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Next in Googles Quest for Consumer Dominance — Banking

1 min read
https://tech.slashdot.org/story/19/11/13/139258/next-in-googles-quest-for-consumer-dominance----banking

Google will soon offer checking accounts to consumers,
becoming the latest Silicon Valley heavyweight to push into finance. The Wall Street Journal:
The project, code-named Cache, is expected to launch next year with accounts run by Citigroup and a credit union at Stanford University, a tiny lender in Google’s backyard. Big tech companies see financial services as a way to get closer to users and glean valuable data. Apple introduced a credit card this summer. Amazon.com has talked to banks about offering checking accounts. Facebook is working on a digital currency it hopes will upend global payments. Their ambitions could challenge incumbent financial-services firms, which fear losing their primacy and customers. They are also likely to stoke a reaction in Washington, where regulators are already investigating whether large technology companies have too much clout.

The tie-ups between banking and technology have sometimes been fraught. Apple irked its credit-card partner, Goldman Sachs Group, by running ads that said the card was “designed by Apple, not a bank.” Major financial companies dropped out of Facebook’s crypto project after a regulatory backlash. Google’s approach seems designed to make allies, rather than enemies, in both camps. The financial institutions’ brands, not Google’s, will be front-and-center on the accounts, an executive told The Wall Street Journal. And Google will leave the financial plumbing and compliance to the banks — activities it couldn’t do without a license anyway.

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