Rogers applies for banking license

Can you imagine signing a three year contract for a credit card? With Rogers recently applying for a bank license, telco companies entering the bank sector is becoming a very vivid reality. If so, what is stopping Facebook from joining the rush for the pot of gold at the end of the rainbow? Venessa Miemis, an external blogger for a global community of innovation, highlights the possibility that social networks could be next on the Minister of Finance’s waitlist. With banking as the new battleground, it is useful to question why telco companies are vying for the money in your wallet and if other large organizations will follow suit. Rogers strives to capitalize on the spread of financial transactions being completed over mobile phone and providing credit and payment services seems to be a logical launch pad. In fact, it seems to be what every company is trying to accomplish as “every year Canadians make more than $40-trillion of transactions and that generates huge profits for the handful of banks and financial firms that operate the payment system”. Venessa Miemis suggests that social networks are quite similar to telcos in her blog, meaning Facebook or Twitter could be next in asking you to apply for a credit card. Although the question lies in whether customers will be attracted to the financial services that Rogers could provide with the many options offered by other companies (Airmiles anyone?). The general consensus appears to be wariness of the corporate giant. The company with an average of four hours for waiting on hold for customer service is offering a credit card? Where do I sign up?

Gazze, M. (2011, September 06).Rogers wants to start a bank, could bring mobile               payment to mainstream. Retrieved from http://www.canadianbusiness.com/article/43486- -rogers-wants-to-start-bank-could-bring-mobile-payment-to-mainstream

Greenwood, J. (2011, September 07).Rogers one of ‘a dozen’ seeking bank post. Retrieved from http://business.financialpost.com/2011/09/07/rogers-one-of-a-dozen-seeking-banking-licence/

Miemis, V. (2011, September 09).Telcos becomes bank-facebook next?. Retrieved from http://www.innovationexcellence.com/blog/2011/09/09/telcos-become-banks-facebook-next/

Sturgeon, J. (2011, September 06).Rogers applies to open bank. Retrieved from     http://business.financialpost.com/2011/09/06/rogers-applies-to-open-bank/