Google is all set to introduce its new financial product to its users. The tech giant has associated with various financial institutions including Citigroup to launch new ‘Smart Checking’ accounts, which will be available by next year. It is touted to be Google’s boldest initiative in consumer banking. This project has been named ‘Cache’. The new service will be unveiled via Google pay. ‘Smart checking’ account will assist users to add the company’s methodical tools to traditional banking. It will also follow the offerings of credit cards, payment systems, and loans by Uber, Amazon, Facebook, and Apple. Google has also roped in Stanford Federal Credit Union to kick-start its new financial project.
Apple and Amazon had also tried their hands on consumer banking earlier. Due to consumers’ growing skepticism over providing their confidential information to the tech companies, it turned out to be quite difficult for the companies to move ahead. Google aims to provide useful insights and budgeting tools to the consumers while keeping their money in an FDIC or NCUA insured accounts through checking accounts. Considering the severe criticism, the company has received over accessing users’ data illegally; Google has made it clear that it will not sell consumers’ data. The officials of the company said that the new financial product would allow consumers to do more stuff digitally online.
The new financial project offered by Google does not seem to be good news for banks. Several banks have been facing competition from small, financial technology upstarts in recent times. However, with big tech giants like Amazon and Google entering the finance sector with hundreds of millions of consumers can be a large threat. Amazon has also been preparing to launch a financial service like a checking account with JP Morgan. Apple has also introduced a credit card for iPhone users in association with Goldman Sachs. Facebook has recently unveiled its new system to facilitate financial transactions through its messaging app. There were several issues in Facebook’s venture as its major investors backed out over regulatory concerns. The financial offering by Apple also faced multiple issues. Apple has been blamed for being biased towards men while deciding the credit limit of the consumers.