The search engine giant is all set to provide checking accounts in 2020. This latest move marks the boldest venture Google is yet to make in the consumer banking segment. As part of the tech giant's project named Cache, Google will provide checking accounts under the umbrella of Citigroup and the credit union of Stanford University.
This latest ambitious project, first reported by the Wall Street Journal, is one of the long lists of financial projects Google has pursued. In 2011, the company's first entry in the financial world was marked by Google Wallet, which offered users the facility to send and receive money to each other. But, Google Wallet failed to gain traction until the search engine giant introduced Google Pay.
This time Google introduced an online payment system and a digital wallet platform that provides tap to pay and in-app purchases on Android devices. At present, the service has countless users all over the world and maintains strong popularity in various regions, especially in India. In Dec. 2018, the search engine giant got the Lithuanian e-money license that enabled it to offer digital wallets and process payments all over the European Union.
The tech giant also got another authorization from the central bank of Ireland under the psd2 o the Second Payment Services Directive. This achievement comes as Alphabet; the parent company of Google creates crucial inroads in the healthcare segment. Google entered a new cloud computing collaboration with Ascension, a US health provider.
Over the years, traditional banks have raised their concerns about competition from fintech startups. But, it seems that tech giants, already equipped with connections to countless consumers, may prove to be a more powerful threat. Several reports a year ago claimed that Amazon has been talking to JP Morgan on account of a checking account service to customers.
Apple also launched the Apple Card earlier this year and collaborated with Goldman Sachs. Moreover, Uber has announced its drive into the financial services segment while Facebook introduced a service to process payments across social media and messaging systems. The social media giant also introduced its own cryptocurrency known as Libra.
Some Privacy groups are troubled with this kind of development. Google, along with other Silicon Valley giants, already possess massive data troves of their uses. There is nothing wrong with tech giants venturing into the retail financial sector. The only issue is when these tech giants have repeatedly failed to be responsible custodians of the wealth of consumer data, which is usually the case.
