Would You Do Your Banking On Facebook?

By: Chris Crum - July 14, 2012

Can you imagine a world where all of your financial transactions are going through the same account as all of your photos, status updates, videos, game playing, and music discovery? Facebook certainly can, and that looks to be the goal the company is trying to achieve. It’s been obvious for a while that Facebook will make a major push in payments, but it doesn’t end there. Facebook is reportedly looking to get into the banking business.

Would you ever do your banking with your Facebook account? Let us know in the comments.

According to a report from CNN Money, the company has been talking to banks about offering solutions that would allow bank customers to do their banking and engage with their banks using their Facebook accounts. Lauren Barack reports:

“There are certain things, whether itʼs financial services, or banking where I donʼt necessarily want my friends to know exactly what Iʼm doing, right?” David Robinson, Facebook’s director of global marketing solutions, U.S. financial services, asked a crowded room of bankers at a Securities Industries and Financial Markets Association (SIFMA) seminar in New York late last month. “I want to be able to go in and have an experience with my advisor or my bank and have that be a one-on-one experience.”

Facebook is quietly planning just such an offering with Australia’s Commonwealth Bank. Currently in an internal beta, with the first version built in March, the application is expected to launch sometime this year to customers. It will allow Facebook users who are bank customers to make payments to third parties as well as Facebook friends through the social media channel, according to the bank. Commonwealth will secure transactions with its own authentication system — similar to how payments are secured on its online and mobile banking site, a spokesperson says.

Even without bank partnerships, Facebook is already looking to provide some banking-type services of its own. Much like PayPal, Facebook users can keep real money in their accounts. It seems like only a matter of time until it becomes an accepted form of payment at businesses around the world.

Last month, the company made a very significant announcement, when it revealed that it would ditch Facebook Credits (historically used to pay for virtual goods within Facebook app) in favor of real, native currencies (Dollars, Pounds, Yen, etc.).

The company didn’t reveal any specific plans to offer payments for goods and services in the physical world, but the move clearly puts Facebook in a position to compete more directly with PayPal (which you can use to pay at places like Starbucks, by the way).

Over 900 million people have Facebook accounts, which are easily accessible via mobile phones, in users’ pockets at most times of the day. If Facebook can convince users to keep their money tied to their Facebook accounts, the company could have a tremendous advantage in the payments space, particularly since users are already spending so much time interacting with content with those accounts.

Facebook obviously has a major hurdle to climb before the majority of users start putting their money into their Facebook accounts, or doing any banking with them. The company doesn’t exactly have the greatest reputation when it comes to user privacy, and that’s a major problem when you’re talking about money.

It’s one thing put your status updates on the site, upload some photos, and share what music you’re listening to on Spotify. It’s another to trust the creators of “frictionless sharing” with your finances and associated information.

At least Robinson made a point to mention that there are things (like banking) he doesn’t want his friends to know about. It sounds like Facebook would at least offer the appearance of a privacy net around any banking endeavors, but getting users to put that much trust into the company who had to be regulated by the FTC for privacy-related issues, may be no easy task.

Of course, the same thing could be said of a major competitor.

Do you trust Facebook enough to keep your money in your Facebook account? Would you ever consider banking with Facebook? Let us know in the comments.

About the Author

Chris CrumChris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow Chris on Twitter, on StumbleUpon, on Pinterest and/or on Google: +Chris Crum.

View all posts by Chris Crum
  • http://www.sfpincchicago.com Gregory L. Dennis

    Absolutely not.

  • sofakingdabest

    No.

    Facebook reminds of businesses that have a lot of cash and want to diversify. The result is the core business’s working capital gets sucked up by the new aquisitions and the core gets neglected.

    I wanna know how fast FB burns through the IPO cash.

  • http://www.racingmodels.com Wim Wellinghoff

    Facebook must have gone out of their mind……

  • http://www.comparehris.cocm D. Scroggin

    No, I would not do banking on Facebook. I think that’s just a big disaster waiting to happen!

