Powered by MOMENTUM MEDIA
subscribe to our newsletter

Facebook to enter finance space

The social media giant has announced plans to expand into the finance arena by launching a new global blockchain-powered currency.

Facebook has unveiled plans to launch a financial services subsidiary, Calibra, which will utilise a blockchain-powered platform to enable users to engage in financial services activities a new global cryptocurrency network called libra.

The first offering to be powered by the Calibra platform, which will officially launch in 2020, will be a digital wallet embedded in Messenger, WhatsApp and a stand-alone app, to facilitate libra transactions.

In a statement, Facebook claimed that the new offering will help remove barriers hindering access to financial services across the world.  

“For many people around the world, even basic financial services are still out of reach: almost half of the adults in the world don’t have an active bank account and those numbers are worse in developing countries and even worse for women,” Facebook noted.

Advertisement
Advertisement

“The cost of that exclusion is high – approximately 70 per cent of small businesses in developing countries lack access to credit and $25 billion is lost by migrants every year through remittance fees.

“This is the challenge we’re hoping to address with Calibra, a new digital wallet that you’ll be able to use to save, send and spend libra.”

Facebook also intends to expand into other services, including the facilitation of bill payments and the purchasing of retail products.

There are also reports that Facebook has plans to enter the lending space with its new Calibra platform, but such reports are yet to be confirmed.   

Facebook has assured prospective users of the new platform that it is committed to protecting their privacy and security.

PROMOTED CONTENT


“When it launches, Calibra will have strong protections in place to keep your money and your information safe,” the social media giant added.

“We’ll be using all the same verification and anti-fraud processes that banks and credit cards use, and we’ll have automated systems that will proactively monitor activity to detect and prevent fraudulent behaviour.

“We’ll also offer dedicated live support to help if you lose your phone or your password and if someone fraudulently gains access to your account and you lose some Libra as a result, we’ll offer you a refund.”

Facebook asserted that Calibra would not share account information or financial data with its parent company or any third party without customer consent.

“This means Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook family of products,” the company noted.

“The limited cases where this data may be shared reflect our need to keep people safe, comply with the law and provide basic functionality to the people who use Calibra.”

The social media giant said that it would be consulting with a wide range of stakeholders to ensure the Calibra platform is safe and accessible prior to the launch.

[Related: Bank expands commercial footprint in Australia]

Facebook to enter finance space
Facebook
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Home ownership costs jumped by 130 per cent over two generations, with Gen X spending a quarter of their income servicing their loan, accord...

Fintech lender Tic:Toc has secured $25 billion of additional funding for the next seven years, after extending a partnership with Bendigo an...

The non-bank lender has closed its first RMBS deal under the Bluestone Prime program, worth $700 million. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.