An article relating to this blog post on Finextra:
Could Facebook wipe out the banking industry?
Social networking site Facebook has the potential to wipe out the traditional banking industry by moving agressively into peer-to-peer lending, says Thomas Power, CEO of online business network ecadem...
I love articles like this that are really only interesting for their "Hype" value. Facebook, while an impressive social networking site is far from a bank. The skills and business value of running a bank are far different from their current operations and
the leap to another industry is pretty daunting.
If we look at marketplaces such as Zopa it's hard to say they are successful. With a significant operating loss and multi-year retained loss and a very low single digit marketshare of lending after a significnat number of years in the marketplace simply
demonstrates how difficult it is to create a revolution in consumer finance.
Would the ROI of running a bank really be the best business case for Facebook?