  • Jim

    Fuck no!

  • Dannoman

    No way would I do banking on facebook. I only do on there what I would shout on the street corner. Sorry FB, no way.

  • http://www.myaffiliateblaster.com Ricky

    Not no, but H*@# NO!

  • Glen

    Paypal is bad enough with their abusive practices so FB would be a definite no no!

  • Jeff B.

    Not only no, but if they do it, I will be off of facebook so fast it would make their heads spin. Maybe facebook could buy Netflix, that way everyone can leave at once.

  • Robin Green

    never!

  • http://UKEcommerce.com UK Ecommerce

    No, I dont believe that our data is safe on Facebook as it is, never mind Bank details….

  • Ally

    yes

  • Linda Roth

    Hell, NO!!!!

  • http://webdesignjustforyou.com Eileen Forte

    Never. Facebook borders on revealing too much as it is! It’s just the feeling of wanting to keep some things separate and private, and FB certainly does not lend itself to that!

    • http://www.bedfan.com Bed fan

      As the founder of FB said, People are stupid to put private information on their system.

  • Susan Harris

    I don’t think it is a wise choice to give FB more info than it already has. Only trusted websites such as your financial institution should be the only source you use for you banking. Too many hackers and fingers in the pot stir up trouble I think.

  • ima

    Good Lord NO.

  • Mike T

    One would have to be a complete idiot to do their banking on Facebook, so yes, I think it will be wildly successful.

  • http://speedoflightenterprsises.com Max Keele

    Kidding, right? Can you even imagine FB marketing geniuses at work?

    Joe Smith likes Porn. He spent $255 at Husler online!
    Mary Jones likes Bankruptcy Lawyers of America!
    Steve Anderson likes Paying His Mortgage Late!

    Does ANYBODY really think these clowns are trustworthy enough to handle their bank accounts? Really?

  • http://www.blissful-savings.com Stacy

    Exactly what they said. Heck no. I already here of peoples accounts getting hacked all the time now. What do you think will happen if theres banking. Alot of peoples money will be stolen from hackers. Don’t Think so ever!!!

  • Daniel Mahoney

    Not only no, but hell no!

  • http://www.ssrichardmontgomery.com ron

    They must be totally mad to even suggest it, as would anybody using the service. Facebook is for silly trivial family and friends information links and sometimes stupid photographs not a serious thing like banking, or money transfer where a third party getting your details no matter how secure they say it is could cost you dearly in more ways than one. close friends and family also know very personal details about you which in a dispute could be used to cause you big financial and other problems by contacting the bank pretending to be you. Although this would be a felony punishable by imprisonment it is amazing what lengths an allegedly wronged ex partner or work mate will go to. Keep banking separate from your public life or live to regret it.

  • http://www.bedfan.com Bedfan

    Why not just go ahead and setup an NSA bank or a bank that is run by the CIA..

  • Howard

    NO !! Facebook is bad enough already. Why would I want to use it more ?

  • C Whitehorn

    I absolutely would not do banking on Facebook! Right now I bank with a small regional bank which has existed only in my area for more than 100 years, with no scandals, no failures, no bailouts, and a high rating.
    I won’t do business with BofA, Chase, or Citi either.
    I really believe that keeping money local instead of overseas contributes to the good of the community, and while I go on Facebook to see pictures and updates on my grandchildren, I would never give them my money.

  • Atomic

    This doesn’t require any thought at all: hell no. PayPal is bad enough. Facebooks privacy settings are already somewhat annoying already. Depending on one website to connect your whole world together seems dangerous.

  • Bobby

    Not only No, but Hell No! I do admire Facebook for wanting to know just how many stupid sheep there are in this country though. Not too far off from the FBI wanting to scan personal computers for a virus to protect everyone.

  • http://www.rwrinnovations.com Ron Nixon

    No.

    The same answer I get everytime I ask individuals and business people if they would still use Facbook if they had pay for their account.

