Banks compete for savings customers on website??
Dutch banks are competing against each other for savings customers via auctions on a new website.
The Spaarbod website’s free offering to consumers means that, instead of researching which bank offers the highest interest rate, they put their money up for auction, getting banks to bid on their savings. Nine banks are currently taking part in the scheme, which launched on Saturday March 14.
Customers enter the amount of money they want to deposit, for how long and on what terms. The site calculates the best rates and offers the user the chance to sign up.
However, they can also opt to have their data sent on to participating banks, which can bid for the business. Within a day the user receives an e-mail listing the five highest bidders and can pick the best offer.
The service is free for customers, with banks paying a commission for every bid that leads to a savings deposit.
The Bank2You website offers a similar service, also in Holland, and is currently being tested prior to a planned launch later this month.
The idea follows the same model as the US-based popular MoneyAisle, launched in the US last June, which has generated over US$100m in certificate of deposit (CD) and high-yield savings deposits for banks across the US in Q4 2008.