Google launches banking service Cache
Last year the biggest names in tech have started to slowly make their way into fintech. From Apple’s credit card, to Facebook’s cryptocurrency, even Amazon is now discussing options with banks to introduce accounts to its users. The latest big name to join the fintech race is said to be Google, with a product code-named Cache, according to the Wall street Journal. The product personal checking account service will reportedly be launched sometime next year, with the help of partner Citigroup.
Despite the tech giants’ tremendous reach, all of their fintech endeavors have run into problems. After Facebook received backlash fr om regulators, several of the company’s partners have backed out of the project. Meanwhile Apple’s partner Goldman Sachs faced legal issues for alleged discriminatory practices in regards to the credit lim it policies that the company set for its clients.
Google, however, is trying to give the financial system more leeway and will not be branding the personal account service under its name, like its current Google Pay service, according to the WSJ.
“Our approach is going to be to partner deeply with banks and the financial system,” Google executive Caesar Sengupta said. “It may be the slightly longer path, but it’s more sustainable.”
Much of the concern from consumers stokes from the way the companies handle data. Facebook has been held in the media’s spotlight over selling user data to advertisers without their explicit consent, while Amazon constantly receives public backlash over the security of its smart home products and the way they handle gathered information.
Although Google has a relatively good track record for the way it securely handles users’ data, Sengupta reassured that Google would not sell users’ financial data that is gathered from the new service in the same way that Google does not share data collected from Google Pay.