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Businesses Facebook The Almighty Buck

Facebook To Be 'Biggest Bank' By 2015 301

Posted by CmdrTaco
from the farmville-for-real-bucks dept.
angry tapir writes "The explosion of social networking commerce will lead to the unlikely candidate of Facebook becoming the world's biggest bank by the middle of the decade, according to a technology observer and entrepreneur. People who don't have a Facebook account should get one or risk having a financial profile created for them says founder and president of Metal International, Ken Rutkowski."
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Facebook To Be 'Biggest Bank' By 2015

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  • Rip off bank fees (Score:5, Interesting)

    by vlm (69642) on Wednesday April 13, 2011 @08:02AM (#35806476)

    How will it work culturally to have rip off bank fees on a "free" social networking site? If someone complains in a post about being ripped off, will they censor? Or will it be part of the criminally enforceable terms of service not to disparage FaceBank?

    • Let's back WAY up.

      Facebook as a BANK?!

      How wrong is THAT?

      "FaceBook. The bank that Likes you."

      • by Chrisq (894406) on Wednesday April 13, 2011 @08:11AM (#35806572)

        Let's back WAY up.

        Facebook as a BANK?!

        How wrong is THAT?

        "FaceBook. The bank that Likes you."

        I think that to say "Facebook will be the worlds largest bank" is about as accurate as saying "Farmville will be the world's largest agricultural business".

        • Someone with points mod parent up. Best line I've seen in quite a while!

        • Re:Rip off bank fees (Score:5, Informative)

          by MoonBuggy (611105) on Wednesday April 13, 2011 @08:32AM (#35806898) Journal

          For those who haven't RTFA, that's actually a pretty good analogy. The reasoning they use seems to go something along the lines of: "Facebook credits are kind of like money. Also Facebook has a shitton of users. They'll probably be dealing direct with banks for an exchange mechanism soon enough. That makes them a bank with a shitton of customers, right?".

          By some fairly tenuous leaps of logic I can see what they're getting at, but it's hardly what the headline claims.

          • by Macrat (638047)

            Also Facebook has a shitton of users.

            More like a shitton of marketing accounts.

          • by _Sprocket_ (42527)
            Reading the article (RTFA jokes follow here) made feel like I was watching a shell game.
            • No, reading the article made you feel like you were playing 3-card Monte. Let me tell you why... When you're having your palm read, someone is trying to predict the future. If you've never had your palm read, you better start. Let me tell you why...
        • by ackthpt (218170)

          Let's back WAY up.

          Facebook as a BANK?!

          How wrong is THAT?

          "FaceBook. The bank that Likes you."

          I think that to say "Facebook will be the worlds largest bank" is about as accurate as saying "Farmville will be the world's largest agricultural business".

          Or - Facebook owned mostly by Mark Zuckerberg.

          After yesterday's news about the Ceglia case and the way Zuckerberg has been diluting his share, if he ends up with 16%, he'll end up with far less than that.

          I'm waiting for what follows Facebook, thanks.

          • NOOOOOOO. We don't need another Facebook*. D:

            * That's not "another Facebook" as in "another social site." I mean "another social site that has no serious competitors, gives halfhearted attempts at protecting privacy, and has their fuggin like button everywhere on the web."
        • by JamesP (688957)

          FaceBank?!

          Oh, besides, i'm thinking PayPal has everything for it to become a bank, instead of Facebook becoming a bank

          Yes, PP is 'evil' but at least it knows how to do money wires properly (as opposed to most banks). And don't charge ridiculous fees.

      • by thsths (31372)

        > "FaceBook. The bank that Likes you."

        Facebook - the first bank you don't want to trust, but you have to.

      • by acedotcom (998378)
        in 2015....facebook likes YOU!
  • Banks who give out accounts should require a little more detail before handing out money.
  • by Hognoxious (631665) on Wednesday April 13, 2011 @08:05AM (#35806514) Homepage Journal

    More like Mental International, if he thinks anyone believes bullshit like that.

  • by Chrisq (894406) on Wednesday April 13, 2011 @08:06AM (#35806522)

    People who don't have a Facebook account should get one or risk having a financial profile created for them says founder and president of Metal International, Ken Rutkowski.

    If that's true its a crap bank. Can you imagine Bank of America, Barclays, or BNP Paribas saying "if you don't have an account already you better open one or someone else might do it in your name and build up a financial profile in your name"? If they are going to be a bank they should do some level of customer checking.

    • This. If a bank is that lax with privacy/security policy, everyone responsible belongs in a federal PMITA prison.
    • by migla (1099771)

      Can you imagine Bank of America, Barclays, or BNP Paribas saying "if you don't have an account already you better open one or someone else might do it in your name and build up a financial profile in your name"?

