Social Media Are Turning Into Banks

Large online-resources (Facebook, Alibaba, Amazon) are quick to take away in the nearest future piece of market of financial services from classic credit financial organizations. The large amount of information they got during the years of their work will help to put this strategy into life. Review the following fact as a proof: in 2015 Facebook started its own payment system, and internet resource Alibaba also in 2015 started its own online bank. Besides, Alibaba company is determined to develop its own service of online payments and the platform for all sorts of investments.
The head of the consulting and audition company PwC International Dennis Nally believes the banking sector can face global changes as the result of activity of internet-sales giants and social media. So, companies that specialize in Internet-sales, for example, Chinese Alibaba and American Amazon, as well as social network Facebook, considering their users data bases, can compete with conventional banks.
Dan Chernavski, co-founder of Bank4you company, shares his opinion that under such conditions it won’t be easy for conventional banks to survive. �Banks will have to change working case model which was used by them for years and, by all means, to implement new technologies that get updated every month�, – Dan Chernavski presumes.
CEO of the biggest Russian bank � Sberbank of Russia � Herman Gref, speaking at the Gaidar forum last week, also predicted gradual extinction of conventional banks, suggesting that in five years in Russia there would be no bank that wouldn’t use digital technologies left.
* Facebook is a corporation and online social networking service headquartered in Menlo Park, California, in the United States. Its website was launched on February 4, 2004, by Mark Zuckerberg with his Harvard College roommates and fellow students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes.The founders had initially limited the website’s membership to Harvard students, but later expanded it to colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities and later to high-school students
Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website, a business-to-business portal to connect Chinese manufacturers with overseas buyers. In 2012, two of Alibaba’s portals handled 1.1 trillion yuan ($170 billion) in sales. Suppliers from other countries are supported (with more stringent checks than for Chinese companies), but the company primarily operates in the People’s Republic of China (PRC). At closing time on the date of its initial public offering (IPO), 19 September 2014, Alibaba’s market value was US$231 billion.[5] However, the stock has traded down and market cap was about $212 billion at the end of December 2015., Inc. often referred to as simply Amazon, is an American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the United States. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization