. I sure hope you are right about the banks shying away from the idea. I bet they would do it though if the deal is power sweet enough. Insane. The people are losing so fast now....we are in some serious trouble.
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I think they want it to send the related sponsored ads to you in your Facebook feed. It must be safe for users. There is no threat to our banking network.
Nicely explained post, thank you for sharing with us.
The funny thing is that facebook is in the very bad position of being known for fraud. Doing business with them is not really a good idea. Facebooks' may be closing down soon and if not they will have a greatly reduced subscriber base. I can't imagine banker's are going to want to suicide there own creditability, such as it is.
In Economics the term production means process by which a commodity is transformed in to a different usable commodity. In other words, production means transforming inputs into an output. This kind of production is called manufacturing.
These guys are just trying what Tencent is pulling off in China with their WeChat omni-app. If any idiots buys into this privacy invading plan, then they deserve it. You can't free people from the chains they revere.
These guys are just trying what Tencent is pulling off in China with their WeChat omni-app. If any idiots buys into this privacy invading plan, then they deserve it. You can't free people from the chains they revere.