Facebook, with all the data they are collecting about you, your interests, your social “klout”, etc. could soon make the role of your bank manager redundant. And they have been trying to wedge into the financial services for a while now. Back in April, we surfaced a story about how Facebook is entering the remittances market and is planning to allow its users to store money on Facebook and use it to pay and exchange money with others. “Facebook wants to become a utility in the developing world, and remittances are a gateway drug to financial inclusion.”
Where Facebook goes, can Google be far behind?
However, Silicon Valley tech firms with their “move fast and break things” motto may be ill suited to meet the fiduciary standards set by regulators to protect investors. Apple sending out a flawed update to new iPhones is a minor irritation, screwing up somebody’s retirement account is a big deal.
It will be interesting to see how this plays out.