Will Millennials Go For Cashback Sharing?

What are millennials supposed to like? Sunglasses, traveling and experiences. What are they not supposed to like? Banks — but not if GlobeOne has anything to say about it.

GlobeOne, the self-professed “first ever truly global social banking community,” is expected to go live by the end of 2015, Bank Innovation reported. However, more important are the features that GlobeOne is describing will be available to all accountholders, namely SocialBoost — a cashback service that will share all proceeds equally among all GlobeOne users.

Speaking to Payment Week, GlobeOne CEO Les Riedl explained how SocialBoost is (and has to be) more complex than your average cashback rewards program.

“Through SocialBoost, GlobeOne’s Member Banks return 50 percent of interest charges to the GlobeOne community; 25 percent to the GlobeOne Individual members (based on the people they have directly invited to join GlobeOne and who have become members), and 25 percent to the global community members,” Riedl said. “GlobeOne Individual Members can increase their SocialBoost income by growing their personal community. As Individual Members build their personal community, their share of the SocialBoost income grows.”

GlobeOne is currently scheduled to launch in the U.S., Mexico and Vietnam, but Riedl wants to be in at least 30 countries by 2020. In February, GlobeOne announced that it had joined the Center for Financial Services Innovation Network, a consortium of banks and other organizations focused on improving financial literacy.

“At GlobeOne, we are committed to breaking down financial barriers and offering everyone access to simple, affordable financial tools regardless of where they live or how much they make,” GlobeOne CMO Michael Wolper said in a statement. “Joining CFSI’s network represents a significant step that will support our progress toward that goal.”

Social solutions have rarely been bandied about as fixes for the financial sector, but if GlobeOne and SocialBoost can win over enough young savers, it might just spark a trend.

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