Moscow, November 13 — “Lead. Economy” Google is planning the creation accounts in partnership with American Citigroup and Stanford Federal credit Union.
Google will soon offer customers a current account and will be another heavyweight from Silicon valley, who decided to develop in the financial sector. It is expected that the project, code-named Cache will be launched next year, and the accounts will be managed by Citigroup Inc. and a small credit cooperative, Stanford University.
According to The Wall Street Journal, unlike a credit card the Apple, where the Apple brand with a small logo of Goldman Sachs, located on the back of the physical card, Bank account, Google will look and act like a regular checking account at Citibank.
“Our approach is based on full partnerships with banks and the financial system, explained in an interview with the top Manager of Google Caesar Sengupta. — Maybe this way will be slightly longer, but he and more stable”.
According to Sengupta, Google wants to benefit consumers, banks and trading companies with the services, which may include loyalty programs, but it is not going to trade the financial data of the owners of settlement accounts.
The company has experienced growing attention from state and Federal regulators for possible violations of the Antimonopoly legislation, the Ministry of justice and General prosecutors of the state are studying the technology giant. Regulators are studying whether or not the user information that Google receives through search engines, intelligent systems, electronic mail and other applications, gives it an unfair advantage over rivals, as he wrote the WSJ.
Google provides many of its core services — Search, Maps, Gmail and Photos — free in exchange for user data. In contrast to these services, Google says that they will not use the data Google Pay in the same way. According to the company, it does not use the data Pay Google for advertising purposes and do not share them with advertisers.
The question of secure handling of user data is particularly relevant in connection with the recent message that Google has partnered with one of the largest health systems in the United States under a secret project for the collection and analysis of personal health data of millions of Americans in 21 States.
According to the WSJ, the base includes test results, diagnosed, prescribed medications and records of hospitalization, as well as the names and dates of birth of patients. In fact, the search engine 150 working on the project employees have access to full information about people’s health.
However, according to a survey recently conducted by the consulting firm McKinsey & Co., 58% of respondents said that they are ready to trust financial products Google. This figure was better than in the case of Apple and Facebook, but worse than in the case of Amazon.
We will remind, in the summer, Apple introduced its credit card, Amazon is in talks with banks about to also start offering a current account. Facebook is developing a digital currency, which it hopes will change the global payment system. However, cryptocurrency project Libra until faced with a wave of negativity from regulators, who fear the dominance of large technology companies.
Google’s approach seems intended to purchase in both camps of the allies, not enemies. As stated by The Wall Street Journal, one of the leaders, the brands of financial companies, not Google, will be important in the maintenance of customer accounts. All financial transactions and dispute settlement, Google would leave the banks, while the operation she still would not be able to run without the appropriate licenses.
It is unclear whether Google will charge a fee for current accounts. As in the case of the Apple Card that is built directly into the iPhone wallet and Apple Pay, users design Google account will have access to your account through the payment service Google Pay. And the company is open to partnerships with other banks in the future, writes the WSJ.
Juniper Research estimates that in 2020 the number of users of Google Pay $ 100 million to 39 million in 2018. For comparison, Apple Pay last year was about 140 million users.
Citigroup is one of the largest U.S. banks, but he has a lot less branches than at competitors like JPMorgan Chase & Co. Instead, Citigroup is relying on digital services to attract depositors. Deposits are a cheap source of funding, but it is extremely important for how the banks profit.
Anand Selva, head of consumer Bank at Citigroup, said that such partnerships, as with Google, will allow the Bank to develop business outside of the traditional network. “We need to be where our customers,” he said.
Read more •••
Video of the day. The teacher is not a pedophile: in the famous University scandal