  • http://www.mycashforums.com matthew

    no I would not do my banking on FB

  • Recovering FB user

    Are you insane? We all know Zuckerberg’s attitude to privacy. Banking and Facebook, think about it.

  • http://privatemoneyexchange.com/esmith Elliott

    Will never happen!!

  • Ernest Marx

    never

  • Chris 54

    No.

    And, any bank that would partner with them, I’d pull my money out of in a second.

  • rj

    under NO circumstances

  • http://christianityetc.org Bob Sherbondy

    I’m not ready to trust Facebook to handle my banking transactions.

  • Danielle

    I wouldn’t use Facebook for any banking needs. I think it will be major a target for hackers and they will end up having serious security issues.

  • http://beercityguide.com Carl Donovan

    No way in hell!

  • http://www.hawaiifunplanner.com Leslie Heltzen

    Not on your life.

  • http://rsMallory.com RS Mallory

    No, NO and then again, NOOOOOOOOOOOOOOOOOOOO

  • http://rsMallory.com RS Mallory

    No, NO and then again, NOOOOOOOOOOOOOO

  • Chuck

    Not only no, BUT HELL NO !!!

    Facebook is the least secure site on the internet and they published my unlisted & unpublished phone number when I had to prove who I was because they blocked me out of my account.

    The reason they blocked me was because I asked a friend of a friend to be my friend and they reported me before my friend could tell them I was a friend of theirs. So now if I make a purchase from someone that isn’t on their approved list are they going to close my account and steal my money?

    Facebook can, will, and has eliminated accounts without any warning. How can they expect me or anyone else to give them banking information knowing they will just publish it for the entire world to see?

  • Muhammad jaafar

    We suport facebook banking since paypal is not accessible in some countries

  • http://www.loveshade.org Alden Loveshade

    Let’s see; I’ve read many articles about problems Facebook has had with security and with information being spread to outside sources. Doing banking with them? Sure. I publicize my personal financial information everywhere:

    SSN: 566-52-4984
    Sanderson Bank Savings Account no: 005482846
    Sanderson Bank Checking Account no: 005434091
    Birthdate: 02/29/1975
    Address: 1313 Maple Ave., Sanderson, CA 90283
    Hours I’m away from home: Monday through Friday, 7:30 a.m. to 5 p.m.
    Safe combination: 36 left, 14 right, 12 left
    Shoe size: 9 1/2

  • Allister

    Uh, no way. I trust my bank’s website, and I trust PayPal. Facebook has only offered me headache and frustration, trying to jam too much into the interface and expose too much of my information to advertisers and other users.

    Banking is a conflict of interest for Facebook, since their goal is to sell data to advertisers. Privacy and security appear to be a complete mystery to the folks at Facebook.

  • http://www.captaincyberzone.com Cap’n Cyberzone

    No!
    I feel safer doing my banking with the drug dealer on the corner of Whatever St.
    (Nor would I do my banking with Google either!).

  • Mike

    Wouldn’t touch it with a barge pole for my banking………however, it could be good as a business to be able to look at a prospective customer’s ability to pay me and make an informed decision whether to do business with them.

  • http://www.adwh.com Dawn

    I don’t trust them with my email address. Why would I trust them with my money or any other financial information?

    I am with Chris 54 on this one; I would not even deal with any banking partners they might acquire.

  • http://sterling-media.us Robert Easterling

    Absofreakinlutely NOT! No explanation necessary on that one…

  • http://joancarrisbooks.com Joan Carris

    Banking online, no. I don’t even like the fact that my own bank is online. Too many folks out there w. more brains than sense.

  • Austin

    Hell NO!!!!

  • StanG

    No

  • J.

    Dear god no! I won’t even trust them with my real name.

  • http://www.wonnacott.org Paul

    Very simply “Not Bloody Likely”.

  • Frank

    Not a fucking chance! I wouldn’t let facebook do anything on my computers – more intrusive than Microsoft.

  • Nobody Important

    A zillion years from now when they ascend off planet earth to that banking heaven in the sky, where gold and silver hold no weight, but honest, integrity, and your will is your own.