      Heh. Actually, I would personally be unlikely to loose with such a setup, but for anyone with income or any wealth, that sure would seem like a bad bank.

      • by migla (1099771)

        (sorry, forgot to quote the first paragraph from the parent)

      • by Dunbal (464142) *

        Can you imagine Bank of America, Barclays, or BNP Paribas saying "if you don't have an account already you better open one or someone else might do it in your name and build up a financial profile in your name"?

        There's an old saying in the business world: Money talks, bullshit walks. Keep your "profile" for what it's worth (nothing), I will keep the cash.

      • by cayenne8 (626475)
        Heh. Actually, I would personally be unlikely to lose with such a setup, but for anyone with income or any wealth, that sure would seem like a bad bank.

        There, fixed that for you.

  • by Lord Lode (1290856) on Wednesday April 13, 2011 @08:06AM (#35806524)

    Did I read this article correctly or did it say "they" will be using your FarmVille credits as a measure of your worth? What if you don't play FV?

    • by timeOday (582209)
      That's like saying only gold miners could use gold coins as currency.
    • by hitmark (640295)

      iirc,facebook have introduced a token/credit system of their own that all games are supposed to support.

      next step will be to make those tokens able to work both ways, so you can both buy and sell them inside facebook.

  • by halo_2_rocks (805685) on Wednesday April 13, 2011 @08:06AM (#35806526)
    LOL - You know there is an "new" internet bubble when they start saying Facebook credits are going to be worth more than the money you have in the bank. Hmmm - I wonder where we've heard this before?!?
  • by gstoddart (321705) on Wednesday April 13, 2011 @08:11AM (#35806582) Homepage

    I find this article to be somewhat lacking on credibility.

    This is some guy who claims to have invented "Web 3.0" telling us that traditional banks will be creating Facebook profiles on our behalf to track our credit rating? Based on what?

    âoeWhy is its important to have a profile? They are going to start using that to determine what your credit worthiness is.â

    âoeBy the way, if you donâ(TM)t have a profile they will make one for you so itâ(TM)s better for you to create it and manage it then them. Thatâ(TM)s why you want to be selective with what you put on there. If you have kids that are being idiots online make sure you stop them right away as they are creating a pretty negative profile long term and it happens often.â

    This is some marketing idiot who is trying to push an idea.

    I'm sorry, but this stupid article doesn't do anything to make me want to get a *(&%^&*$^ Facebook account. In fact, it reinforces the perception that Facebook is overhyped, with everybody thinking it's the most significant thing to ever happen.

    Biggest bank by 2015? Mandatory Facebook accounts? What drivel. Someone needs to give this guys a smack.

    • by turing_m (1030530) on Wednesday April 13, 2011 @08:17AM (#35806686)

      This is some guy who claims to have invented "Web 3.0"

      That's - that's good. That's good. Unless, of course, somebody comes up with Web 4.0. Then this guy's in trouble, huh?

      • by gstoddart (321705) on Wednesday April 13, 2011 @08:26AM (#35806812) Homepage

        That's - that's good. That's good. Unless, of course, somebody comes up with Web 4.0. Then this guy's in trouble, huh?

        He can call it "Web pi*r^2" for all I fucking care.

        If he's stupid enough to be envisioning a world in which Facebook is a bank and that it becomes mandatory that I have a profile otherwise a "real" bank (you know, one that's regulated and covered by banking laws) won't have anything to do with me ... well, then he's been smoking something which is likely illegal.

        This is one of those random internet prognostications put forth by someone who is trying to sell this to people, not by someone who has insight into what is going to happen. This is a marketing statement, and is therefore worthy of a kick in the nuts, and not much else.

      • by msauve (701917)
        "Unless, of course, somebody comes up with Web 4.0."

        My Internet goes to 11.0!
        • by Gordonjcp (186804)

          I'm using Web 2.4TDi which is a bit slower but much cheaper to run, and a lot simpler to work on.

      • No no no not 4.0! I said 3.0! Nobody's coming up with 4.0! Who can surf in 4.0?

        3 is the key number. Think about it! Three's a company. Three's a magic number The holy Threee-nity!
        Step into my office!

      • by gsslay (807818)

        Thanks for nothing, buddy. You've just totally ruined my plot for world domination by inventing Web 3.1.

        Why is there always one flaw in the plan you don't anticipate?

    • by swb (14022)

      Doesn't the whole negative Facebook profile issue go away when it becomes normative?

      Party pictures, outrageous statements, etc -- it's not like people haven't been doing and saying those things forever. It seems shocking when the first group of people to do it more or less en masse get noticed, but after a while, doesn't it just stop becoming an issue of concern?

