More Facebook Friends Could Lead to Better Bank Rates

From The Huffington Post:

The only thing stopping banks from putting your Facebook page into your credit file is the law. But even that line is growing blurrier.

One new bank says it will offer better rates to those with more Facebook friends.

“[It is about] trying to convert the value of your network,” said Brett King, founder of the Internet-only MovenBank, which will open its virtual doors in July. MovenBank customers who have strong Facebook pages — who have more friends and show frequent activity — will qualify for better rates or offers, he said.

MovenBank’s strategy is a new social take on an old practice, rewarding customers for bringing in new business. Likewise, customers at MovenBank will benefit when they help the bank find new customers via Facebook. “It’s perfectly legal,” King said.

The MovenBank promotion is about as far as banks are legally permitted to go with Facebook, for now. Consumer credit regulations, so far, have prevented banks from applying Facebook data in a meaningful way to lending or financial decision making.

Continue reading the rest of the story on The Huffington Post