Google Checking Accounts
Google is planning to offer checking accounts next year as it partners with financial institutions including Citigroup. The tech giant has already tried several finance product, but mostly focusing on credit cards and payment platforms.
The new project is code-named Cache. Google plans to make the accounts available free of charge, in partnership with Citibank and Stanford Federal Credit Union and plans to generate revenues from debit card transaction fees.
Google’s motivation per WSJ appears to be seeking out and attracting younger and more digital-savvy customers who are increasingly looking to handle more of their lives through online tools.
Google stands to gain a lot of valuable information and insight on customer behavior with access to their checking account. Google says it intends to offer product advantages for both consumers and banks, including things like loyalty programs.
But, Google exec Caesar Sengupta said that the company won’t “sell” users’ financial data. That’s clearly a response to customers being wary of big companies such as Google, Facebook and others that already have tons of private data on their customers.