Just when you thought Google had exhausted all possible avenues of growing its technology related businesses, they once again have surprised us. It appears that they are now going to branch out into the banking sector. You are already likely aware that Google has worked hard to integrate many different technology related applications so that modern life is made easier. You probably use many pieces of technology that you are not even aware have been created by Google. Everything is designed to be seamless and works in the background in many cases. Millions around the world, for example, use Google Docs on the computer to share files back and forth. Now, Google wants to bring the same conveniences many users have been enjoying for years to the banking sector. What do you think? Would you allow Google to become your own personal bank? Continue reading to learn more.
What is Google Doing?
Google is essentially branching away from its traditional product line to enter into the world of financing. Namely, banking is about to be their game. They are doing this a bit differently than rival Apple. Google is opting to form a partnership with several major financial institutions in order to create a checking account for its customers. The two main banks that Google will partner with initial are Citigroup and Stanford Federal Credit Union. The project actually has evolved to the point that is already has a codename. That would be Cache. While you cannot yet open a Google checking account, you can expect to be able to do so in the coming year.
Google’s banking product will different from Apple. You might be aware that Apple recently entered into the world of finance by unveiling its credit card. This is a card that is branded internationally with the Apple logo. While they partner with Goldman Sachs, you would not notice that by looking at the card itself. With Google, the checking account will actually be branded as a Citigroup product. Google aims to form a true partnership with banks and to help its customers better benefit from the financial sector and the products that it can offer.
Some Additional Information
Google is not initially worried about offering credit cards. That niche in the market is saturated enough. Instead, it is going to partner with Citigroup and Stanford Federal Credit Union in order to create an attractive checking account. It is due to launch next year and it will function like the Citibank checking account that is currently offered. While specific details about the checking account itself have not yet been unveiled, there are a few things that we have learned from insider knowledge conveyed by various representatives familiar with the project.
Google has essentially been exploring how to offer attractive checking accounts that can work well with Google Pays. This will help Google customers to benefit from many of the budgeting resources and other financial tools that are built into that particular product. To do this, the company is going to partner with a number of banks and credit unions that help make this happen. The money that is placed in the checking account will still be insured by either the FDIC or NCUA. This is a major deal, as customers will want to know that their money is well protected. The electronic nature of the Google Pay system makes it ideal for this type of checking account. We can envision this bank running purely on the Internet and via mobile apps. This is a growing trend and will put Google in good company. The difference is that their checking account will likely contain various features that will be unique to Google. Be able to integrate with all of the other Google suite products, particularly when it comes to payment methods, will be a major selling point. It will be interesting to see what the final details are when they are finally unveiled.
What Are the Banks and Credit Unions Saying?
For their part, Citgroup and Stanford Federal Credit Union have not yet responded to requests for comments on this impending deal. We also do not know if Google will charge any fee for the checking account that it does end up offering. We can assume that it will not if it wants to be competititve with other internet based banking options, but we will have to wait to find out on that one. The aim is likely to get the Google checking account to integrate directly with Google Pay. This will be similar to Apple has done with its credit card that is meant to work with both its iPhone wallet and Apple Pay. That will make it convenient for many users around the world. Google has also expressed that it would be willing to partner with even more banks in the future, so it has obviously thought this new product out quite a bit.
Where is Google Heading?
Many readers might find it interesting that Google is seriously exploring an entry in the banking sector of the economy given how much scrutiny it is currently facing from regulators at both the state and federal levels. This has to do with the potential of various antitrust violations. The Department of Justice and a smattering of state attorney general offices are looking into Google at the present time. In fact, it was just recently that federal regulators began to look into the partnership that Google has formed with Ascension, which is a major player in the hospital system.
For its part, Google obviously does not seem to be concerned. Many of its products are offered for free already. This includes its popular search engine, email service, and maps. Google generates its revenue from advertisements and the data that it generates from user data. Google has already shown that it can be a major player in the world of finance as its Google Pay product is used by millions. If they can integrate this well with its new checking account product, then there is every indication that this will be a success in the end.