Banks bid for customers on MoneyAisle auction site

Banks bid for customers on MoneyAisle auction site

A new Web site where banks competitively bid against each other for customers through secure live auctions has been launched in the US.

The MoneyAisle site from neoSaej - a start-up developer of online auction marketplaces - currently has 65 participating banks bidding on certificates of deposit (CDs) and high-yield savings accounts. NeoSaej says a further 25 banks are expected to join the marketplace in the next few week.

To initiate an auction, buyers use the site to set the amount of money they wish to invest in a high-yield savings account or CD, as well as the duration of the CD term. The auction then begins immediately, with participating banks bidding for the customer's business in real time. Once a bank wins the auction by offering the best rate, the customer can choose whether to accept it or not.

NeoSaej says MoneyAisle inverts the online auction model used by firms like eBay, where buyers bid against each other. By making the seller bid, the firm says it is shifting the burden of finding the best rate away from the buyer and driving prices down.

"Our revolutionary technology not only offers a new buyer-centric purchasing model, sellers have absolutely no ability to influence the process outside of competing for customers, encouraging them to generate their best prices and rates," says Mukesh Chatter, president and CEO, neoSaej.

NeoSaej says MoneyAisle can offer better deals than comparison shopping aggregators because it is updated in real-time and ensures impartiality by not accepting any advertising.

Says Robert Freund, advisory board member, neoSaej: "The technological innovations that neoSaej is pioneering have the opportunity to alter the way business is conducted on the Internet. Instead of accepting the price offered, consumers now have banks competing for their individual needs."

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