      • Every new generation thinks they are the first to do something, even if it's been done by previous generations for decades.

        College kids will still think it's funny to get drunk and post pictures, uneducated will continue to make stupid illogical statements that will be made fun of, and it will all be pretty new to that generation.

    • I'm pretty sure this guy has had more than enough smack.
    • I predict the day Facebook introduces a bank is the day people stop using it.

      It's one thing to have friends of friends commenting on your dumb photos or status updates, but having those same people one click/exploit/phish away from your bank account? Even the most security clueless of Facebook users are going to feel uncomfortable about that.

      • by geekoid (135745)

        I predict the day Facebook is used by moms is the day people stop using it.
        I predict the day Facebook introduces a mobile app is the day people stop using it.
        I predict the day Facebook allows videos is the day people stop using it.

        and so on. I have heard so many ways facebook will die. It's not going away, too many user who are general everyday users, it's becomes integrated, and it is incredible useful.

        • by gsslay (807818)
          Oh I agree, it's incredibly useful. LOL! You have to watch this! Click here [scam.me] to see a funny video and share your bank account details. 18 of your friends Like this video,
      • you're right, but the interesting thing is I bet they don't know why they feel uncomfortable.

      • by delinear (991444)
        It kind of depends how they pitch it. Sure if they say "give us your money and we'll open an account" people might steer clear. If, on the other hand, they say "Free Farmville credits for all... you just need to set up an account for us to pay them into" they'll likely get a few people take it up.
    • He asked Eric Schmidt at a conference, "What are you doing about Web 3.0 ?", and Schmidt replied something like "I think you're the inventor of this term"

      Well I have a PLAN to ONE UP this little dipshit. I'm gonna ask the FUCKING POPE, hey Palpatine, what are your thoughts on lolcat-olicism ? And he'll be like, "Dude. You just made that up. How d'you get past security btw ?"

      Then I can start my new RELIGION with cool business cards that go like :

      LOLCAT-OLICISM
      (Bros, the Pope says that name was revealed to me

  • by migla (1099771)

    Facebook bank? Anxiety attack. A thought that leaps to mind is that we can't have the clowns that run this world running this world. We need to kindly but firmly revolt against the wealth- and power-elites and organize human life on this planet right, decentralized and without hierarchies, IMO.

    • by geekoid (135745)

      OR maybe you need to calm down and figure out WTF they are talking about?

      You need to get out of your echo chamber. OTOH, anyone who condiers Bill Hicks on of their favorite peple is clearly not a thinker. While he is absolutely hilarious, his statements are pretty ignorant of fact, or worse; they ignore facts intentionally to be funny.

      Vonnegut was a loon who thought conspiracies run the world.

  • WTF? This guy says they are going to be a bank and the currency will be for playing games? And if you don't volunteer your information they will just create a profile for you anyway? What fucked up kind of bank is that? I don't do business with bank of america and I am pretty sure there are rules against them just commandeering my financial info and making me an account against my will.

    This cocksucker is essentially saying facebook is going to own us all
    like niggers on a plantation. Don't want to sharecrop

  • by wcrowe (94389) on Wednesday April 13, 2011 @08:21AM (#35806736)

    "Also, I invented the question mark", Rutkowski added.

     

  • by geekmux (1040042) on Wednesday April 13, 2011 @08:23AM (#35806772)

    "...People who don't have a Facebook account should get one or risk having a financial profile created for them says founder and president of Metal International, Ken Rutkowski."

    OK, who the hell is THIS guy to say that we all "need" to get a Farcebook account?!? Give me a break, real banks can barely manage real money, and yet we expect a social networking site to somehow manage it...better? Gee, I can't wait until my paycheck comes in the form of Farmville credits.

    God knows how the hell you would ever trust Fuckbook to handle real money with their privacy policies that change with the wind. Oops, sorry, we didn't mean to reveal your checkbook transactions to friends of friends of friends, but didn't you get that memo?(Office Space)

    I'm expecting Obama to call up Zuckerberg asking for a bailout soon...

  • Real Estate (Score:5, Insightful)

    by Wiarumas (919682) on Wednesday April 13, 2011 @08:23AM (#35806778)
    In other news, Facebook will be the largest realtor by 2020. Better sign up and purchase a Facebook mortgage or else you might miss the bubble pop.
  • what the fuck is that ? i have a goodly amount of people in my facebook list, yet i havent seen a single one of them buy something from facebook, its 3rd party interests or each other.

    i guess a suit is inventing a new buzzword to shake the fools' money in wall street.
  • Will facebook still be around in 4 years? I half expected something else to have majority share by then

  • Ha! (Score:3, Interesting)

    by Capt James McCarthy (860294) on Wednesday April 13, 2011 @08:26AM (#35806808) Journal

    I just created Web 4.0, it's all magic. The cloud is gone in Web 4.0. It has become a fog. Go to the fog. It will really obscure your view of anything real.

