The Bank of Google: Google to Offer Customers Checking Accounts in 2020
So, what happens if tech companies one day “rule the world?” First Apple Pay, then about two months ago the headlines were filled with Facebook Libra. Now, we have Google Checking Accounts. Google is currently dominating the search engine market but the search giant wants more. As part of its ambition to get into the financial lives of its users, Google announced today its partnering with Citigroup Inc. and a California credit union to offer customers checking accounts, according to a report from CNET.
As part of the venture, Google will let users access their bank accounts through the Google Pay app beginning next year, according another report from Bloomberg, citing people familiar with the matter. It was also reported that other banks could join up later. As part of the agreement, the checking accounts will be run by Citigroup and a credit union at Stanford University. Google also confirmed in a statement today.
“We’re exploring how we can partner with banks and credit unions in the U.S. to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools,” Google said in an emailed statement, adding that the accounts will carry federally guaranteed insurance.
So, how is it going work? Consumers will access their Google checking accounts through Google Pay, the company’s digital wallet. The tech giant hasn’t decided whether checking accounts will charge a fee, Sengupta told the Journal. He added that Google won’t sell checking-account users’ financial data and that the company doesn’t use or share Google Pay data for advertising.
“Our approach is going to be to partner deeply with banks and the financial system,” Google’s Caesar Sengupta told The Wall Street Journal, which earlier reported on the company’s plans. He added that it may be a longer path, but Google viewed it as “more sustainable.”