Google is the last major technology company to go into banking and personal financial services: The company is in the process of offering consumer checking accounts, as first reported by the Wall Street Journal, starting as early as next time year. Google calls the projected "Cache" and it will partner with banks and credit unions to provide checking accounts, with banks handling all financial and compliance activities related to the accounts.
Google's Caesar Sengupta talked to WSJ about the new initiative, and Sengupta made it clear that Google will seek to put its financial institution partners much more front-and-center for its customers than other technology companies may have done with their financial products. For example, Apple works with Goldman Sachs on its Apple Card credit product, but the credit card is definitely pretending to be an Apple product.
So why not bother getting into this game if it leaves much of the actual bank to traditional financial institutions? Well, Google will obviously provide a lot of valuable information and insights on customer behavior with access to their checking account, which for many is a good picture of overall financial life. Google says it also intends to offer product benefits to both consumers and banks, including things like loyalty programs, on top of basic financial services. It is still considered whether it will charge service charge per Segupta or not ̵
Google already offers Google Pay, and the Google Wallet product has some features beyond simple payment tracking, including the ability to send money between individuals. Meanwhile, rivals including Apple have also introduced payment products, and Apple has of course recently expanded into the credit market with the Apple Card. Facebook also introduced its own digital payment product earlier this week, and earlier this year announced its intention to build its own digital currency called & # 39; Libra & # 39; with partners.
The first financial partners that Google works with include Citigroup and Stanford Federal Credit Union, and their motivation per the WSJ piece seems to be looking for and attracting younger and more digital savvy customers who increasingly want to Handle more of life through electronic tools. Per Sengupta's comments, they will also take advantage of Google's ability to work with large datasets and turn them into value-adding products, but the Google CEO also said the tech company doesn't sue Google Pay data for advertising, nor share data with advertisers . Still, convincing people to give Google access to this potentially sensitive area of their lives can be an uphill battle, especially given the current political and social climate surrounding big tech.