Tech Giant Google Gets into Banking Following Apple, Facebook Pay & Crypto Project “Libra”
- Google with Citigroup to offer checking accounts from next year, following other tech heavyweights Apple and Facebook
- Once they get in, it’s going to be “virtually impossible” to extract them out – Sen. Mark Warner
- Google: Our approach might be “longer” but is “more sustainable”
Alphabet Inc.’s Google will start offering checking accounts to consumers sometime next year, becoming the latest technology giant to push into banking and finance.
The project named Cache, created in partnership with Citigroup Inc and a small credit union at Stanford University is following in the footsteps of tech heavyweights Apple and Facebook that moved into the financial industry this year.
Google just announced it's getting into banking.
Apple, Amazon, Facebook, Uber and now Google are all going to be offering different financial services for users.
If only there was a neutral protocol they could all adopt. 🤔
— Rhythm (@Rhythmtrader) November 13, 2019
It’s going to be Virtually Impossible to Extract Tech Giants
Facebook’s plan to launch the stablecoin “Libra” has met with skepticism from regulators all over the world, concerned with money laundering and security of user data. Another concern is how the big tech companies' will use their massive digital influence in the banking industry.
Democratic Sen. Mar Warner, a leading voice on regulating tech companies told CNBC,
“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.”
“Because once they get in, the ability to extract them out is going to virtually impossible,”
said Warner, who himself was a tech entrepreneur before getting into politics. He served as the governor of Virginia from 2002 to 2006.
Google: Our Approach might be “Longer” but is “more Sustainable”
Meanwhile, Google wants to help more people do more stuff digitally online.
“Our approach is going to be to partner deeply with banks and the financial system,”
said Caesar Sengupta, general manager and vice-president of payments at Google.
“It may be the slightly longer path, but it’s more sustainable,” Sengupta was quoted as saying.
The news came on the back of the social media giant launching a unified service Facebook Pay, separate from Libra project, through which users can make payments without exiting the app.
On this development, Jake Chervinksy, General Counsel at Compound Finance commented, “Facebook Pay sounds an awful lot like an admission that Libra is dead in the water.”