Financial Services (105)
Credit for the crowd
The new Barclaycard Ring Mastercard is the world’s first ‘social credit card’, designed through its user community. The simple low-rate card combines social media, online banking and financial education tools to create a credit card managed and optimized through its user community, where its profits and losses as a card are made public.
Why it matters
Barclaycard applies extreme transparency to what is typically a highly guarded category. The card depends on a single behavioural principle - the better users are about paying their bill, the more the card profits. The card’s Giveback programme lets users have a portion of the earnings as thanks for their participation. How can murkier categories like finance start using this type of high-transparency model as a means of creating consumer trust? What are other behavioural-driven solutions like this one can create consumer investment not only in the brand, but also in its profitability?
O2 together with NatWest are launching a chip and pin card for children as young as 13. While the Load and Go card will not allow any overdrafts, it allows children to shop online at outlets that take Visa and withdraw cash from ATMs. Parents can then receive transaction details.
German economic scientists have set up an online platform called ‘TweetTrader’ that helps analyze stock and market information provided by tweets on Twitter. It aims at predicting market outcomes by using textual analysis filters and specific algorithms.