Google is taking a new step into banking and here’s what we know

Google one of the largest tech companies is now also moving into banking and personal financial services. Google will be offering checking bank account details to consumers starting next year. This new project by Google will be called Cache and it will be collaborating with banks and credit unions to provide new checking accounts to users and the banks will be handling all sorts of financial activities related to these accounts.

Why is Google getting into this game?

Google’s new project is expected to provide services in collaboration with different bank partners. If the majority of the activities will be handling the traditional financial way then why bother providing this service at all? Well if you take a deep insight into this new project, Google will be gaining very valuable information and insight on the behavior of customers with access to the checking accounts of users. According to WSJ, Google will also be offering some product benefits to consumers and banks along with financial services.

Google is already offering some products like Google Pay and Google Wallet which have features beyond just simple financial transfers including the services of sending money between different individuals. Along with Google, rivals including Apple also introduced new payment products to its users and Facebook also launched its own digital payment product and its own digital currency named Libra as well.

Partners of Google

The financial partners that Google is working with from the initial stage include Citigroup and Stanford Federal Credit Union and according to these partners, they aim to attract the youth and the customers with more knowledge of the digital world and are looking for new ways to handle their lives through various online tools. According to the report, Google will be benefiting from large sets of data provided by consumers and will be turning those into valuable products but along with that, Google denies any allegations of use of Google Pay data for any sort of advertising. Google also states that it never shares user data to advertisers and is still trying out different ways to convince its users to give Google access to their financial data even though access to this potentially sensitive info might security of users at stake especially when the market is rising with so many data breaches.

Bottom Line

Google is one of the largest tech platforms that aim to bring ease in the life of its users in all the ways possible. We all want our lives to managed by simple online tools but also afraid about the illegal use of our data if accessed by third parties. Even though the market is full of different service providers like Apple and Facebook attempting to provide its users various ways of digital payments but this new project by Google is something that can bring more comfort in the life of internet users and the standard financial methods used by banks is something that will provide more security to our data as compared to other tech companies.

Photo: VCG via Getty Images

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