A new Web site where banks competitively bid against each other for savings customers through auctions has been launched in the Netherlands.
To use the Spaarbod site, customers enter the amount of money they want to deposit, for how long and on what terms. The site calculates the best rates and offers the user the chance to sign up.
However, they can also choose to have their data sent on to participating banks, which can bid for the business. Within a day the user receives an e-mail listing the five highest bidders and can pick the best offer.
The service is free for customers, with banks paying a commission for every bid that results in a savings deposit.
According to local press reports, nine banks are currently signed up to the market, which launched on Saturday.
Another Dutch site, Bank2You, offering a near-identical service is currently in testing and expects to launch later this month.
Both follow the model MoneyAisle, which launched in the US last June. The site has proved a big success, generating over $100 million in CD and High-Yield Savings deposits for banks across the US in the fourth quarter of 2008.
It also recently made the retail channel delivery and management category of the Finextra Innovation Showcase.