The multinational technology giant Google has plans to get into the banking industry according to multiple reports that reveal the firm intends to work with Stanford Federal Credit Union and Citigroup. However, analysts assert that Google is not jumping into banking for revenue purposes and the move is simply an acquisition of more customer data.
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Google Bank
One of the ‘Big Four’ technology companies, Google LLC, plans to launch checking accounts through a partnership with Citigroup, Stanford Federal Credit Union, and a number of other financial partners. The secret project has a code name called ‘Cache,’ according to sources stemming from the Wall Street Journal. However, people using the Google-backed checking accounts might not know the internet-related services company is behind the financial products. The checking accounts will still feature branding from the likes of financial incumbents such as Citibank and Google will only work behind the scenes. Google executive Caesar Sengupta explained:
Our approach is going to be to partner deeply with banks and the financial system — It may be the slightly longer path, but it’s more sustainable.
The move by Google follows the recent partnership between Apple and Goldman Sachs that produced the Apple Card product. Many speculators believe Google is planning to enter the fray of banking in order to stay competitive with the other three heavyweights Facebook, Amazon, and Apple. In a note to clients this week, Wells Fargo’s analyst Brian Fitzgerald said that Google is more interested in obtaining data. “Google is likely entering into these partnerships to increase its insights into consumer purchase behavior and consumer finances more broadly,” Fitzgerald said. At the moment,
