Google is getting into banking with the search giant set to offer checking accounts next year

CNBC | Jeff Cox | Nov 13, 2019

big tech unable to self regulate - Google is getting into banking with the search giant set to offer checking accounts next yearKey Points

  • Google plans to offer checking accounts next year.

  • The project, code-named Cache, will be run in conjunction with Citigroup and the Stanford Federal Credit Union.

Google will offer checking accounts next year, according to a source familiar with the company’s plans, representing Big Tech’s boldest move yet into the consumer banking business.

Most previous efforts have focused on credit cards and payment platforms.

The accounts for the project will be run by Citigroup and the Stanford Federal Credit Union, the source said, confirming a report in The Wall Street Journal.

As part of a project code-named Cache, the company will become the latest Silicon Valley leader to try its hand at the banking space. Previous attempts by Apple and Facebook faced obstacles, with consumers growing increasingly skeptical over providing large technology companies with their personal information.

Google does not intend to sell customers’ data, Caesar Sengupta, an executive at the firm, told the Journal.

“If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us,” Sengupta said.

For years, banks had been concerned about competition from small, nimble fintech upstarts. But it turns out that Big Tech companies like Google and Amazon, already armed with relationships with hundreds of millions of consumers, may prove to be the larger threat.

See:

 

Last year, Amazon had reportedly been in talks with J.P. Morgan over a checking account. Apple launched a credit card for iPhone users earlier this year with Goldman Sachs. Uber announced its push into financial services last month, and just Tuesday Facebook announced a new system to facilitate payments across its social media and messaging systems.

Apple’s offering has run into multiple issues. Its partnership with Goldman has been tense after Apple said it created the card without help from a bank. Also, complaints have arisen recently that the algorithm used to determine customers’ credit limits is biased toward men.

Facebook’s foray into digital currency saw major financial backers drop out over regulatory concerns.

Sen. Mark Warner, D-Va., a leading voice on regulating tech companies on Capitol Hill, told CNBC’s “Squawk Box”  on Wednesday,

“I’m concerned when we got, whether it’s libra or the Google proposal, ... these giant tech platforms entering into new fields before there are some regulatory rules of the road.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - Google is getting into banking with the search giant set to offer checking accounts next year The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Google is getting into banking with the search giant set to offer checking accounts next yearFF Logo 400 v3 - Google is getting into banking with the search giant set to offer checking accounts next yearcommunity social impact - Google is getting into banking with the search giant set to offer checking accounts next year
NCFA Newsletter subscribe600 - Google is getting into banking with the search giant set to offer checking accounts next year

NCFA Fintech Confidential Issue 2 FINAL COVER - Google is getting into banking with the search giant set to offer checking accounts next year