  • http://website-in-a-weekend.net/ Dave Doolin

    Don’t be ridiculous.

  • http://www.banishfat.com Wilf Staton

    I cannot believe this. But unfortunately many people who have no sense will take it up just like those you believe those emails telling them they have won a million dollars, Just send us your banking details.

    It will just be another thing for those hackers to get their teeth into.

    I have used internet banking for 6 years and use all appropriate techniques to prevent my info getting out. I never buy anything online using my credit card directly. I, “cross fingers” have never had my bank or credit cards compromised in this time.

    My details and access stay with the me nd the bank and that’s it.

    Why would I want to spread my details by going through another channel.

  • http://www.windows7slow.info Wilf Staton

    Sorry to butt in again but I missed something on my first read through.

    The Commonwealth Bank in my own country seems to be in some sort of beta test with facebook. It would appear that at least one bank doesn’t seem to have any sense either. Must make sure this is broadcasted on all my local blogs.

    Through all the comments so far there is only one accent and that is from a country that does not have paypal. Buddy that is no reason to open up your details world wide through a dodgy third party.

  • http://www.seofreelancer.me Mark Asciak

    No chance!

  • http://www.escortsindex.net Toni

    No way!!! Are you crazy? Facebook founder profile was hacked!!! Who would put their banking data in there? I wouldn’t. In addition to the small detail that, according to the contract you sign to create a profile, all the information you place on Facebook belongs to Facebook.

    • STUPID isnt tatoo’d on my forehead

      LOL!!! If Mark Zuckerburg can’t keep his own account safe…Well, enough said!!
      I think he suffers from “Savior Syndrome” and also want’s to be “Big Brother” watching us all by having all of our information.
      Good luck with that one Facbook Boy.

  • Rafael V. Rabinovich

    Absolutely not! Facebook is not secure enough, I don’t want to risk having hackers breaking into my bank accounts.

  • sue baillie

    NOT A CHANCE….!

  • Bill

    Hell no! Never, ever, ever, eeever…! I’d trust the government with my money before I’d trust Facebook.

  • Rob

    I disabled my Facebook account over privacy issues. There is no way I would ever trust Facebook with financial information.

  • PAul

    NOT A CHANCE IN HELL!
    No way would I trust them with anything like that.

    Next question?

  • Mike Legar

    WHAT??!! I do not even have a Facebook account. But do not take it wrong. I have nothing against Facebook. I may give it a try one of these days. From a distance, without any closer look, Facebook seems tacky. But if it serve a purpose and if they are an honest team all around it may be worthwhile to give a closer look to it. My best wishes to Facebook.

  • http://www.zazzle/artnip KSS

    Absolutely Not. Don’t they have enough of everybody’s information? Until they come up with a privacy policy THEY actually stick with, forget it.

  • http://www.zazzle.com/artnip KSS

    I’m sure they are talking to a lot of banks. Hopefully they’re not talking to mine.

  • http://Mabuzi.com Kevin

    No, why would you trust a data base that makes money out of your personal data without your consent and renumeration?

  • http://darrylmanco.com Darryl Manco

    This is a joke right? Yet, I’m sure that there is a target audience for it.

  • http://atozhealthtopics.blogspot.com/ Sonali

    Ya this is good news for us. I like facebook.

  • Elrae Yelgnib

    NO

  • http://www.website-consultancy.com/ Website Consultancy

    Not a chance!

  • Peter

    Never ever ever ever ever ever Never!

  • http://online-backup.stocklii.com Stocklii Storage

    I don’t think that it may happen one day only because i do not think that there is enough privacy security in FB where many profiles are fake ones and but let’s wait and see!

  • Bill

    Facebook is voluntary submission of your private life details to people who promise to violate your trust in the future. Think of it as youthful indiscretion for the masses. In later life, you’ll all say, I would have, should have, could have avoided Facebook, and been better off today.

  • http://www.q3tech.com Q3

    I think we have given Facebook enough information already. I wouldn’t want to share all my banking details with them too.

