Social network | Kevin Harrington

I guess it is an age thing, but I was surprised to see a Barclaycard running on the MasterCard network. In my day Barclaycard seemed to become Visa and Access became MasterCard (I do know that it wasn’t quite like that!).

Anyway, park my misconceptions and this is actually an interesting story: Barclaycard US have launched Barclaycard Ring, a social network credit card/social credit card. Driven by the influence of an online community of card members, the new card will offer a low (8%) interest rate, low fees, simple terms and the opportunity for card members to shape and share in the product’s financial success.

For the first time, through a virtual card member community, Barclaycard Ring card members will have visibility into the card’s financial profit and loss statements. An online framework will provide card members with the ability to influence decisions that impact how the card is managed and serviced and a unique Giveback(TM) program will enable the community to share in the profit generated from its collective decisions.

Using social media, the community will also provide a forum where card members can exchange ideas, share knowledge and provide direct feedback to Barclaycard US to help determine future features of the product.

“Through simple and transparent terms, we want to pull back the curtain that has traditionally separated banks from their customers and give our community a say in weighing economic tradeoffs that can create a better card member experience,” said Paul Wilmore, Managing Director-Consumer Markets, Barclaycard US. Wilmore went on to say, “Some might say we’re creating a virtual credit union or community bank, but we’re taking that model much further by giving our members a seat at the table to help decide what card features and benefits are really best for them.”

Barclaycard Ring is currently in alpha testing and will be available to consumers later this spring.

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New competitors for established businesses can come from surprising places. If all a bank does is monitor competition from other banks they could be in for a surprise or two.

Here are a couple of lines from CNN:

“It’s become increasingly clear in recent weeks that Facebook is finally inching toward the launch of a micropayment platform.

“The social site has been expanding the presence of its virtual currency, which Facebook debuted last November when it changed the monetary units for its “Gifts” product into “credits” rather than U.S. dollars.”

How near is Facebook Bank plc? If you read the whole artice, and an interesting article it is too, you will not see the mention of Facebook becoming a bank. But with the possible developments discussed they get a stage closer. And with in excess of 200,000,000 members what a constituency to work with.

The additional reason why Facebook could suprise markets and excite the public is trust. Trust is the basis for most relationships. The Edelman Trust Barometer talks about this in great detail.

We all like to deal with businesses we trust. Trust in conventional banks is at a low. Here Joe Garner, HSBC, talks eloquently about trust in banks.

Facebook could become a bank. eBay, with PayPal has already created a new bank model. Who else would the world’s public trust with their money?

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