    Wonder if I'll get funding?

    As for the article, what a load of BS. These social sites only have value because eyeballs are watching them and nothing more. Once the eyeballs go away, so does their value. Much like a highly watched TV show. When it's hot actors and the stations get $$$$. Once it jumps the shark, they get canceled. For if anything holds true, Facebook too will jump the shark one day.

    • by gstoddart (321705)

      I just created Web 4.0

      Yeah, well I'm envisioning "Web 11.0", the last word in the internet ... it'll be better, stronger, and faster ... with more boobies than ever before ... and a new minty fresh taste.

      Phear me, bitches. ;-)

  • by Dcnjoe60 (682885) on Wednesday April 13, 2011 @08:27AM (#35806826)

    I have a few questions....

    1) If Facebook is becomes the biggest bank, does that mean they will be considered too big to fail and have to be bailed out when they do fail?
    2) Will Facebook have to comply with all banking regulations both in the States and abroad?
    3) If not #2, then won't this allow Facebook to be the new money laundering scheme of the this decade?

  • How may years ago was it that Myspace was the big deal? Less than four I believe. And before that, there was Geocities, and AOL. Facebook may well going the same way eventually.
    • by Macrat (638047)

      How may years ago was it that Myspace was the big deal? Less than four I believe. And before that, there was Geocities, and AOL. Facebook may well going the same way eventually.

      It will never be as big as Orkutt!!!

  • This article was nothing more than verbal diarrhea by yet another self-appointed "expert" (interchangeable with "consultant" or "analyst".)

    Biggest bank? Errr... no. That would be BNP Paribas, with $36B in capital and $3T in assets. While I could see Facebook setting up some kind of money transfer service (ala PayPal), that's a very long stretch from being an actual bank

    And what is this crap about credit ratings based on non-existent facebook profiles? Web 3.0? An organization that "launches" 1,000 comp

  • The empty suit. Seems to be exactly what is needed for this story.
  • by rlp (11898) on Wednesday April 13, 2011 @08:37AM (#35806958)

    Facebook to apply for TARP funds from the Obama administration. :-)

  • XKCD (Score:4, Informative)

    by Sechr Nibw (1278786) on Wednesday April 13, 2011 @08:39AM (#35806982)
    I can't believe this hasn't been posted yet...
    http://xkcd.com/605/ [xkcd.com]
    • by gstoddart (321705)

      I can't believe this hasn't been posted yet...
      http://xkcd.com/605/ [xkcd.com]

      I think the guy who does xkcd should do a graph showing the probability of an xkcd link as a function of the number of comments in a story on Slashdot.

      I'm betting by about 60 comments it's a mathematical certainty that someone has linked to it. ;-)

  • Ken Rutkowski should spend some of his Farmville credits on something resembling intelligence. What a piece of trash of an article.
  • will not take place.

    seen too many hypes of things to be the next big thing.

  • The increase in clouds (from cloud computing) will cool down the planet and we will have a new ice age.

  • FARP (Score:4, Funny)

    by darien.train (1752510) on Wednesday April 13, 2011 @08:56AM (#35807226) Journal
    If Facebook ever gets a bailout humanity officially becomes a doomed race.
  • I put $.25 in on monday, $.50 on tuesday, $1.00 today. I will be a billionaire before the middle of next month, and by June, my savings will be on par with the Worlds 2010 GDP. If I new it was that easy, I would have started saving months ago.

    Farmville, one of the attributed credit sources, wasn't sufficient to hold the interest of my 9 year old for any length of time. I hear its really popular with meth heads, so maybe he meant "Facebook will corner the market on meth-heads by 2015"?

  • "Screwed by the USA and it's Mortgage Racket" counts.

  • by gatkinso (15975)

    This is they kind of guy who would pay $10,000 for a nice lakeside cabin in Second Life.

  • by PPH (736903)

    I already have a 'financial profile'. Through the traditional banks and brokers that I do business with. If there's some implication that Facebook will create one for me in the absence of my utilizing their services, then they will be committing fraud.

    From TFA:

    Facebook is already doing deals with the banks for credit profiles.

    I have no financial relationship with Facebook. If my bank or credit card company hands them any details of my financial status then my banker goes to prison.

    By the way, if you don't have a profile they will make one for you so it's better for you to create it and manage it then them. That's why you want to be selective with what you put on there.

    On the other hand, I can see some smart con artists creating multiple personalities on Faceb

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