Banks make money on our deposits, our transactions and lending us money. The economic models for banks are old and subsequently there is little differential from one bank to another.
The customer experience is largely the same and yet bank after bank uses the tag line “relationship banking.” Bank relations do matter just like any organization selling products and services but the dynamics of relationships are changing and we as individuals are becoming our own bank.
What do banks do? They manage relationships, transactions and the more they manage the more they make.
In the on-line world we individually manage relationships, transactions (conversations) and the more we manage the more we learn. Learning is in fact an economy because people take what they learn and create something with it. Study after study shows the more we know (from learning and experience) the more worth we have in our knowledge inventory that can be "used" to make more with and from each other.
What Does Your "Social Bank" Do?
People engage in "communities" which would creates a "digital marketplace" of conversations. The conversations are tagged and categorized by interest and people find answers to common business questions. Answers to these questions represent a "marketplace" which in the end creates an exchange of value which create transactions. You are a bank making and depositing social currency that gets transformed into economic value.
The on-line world is filled with terms and definitions, models and ideas about the creation and trading of a new currency, social currency. Could "currency" be the same as it always has been just transformed into a different medium with different influences?
Social currency is information shared which encourages further social encounters. Money is a currency that pays for an exchange of value between the buyer and supplier. When the buyer is satisfied with their value the natural human reaction is to share the value received with others. Revenue, money, is produced when the exchange for goods and services is propagated by social currency. On the other hand social currency produces a value exchange of information about people and things without an exchange of money. So if "currency
" represents value exchanged then social currency is and has always been the input that influences the output for an exchange of money.
Your "Social Bank" Trades Social Currency
Currency is a medium of exchange and as such as long as a buyer and seller agree on the value of something then the exchange represents a currency, call it social, goodwill or any damn thing you want to...it is an exchange of value.
Our social currency is being traded on-line and off line based on our actions and words. Our “balance sheet” is transparent for anyone to review, analyze and use for their own objectives. Our "social credit score" is a measure of value we propagate, share and create with and for others to use. In addition, our social credit scores are influenced by the social graphs of others we know and associate with, risks can be predicted and mitigated based on what and who we know.
You are a bank. What you deposit can work against you as well as for you. Your deposits can appreciate or depreciate ased on the value of your contributions to the human network.
Social currency favors intangible things--ideas, information, and relationships and turns them into tangible. All of these are intensely interlinked.
These three attributes produce a new type of marketplace and a currency, one that is rooted in an exchange of value rooted in relational attributes that create trust, respect and appreciation.
Communications is what social technology are all about -- it drives all currency. Communication is the economy.
Communications are the foundation of all economic systems. All currency are built on social systems. Social media are communications, the new economy.