Google plans to offer consumers checking accounts starting next year as it partners with financial institutions, including Citigroup ( C ) and a credit union at Stanford University. This represents Big Tech’s boldest move yet into consumer banking.
“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,” a Google spokesman said in a statement. “We look forward to sharing more details in the coming months.”
Google will then become the latest Silicon Valley leader to try its hand at the banking space after Apple and Facebook. The company is attempting to deepen its relationship with consumers by entering into finance. But will consumers accept this or be skeptical about providing large technology companies with their personal information?
Is Google becoming a bank? Will it be successful? And should banks be worried?