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Fidor - The Bank That Uses Facebook Likes to Calculate Interest

ripple.com

Brace yourself, UK. As of the end of last week, the German bank Fidor has arrived on British shores. What makes this 'digital bank' stand out is that account holders can improve their interest rates by liking the Bank's Facebook page. According to Fidor, every time they rake in 2000 fresh likes, the overall interest percentage improves by 0.05%. Each individual customer can also increase their personal savings rate from 0.25% to 0.5% by liking the page.

How exactly they're able to do this isn't immediately clear, but Fidor's interest and savings rates aren't at anywhere near the level to compete with juggernauts like Lloyds and Santander, so it doesn't really matter. Fidor aren't advertising a service that offers competitive rates, but rather one that uses social media to create a community-based service which prioritises customer relations above all else.

In that vein, they're also bringing something called 'community karma' over from Germany. If you take the silly name out of the equation, it's essentially just an in-depth online forum which allows customers to communicate regularly with the bank and each other. The key difference is that Fidor are actually offering financial rewards to customers who are more active on the service. In particular, rewards seem to be going out to customers who find mistakes, during the trial period a £5 reward was extended to anyone who found a spelling error on the bank's site.

Optimising banking using social media isn't unheard of by any stretch of the imagination, but Fidor are perhaps the first banking service to have based their entire ethos around it from the ground up. A big part of their motivation in doing this is to attract more tech-savvy customers, they're likely particularly interested in millennials. Recent events have imbued much of the world with a far deeper mistrust of banks, so one which doesn't have branches and not only values, but rewards customer input is going to be a very attractive prospect.

Fidor currently has 100,000 German customers and is aiming to have 50,000 British customers by 2018. Currently their service is limited to one type of current account which only transfers to other bank accounts and mobile numbers, but they claim to be working on a savings package which will also incorporate Facebook likes into its structure.


Callum Davies

Callum is a film school graduate who is now making a name for himself as a journalist and content writer. His vices include flat whites and 90s hip-hop. Follow him @CallumAtSMF

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Fidor - The Bank That Uses Facebook Likes to Calculate Interest Reviewed by Callum Davies on Monday, September 21, 2015 Rating: 5

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