Sunday , September 27 2020

Google is reportedly offering checking accounts next year


Google will offer checking accounts next year, according to a source familiar with the company's plans, the boldest move of high technology yet in business consumer banking as most have focused on credit cards and payment platforms.

Project accounts will be managed by Citigroup and Stanford Federal Credit Union. The Wall Street Journal first reported the offer.

As part of a project called Cash, the company will become the latest Silicon Valley leader to try its hand at banking. Earlier attempts by Apple and Facebook have faced hurdles, with consumers increasingly skeptical of providing their personal information to major tech companies.

Google does not intend to sell its customer data, said Cesar Sengupta, chief executive of the firm.

"If we can help more people do more digital things over the internet, that's good for the Internet and good for us," Sengupa said.

Apple's offer has been in trouble. Her partnership with Goldman Sachs has been strained after Apple announced it had created the card without the help of a bank. There have also been complaints recently that the algorithm used to determine customer credit limits is biased towards men.

Facebook's digital currency forum has noted that major financial backers have given up on regulatory issues.

Google's plans are to brand checking accounts with the names of financial institutions, not their own.

– Reported by Johnnie Meloy

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