  • http://www.IdentiFind.com Lauri Johnson

    Personally I think we already have too much personal financial information floating around online and something that would open us up to more problems with hackers, scams, etc. This is absolutely something I would not participate in! It took a long time for people to accept PayPal, but I still refuse to do any financial transactions on the internet… not even paying bills! I prefer to stick with the tried and true old fashioned way when it comes to my finances!

  • Art

    This must be a bad joke. I have a FB account and use it daily. But FB regularly demonstrates that they do not deserve my trust. If the whole internet were run by a gossipy group of high school girls, it would look like FB. I wouldn’t trust them with my shoe size much less financial info. The only conceivable answer to this question is “HELL NO!”

  • http://www.irislegal.co.uk GM

    Facebook seem to be getting more and more aggressive in their persuit of our personal information under the thin mask of ‘why wouldn’t you want to share everything’? Well, to be honest, I don’t want to share all the personal contacts in my smartphone, and was shocked to find out that when you install FB on your iphone, that’s exactly what it does. So now they have quietly harvested all my phone numbers what would they choose to harvest of my bank account details? Where I’ve bought lunch so they can say GM endorses restraunt X? Or even worse, live status updates everytime I spend money, ‘GM just bought toilet roll in Tesco Lewisham?’

    • STUPID isnt tatoo’d on my forehead

      I totally agree and now they are slowly starting to ask users for their cell phone number to verify their account. They “claim” your number will not be stored or used for any other reason. My brother had to give his cell number just to get into his account. Five minutes later he was being bombarded with texts messages from Facebook.
      Did you also know that that they keep records of ALL of your instant message conversations???
      Very interesting reading: ‘The Boy Kings’ by Author Katherine Losse about life inside Facebook’s social network.
      ■ Their main focus is technology, not it’s users.
      ■ The book mentions that Facebook had a “master password” anyone could use to access a user’s profile, personal messages (IM’s not erased) and all. A revelation that isn’t reassuring from a privacy standpoint.
      ■ Also that third-party developers were “technically” supposed to scrub user data every 24 hours, but they didn’t.
      ■ All of the women at Facebook were asked to wear T-shirts emblazoned with Mark Zuckerberg’s photo, while the men were exempt.
      ■ When meetings end, Mark Zuckerberg would say either ‘domination’ or ‘revolution,’ with a flourish of a fist, and everyone would laugh nervously.

  • http://www.barnettassociates.net/ Toby Barnett

    Oh heavens no. I am still wary of doing mobile banking in the event I loose my phone. Somethings shouldn’t be combined in my opinion unless something in the trust department drastically changes.

  • John

    Never.
    Actually the fuss about facebook is well managed and paid for. And as all things marketed to us it has more bad things, than good, and is just another hungry monopoly to make a money on us… It is next after Microsoft and Google.
    May be it is more dangerous for people than drugs, because it is much more popular, has a similar effect but seems harmless in the beginning…

  • mik

    never would i ever consider putting money with facebook — it is such a deceptive dishonest company — self-serving and hypocritical — YUK !!
    mik

  • STUPID isnt tatoo’d on my forehead

    Bank with Facebook?? Ha! That’s a good laugh!
    They can’t even keep their privacy controls safe within their website. They give you the option to keep your friends list private on your privacy settings, then plaster your name all over the friends of friends pages with your name as a “mutual friend” of one of their friends and ask if you’d like to add them. So basically, your friends list is NOT private at all.
    Secondly, if you do try to add a friend of a friend and that person does not want to add you, they are given the option to click, “I do not know this person in real life” and then your account is banned from sending anymore friend requests for 7-14 days!
    Facebook completely lost my trust in them a long time ago.

  • http://www.bestdiscountpetsupplies.com W H

    Never. . Under the mattress before that happened.

  • my0cents

    People start affairs on facebook..so banking shouldn’t be a big deal to them.

