Google is the latest tech giant to make a move into banking and financial services starting in 2020. The biggest search engine is gearing up to offer accounts to consumers, as first reported by The Wall Street Journal.
The tech giant is calling the project ‘Cache‘. It will partner with banks and credit unions to offer the checking accounts. Banks will handle all financial and compliance activities related to the accounts.
Google’s Caesar Sengupta spoke to the WSJ about the new initiative. He made it clear that Google will be seeking to put its institution partners much more front-and-center for its customers than other tech companies have perhaps done with their financial products.
Apple works with Goldman Sachs on its Apple Card credit product, for instance. But the credit card is definitely presented primarily as an Apple product.
Related:
Apple’s Card is being called Sexist in the US and It has No Defense
Google obviously stands to gain a lot of valuable information and insight on customer behavior. With access to their checking account, which for many is a good picture of overall day-to-day financial life.
The tech giant also intends to offer product advantages for both consumers and banks, including loyalty programs.
However, Google already offers Google Pay. Its Google Wallet product has hosted some features beyond simple payments tracking, including the ability to send money between individuals.
Meanwhile, rivals, including Apple, have also introduced payment products. Apple of course recently expanded into the credit market with Apple Card.
Facebook also introduced its own digital payment product earlier this week. Furthermore, earlier this year Facebook also announced its intent to build its own digital currency called “Libra”.
Related:
Libra effect: Facebook’s cryptocurrency turns heads at EU
Moreover, the initial financial partners that Google is working with include Citigroup and Stanford Federal Credit Union.
Foraying into banking in 2020, Google is going to attract younger and more digital-savvy customers. Millennials increasingly looking to handle more of their lives through online tools will be the tech giant’s core target group.
Google Joins New Banking Race, Stressing Bitcoin’s Importance – “Every tech company wants to be a bank, and eventually, a central bank.”
— Bob Moneybags ⚡ (@FakeCoinExpert) November 13, 2019
“Bitcoin and gold have never been more important in monetary history.” https://t.co/4yEzQHs29H
