Google cashing in on “Cache”-a New Checking Account

By:  |  Category: Blog, Government Entities, Security Wednesday, November 13th, 2019  |  No Comments
Gogle Cache

Google, in an effort to follow the money is hot on the heels of Apple and Facebook in developing their own financial system —Apple launched a new credit card with Goldman Sachs in August and Facebook is currently pitching Libra, a new cryptocurrency.  In the same vein, Google will offer checking accounts in 2020 with a project playfully nicknamed “Cache.”

“Everyone wants the payment to happen through their device, because if it’s effortless it will entrench you in their ecosystem,” says Gerard du Toit, banking consultant at Bain.

Now Google is not a bank and they won’t actually orchestrate the financial structure — Citigroup and a credit union at Stanford University will be responsible for the accounts and significant branding. But, there will be an intermingling between Google and the accounts, raising some concerns among regulators.

Google is adamant that it won’t sell account holders’ financial data. This move is meant to be a value-add for users, retail and the banks themselves with services like loyalty programs.

The Wall Street Journal, in a discussion with Google’s representative Caesar Sengupta suggested this move is a way to further digitize the banking world. “If we can help more people do more stuff in a digital way… it’s good for the internet and good for us,” he said.

While Google’s intentions may be good, it’s up for debate how regulators will perceive the move. Banking accounts are highly regulated and include extremely sensitive information, so governments may be leary that Google isn’t snooping on user’s data, exposing it to security risks or misusing it to maintain its internet reign.

Facebook is already in the hot seat for their financial plans with Libra and it’s likely that Google will encounter the same resistance. Add in the ongoing antitrust investigations and the onus will be on Google to prove this actually adds value, not harms their customers by compromising their privacy.

Sources: Wall Street Journal, Engadget

https://www.cnbc.com/2019/11/13/googles-checking-account-is-setting-up-a-showdown-with-apple.html

Image Source: https://www.pexels.com/photo/black-samsung-tablet-display-google-browser-on-screen-218717/

Samantha Keller
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