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Social Banking: The Peoples Banking

By Richard Greenwood

Republish: EasyPublish™
Published: 08May2009
Word count: 496
Viewed: 418 time(s)

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With the recent collapse of some of the big banks around the world, consumers are having second thoughts if they will stash their money in savings accounts. The traditional banking system is now having a serious confidence problem. That is why people are slowly discovering the benefits of banking 2.0 or social banking.

Social banking utilizes the methodologies employed by Web 2.0 or the socialization of Internet technology. That is why social banking has been dubbed as banking 2.0 because it integrates general banking concepts and systems with the social aspects of the web.

With social banking, you can build your money through online savings accounts and at the same time enjoy the social networking features that are too common nowadays on the Internet. Banking 2.0 therefore provides new facilities for consumers to take advantage of a banking system that has a socially-oriented face.

The Innovative Banking 2.0 Pioneers

Social banking started as a peer to peer online lending system where individuals can lend and borrow money from each other. The doors of banking 2.0 were opened by pioneering social banking networks like Zopa.Com in the UK and Kiva.Org.

Zopa.Com is a peer to peer social lending network where individuals can become a lender and a borrower. It virtually eliminates the role of middlemen bankers thus significantly cutting interest rates for available peer to peer loans.

The concept of peer to peer lending and banking 2.0 was broadened to encompass social financing through the efforts of Kiva.Org. This global social banking network provides a platform for individuals to help marginal entrepreneurs through peer to peer lending program.

In Australia, the innovation of banking 2.0 and social banking was introduced by SmartyPig. This is a highly refined social banking system where individuals can maintain savings accounts and also enjoy the social network features as seen on Facebook and other social networking sites.

SmartyPig allows you to open savings accounts for free so you can attain your short term financial goals. It revolutionizes your banking experience because your savings accounts can work towards your defined financial goals. Most importantly, your social banking network of friends can help significantly in attaining your financial goals.

Banking 2.0 Can Help You Stay Afloat During Crisis

Banking 2.0 redefines consumer spending. For example, with SmartyPig Australia, you will be encouraged to maintain online savings accounts so you can save first before you spend. Your savings accounts therefore take precedence over spending which can improve your financial position.

Through banking 2.0 savings accounts, you can clearly feel the worth of your efforts. By enabling you to set specific goals for your savings accounts, the banking 2.0 network will be able to make you a more conscious spender.

And with the existence of peer to peer lending and borrowing networks, you will have an easy access to social financing. In effect, social banking not only allows you to keep profitable online savings accounts but can also extend innovative financial facilities for you where you deal not with bankers but with your peers.

This article on savings goals is by Richard Greenwood of the Click 4 Group network of finance comparison sites that allow you to compare high interest savings account offers and compare banks to find the best rates available.

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