Gartner Blog Network

FSNs as Technology Vendors

by Kristin Moyer  |  January 13, 2009  |  2 Comments

Stessa Cohen and Kristin Moyer here.  Financial social networks (FSNs) have been struggling of late, as evidenced by things like regulatory challenges, the exit of Zopa from the US market and others.  At the same time, banks have been struggling to incorporate Web 2.0 and social computing strategies into the fabric of their business model.  Meanwhile, a new breed of social computing vendor has emerged in retail banking:  social computing vendors.  These vendors provide social computing applications and widgets built expressly for banks, and often look more like blogs or social networks.

Banks could find their way into social computing by partnering with FSNs as social computing vendors.  For example, SmartyPig is a social computing vendor partners with other banks, which then provides the actual bank account and servicing.  Wesabe is already partnering with the Telegraph (UK) newspaper.  FSNs (for example, Prosper, Lending Club and others) could find their way out of regulatory challenges by partnering with banks and providing financial services applications and widgets.

Banks may be more receptive to this idea than they have been in the past, particularly given an understanding of the need to adopt social computing and a financial market that provides few growth opportunities.

Don’t be surprised if, in the near future, you log into your account and see the logo of a previously-focused FSN that is now partnered with your bank as a technology vendor.

Additional Resources

Category: customer  

Tags: banking-and-investment-services  fsns  lending-club  mint  p2p  p2p-lending  prosper  smartypig  social-computing-vendors  

Kristin R. Moyer
Research Vice President
14 years at Gartner
more than 20 years IT industry

Kristin Moyer is a Research Vice President in Industry Advisory Services/Banking and Investment Services. She has more than 20 years of experience across the global high-technology industry in a variety of roles. Ms. Moyer's research coverage includes… Read Full Bio

Thoughts on FSNs as Technology Vendors

  1. […] CircleLending: How Should Banks Respond, Social Lending will Challenge Bank Customer Relationships, FSNs as Technology Providers, I Just Put all my Money into Prosper, Is This your Approach to P2P Lending?  Bad Idea.  In […]

  2. I think social media and the banking sector we made for each other. We all remember the list of storied brands, rich with history who all collapsed by making the wrong decisions in the dark, so that when everything came to light…they had no brand capital(trust) left with there comsumer.

    Here is an example of how The Royal Bank of Canada understands the importance of engaging clients with transparency.

    RBC -80,000 employees
    18 million personal, business, public sector and institutional clients
    Offices in Canada, the U.S. and 52 other countries
    Over 5 million clients enrolled in RBC Royal Bank Online Banking



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