Citi Taps Social Media for Feedback on Facebook Banking: 5 Things to Know for the Week

Simon Zhen

Updated on Tue Jul 17, 2012

With Facebook being the go-to destination for many online users, Citi shows a weak sign that it may offer banking directly through the site. The idea is already in practice in India. Could Citi, one of the country’s largest banks, start a new trend in the industry?

  • Last week’s breach of a Yahoo database left hundreds of thousands of user emails and passwords compromised. A slew of major companies, including Google, Amazon, LinkedIn and Twitter have automatically reset the passwords of users that had emails connected to this breach — banks did not do this. Because many users also use similar passwords for their online banking, affected users should also take the initiative to change their login credentials for their financial accounts.
  • Some HSBC customers in upstate New York will begin to see KeyBank signage at their old branches after KeyBank began its conversion process over the weekend. Customers will be able to conduct all their banking and online banking as usual. Some credit card customers will undergo a similar transition in September.
  • In a social-media update that could spur the consumer rumor mill, Citi posted this question on Twitter and Facebook: “If you could do your #banking on #Facebook – Would you?” It may be a playful way to gather feedback and see if there is demand for the ability to bank on the world’s most popular social network. Citibank already has a rewards-sharing app on Facebook — the bank could be considering banking functionality too.
  • A settlement between Visa, MasterCard and a group of retailers may negatively impact credit-card users in the near future. It calls for reduced interchange fees — paid by merchants to card issuers — and the right for merchants to impose surcharges for using credit cards. As these changes takes effect, consumer may resort to other payment methods to circumvent new costs.
  • On Tuesday and Wednesday, Federal Reserve Chairman Ben Bernanke will deliver a testimony before Congress regarding the economic progress in the first half of 2012. The discussion, which takes place semi-annually, is expected to cover interest rates, unemployment, quantitative easing, inflation, consumer spending and more — the topics that are often included in the central bank’s board meetings.

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