  • Saffie van Dun

    Yes, ofcourse!! I would do my banking on facebook. I’m on facebook everyday. It would be very convenient to do my banking on facebook too. My only concern is: Would you be able to do your banking on facebook and would it stay private? But if privacy is guaranteed, yes ofcourse I would use Facebook to my online banking.

  • http://plutocrazy.info Len

    Would I trust a company that’s already displayed an unwillingness or inability to protect user’s privacy, not to mention will sell users web surfing habits to the highest bidder with my personal finance information? Hell no!

  • http://canlookup.com Rex Mundi

    Trust Facebook with information about my finances, personal or corporate? No way! I won’t even buy advertising on Facebook because of privacy concerns. So no way am I giving them my credit card number, and I wouldn’t dream of giving them the opportunity to peek into my banking transactions. In fact, if I found out my bank even considered entertaining FB as an online banking alternative I’d assume the banks board had been taken over by morons and pull my accounts in a heartbeat. FB long ago gave up any semblance of being a firm to be trusted with anything but limited personal info, so for them to be considering being trusted with financial information is a joke. Sadly a lot of fools will… and I look forward to reading about it or seeing the sad human interest stories on the news, the ones where gullible people lost everything by trusting facebook.

  • http://www.thecollectorshub.com The Collectors Hub

    Absolutely NOT!

    • http://www.morganstjames-author.com Morgan St. James

      Definitely not. I’ve been hacked via Facebook and there is no way I’ll hand over my banking information to that kind of a site. To me, Facebook is a way to connect with friends and an exchange of information. Not a banking solution.

  • Tessa Dick

    there will be ice cream sundaes in hell before I bank on Facebook. they have too many glitches and it’s too easy to get hacked on Facebook

  • paul goin

    Hell NO I would not use facebook for banking That’s just so stupid

  • http://www.bnoticed.com Gregg

    Not a chance… FB cannot be trusted now. No one and I mean no one should do banking on FB! Too much hacking and privacy issues when they do upgrades. All your banking info will end up open to everyone. What a joke!!!

  • Katrina

    I would NEVER do my banking on Facebook. That site immediately takes ownership of any information that you put on there and the privacy settings are a joke. Also in February of 2009: Facebook’s New Terms Of Service: “We Can Do Anything We Want With Your Content. Forever.”

    Also found on http://coupmedia.org/internet/facebook-is-cia-funded-data-mining-project-2910

    Facebook.com has become a One World Global Database under the guise of “social networking” where deluded people put their most personal information OPENLY and VOLUNTARILY…forget using loyalty cards, they can be tracked directly

    Don’t trust any website for anything that is as personal as your banking EVER! Unless it is your own on-line banking website and even then you have to be careful.

    My advise: save the banking to the professionals. Don’t give anything to the people just trying to collect personal information so they can so they can keep tabs on you.

  • http://www.allinterestbooks.co.uk Robin

    Definately not! To deal direct with your own bank is the safest way of handling money.

  • http://www.oasisgrafx.com Nancy

    ABSOLUTELY NO to banking on Facebook!!!!!

  • Glenda

    Facebook is a social medial site, and all of your personal information will be socially shared!!! Nooo thanks!!

  • Glenda

    What ever happened to the stock deal? Didn’t it go bonkers? It would be crazy to do banking with a social media site. You’d be socially sharing your funds too! Talk about legal identity theft. It would be hell just trying to prove your innocence.

  • http://www.saheltech.com Web Developer SF Bay CA

    Seriously! If I do not even trust Facebook to have all my online content hosted in their servers why do you think I will trust them with my hard-earned money.
    Facebook better focus on social media and not try to be to the internet what the black hole at the center is to a galaxy.

  • http://www.probloggingtips.com Blogging Tips

    Not a chance in the world. I would rather bank through my neighbor, and I only know what his name is. :]

  • http://leefe.ratestheworld.com.au/ Leefe

    I agree with the previous comments. Facebook is not the sort of thing I would trust with my banking information.

  • http://tautweb.com/ Taut Web

    Well, absolutely NO! Facebook is a social network, to me, and it will always be.