Google will offer chequing accounts

Google will offer chequing accounts

Google will offer chequing accounts

The project, in partnership with Citigroup and code-named Cache, is expected to launch next year.

Google is unveiling a new product: checking accounts. But just because Google isn't selling the data doesn't mean it isn't collecting and examining it.

"I think there ought to be very strict scrutiny", he added.

Google is just the latest tech giant to get into financial services. Apple recently partnered with Goldman Sachs to launch its own credit card. Earlier this month it was reported that JPMorgan Chase was moving to bolster its valuable wholesale payments business by building an e-wallet that lets e-commerce and gig economy firms such as Amazon and Airbnb offer their customers virtual bank accounts. Caesar Sengupta, a GM & VP of Payments at Google, spoke to the WSJ and he made it clear that Google will be putting its partners much more out in front.

However, Google insists that it will not sell users' financial data, and that it does not use data from its existing Google Pay service for advertising purposes.

One of the people said Google partnered with Citigroup in part because the lender has spent the last year building out its digital banking arm, an effort that has helped the bank gather more than $4 billion in deposits this year.

But how far Google will have to go to reassure a wary public that it can be trusted with what is arguably their most intimate information - money and health - is open to question.

Financial regulators in NY state have said that they are investigating the allegations.

"High-tech companies are experts at data exploitation and monetization", said Dennis Kelleher, president of Better Markets, which generally pushes for tighter banking regulation.

These partnerships have been enabled by the rise of startups such as UK-founded company Token, which act as the link between banking institutions and consumer-facing firms (EQT is an investor in Token). "I'm looking at the transaction data and thinking about how I can monetise that without getting regulators all over them", says Maule.

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