This can easily be described as Google’s boldest ever move, when it comes to consumer banking.
For the first time ever, Google will offer checking accounts for all users, in partnership with CITI Bnak.
Although Google has attempted to enter payments space, with offerings on credit cards and payment platforms, but this can be their biggest move into hardcore banking space.
Google Partners With Citi Bank
The project has been code-named as Cache, wherein, they will partner with Citi Bank, and offer full fledged banking services to their users.
Google’s Google Pay app would be the foundation, based on which this new service would be offered: Users would be able to access smart budgeting tools and analytics, which will help them to plan their finances in a better way.
A Google spokesperson confirmed this, as he said, “We’re exploring how we can partner with banks and credit unions in the US to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools, while keeping their money in an FDIC or NCUA-insured account,”
To start with, the service would be offered for their American users, and banking backbone would be powered by Citi Bank.
Data Privacy Issues?
Some analysts are indeed worried over data privacy issues, especially now, after Google’s Project Nightingale created chaos all over the US.
Tech observers were worried that under Project Nightingale, Google is collecting health data of millions of Americans.
Google has denied any such allegations, and have assured that the health data is safe.
Commenting on Google’s Project Cache for entering into banking niche, Sen. Mark Warner, D-Va., a leading voice on regulating tech companies said, “I’m concerned when we got, whether it’s libra or the Google proposal, … these giant tech platforms entering into new fields before there are some regulatory rules of the road.”
We will keep you updated, as more details come in.