What you need to know
- Google is set to start offering checking accounts in 2020.
- The project is code-named 'Cache' and is a partnership with Citigroup and a Stanford University credit union.
- Users will be able to manage their accounts using the Google Pay app.
It looks like Google is poised to make a move against the Apple Card, with the Wall Street Journal reporting that the tech giant will begin offering checking accounts in 2020. The project, cleverly code-named "Cache", is a partnership between Citigroup and a Stanford University credit union which will handle the financial backend and regulatory compliance.
The front-end of the checking account will be handled by the Google Pay app to help manage your banking and payments digitally. When speaking to the WSJ, Google executive Caesar Sengupta also mentioned that there could be loyalty card programs included with the checking account as well.
Of course, one of the biggest concerns with Google becoming your bank of choice is data collection. Bank accounts are a valuable resource when it comes to learning how much money you make or what you like to spend your money on. However, Google has stated that it won't sell checking or account data to advertisers, and noted that it doesn't currently use Google Pay data for advertising either.
Regardless, it still shines a light on how integral tech companies are becoming in our lives and how much data they have aggregated on us. Just recently, Google took criticism over data collection with "Project Nightingale" where it collected medical records of millions of patients across 21 states. Google's recent acquisition of Fitbit also has its community of users worried about what the advertising company will do with their data.
We won't learn much more about Cache until next year, but in the meantime, Google isn't the only one getting into financial services. Back in April of this year, T-Mobile opened its own online checking account T-Mobile MONEY, offering up to 4.00% APY. Then, just yesterday, Facebook Pay was announced which will eventually allow users to make payments via Facebook, Messenger, Instagram, and WhatsApp.