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Web 2.0 Finance

If you’re active online, chances are you’ve heard a lot about Web 2.0. As buzzwords go, this one is approaching superstar status. It’s currently riding a wave of hype that should propel it to a spot alongside “e-commerce” and “e-business” in the annals of Internet history. When a new concept generates this much buzz, its definition can easily morph as numerous parties weigh in with their thoughts. This has certainly been the case with Web 2.0.

I’m not interested in arriving at a precise definition for Web 2.0. I would rather focus on two of the defining principles identified by Tim O’Reilly, President and CEO of O’Reilly Media – the firm that introduced the term at an industry conference in 2004. These principles are:

- Trusting users as co-developers
- Harnessing collective intelligence

The Web applications cited by TIME Magazine in its 2006 Person of the Year story certainly align with these principles. Community and collaboration are integral components of websites such as Wikipedia, YouTube, MySpace, and Flickr. Notably, the TIME article did not mention any Web apps for financial services. Are we to assume that financial services do not lend themselves to these particular principles?

I don’t think so. They may not enjoy as many users as Wikipedia or YouTube, but Web 2.0 applications for financial services do exist. Jim Bruene, founder and editor of Online Banking Report, recently blogged about the top 25 Web 2.0 financial sites.

The list includes loan sites Zopa and Prosper, personal finance sites DimeWise and iOWEYOU, investment sites BullPoo and FeelingBullish, and real estate sites Homethinking and Zillow. It’s a great launching pad for exploring the future of Web-based financial services. Jim even provides links to previous coverage of some of these sites.

Which of these have the greatest staying-power? Only time will tell.

Posted by Nelson T. on December 24, 2006 10:10 AM

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