Google turning into your bank and will offer checking accounts

Google, in its new project code-named Cache, will work on the system hosting accounts bearing brands of the financial institutions handling security and regulatory compliance issues. The search engine plans to launch to check account service by next year collaborating with Citigroup and credit union in Silicon Valley. In its press release, the company said, "it is going to be to collaborate deeply with banks and the financial system" in what might be seen as a longer but safer route."


Currently, Apple and Google offer digital wallets to users on a Smartphone for instant digital payment options. Recently, Apple released credit card and Amazon reportedly in talks with banks to create checking account service. Facebook, on the other hand, is building up e-commerce tools at the social network making it easier to send and receive money using WhatsApp.


Libra, Facebook's digital wallet is to build a global payment system rather than a currency.

Google's Caesar Sengupta while speaking to WSJ, made it clear that Google would be seeking to put its financial institution collaborates much more front-and-centre for its customers than other tech companies have perhaps done with their financial product.


Reason to go with Checking Accounts-

By collaborating with financial institutions, Google stands to gain a lot of valuable information on customer behaviour using checking account. Furthermore, Google says it also intends to offer product advantages for consumers and banks. Also, it is considering whether to charge service fees or not.


Google already offers Google Pay as wallet product for faster and simpler payment tracking systems. According to Sengupta, financial companies will benefit from Google’s ability to work with large sets of data and turn those into value-add products.

However, lawmakers in Washington are investigating the dominance of tech companies Google's move closely. The effort from Google draws scrutiny from the lawmakers.


Jaret Seiberg, an analyst at Cowen and Company, said in an analyst note.

"We have trouble seeing how combining the two is going to produce an outcome that either Democrats or Republicans will embrace."