Barclays Goes Social

Are you ready to design the credit card of your dreams? Well, Barclays is bringing the power to the people. According to the Washington Post, Barclays is launching the Barlcaycard Ring Mastercard, and they want their customers to tell them how it should be done.

The plan is to use social media to crowdsource the card’s major features, gathering input and opinions on everything from call center locations to late fee amounts. It’s all part of a big push to rebuild trust among increasingly distrustful (and often frustrated) consumers who are tired of being slaves to what they see as big banks just out to make a buck.

This olive branch couldn’t come at a better time, in fact. According to the Post article, a Gallup poll from the summer of 2011 showed that 36 percent of Americans lacked confidence in banks and less than a quarter of those surveyed viewed banks in a positive light. Ouch.

So how is Barclays going to woo customers? Instead of a traditional rewards program, the Ring MasterCard boasts an 8 percent interest rate for all balances (which is well below the average). Late fees will be capped at $25. And they even plan on disclosing how much they make off the card and possibly kicking back some of that cash to customers.

Barclays envisions holding votes on customer issues and card features once or twice a year, enabling cardholders to voice preferences, air complaints and decide whether or not they’d like a change made, such as higher interest rates in return for lower late fees. This power-to-the-people approach is definitely part of a larger trend in banking, as the old guard and start-ups alike look to build a more customer-friendly image and tap into the power of social media. Like Movenbank in New York City, they’re actually counting on your social media activity to influence things like interest rates and fee structures.

It’s an enticing concept, but not one we’re sure will totally work. Call us skeptical, but we find it hard to believe that big banks won’t just always go for the higher profit margin in the end.

SOURCES:

http://www.washingtonpost.com/business/economy/social-credit-card-from-barclays-lets-users-set-terms/2012/03/06/gIQAdcScxR_story.html

http://www.investoruprising.com/author.asp?section_id=1483&doc_id=238699

http://www.bizjournals.com/washington/morning_call/2012/03/barclays-jumps-into-social-space-with.html

PHOTO CREDIT:

http://apninews.com/en/2011/08/06/barclays-complete-three-years-in-pakistan/