Google Financial Services

Google expands offerings and is now moving to financial services.

10:20 23 December 2019

Google has recently announced its move to offer current accounts in partnership with Citigroup and other financial institutions. Just like other large technology companies, such as Facebook and Apple, Google is also looking into leveraging market-leading technology and customer bases in the hundreds of millions to enter markets dominated by traditional players.

 

With extensive data gathering and complex algorithm, Google has better and more efficient tools in assessing an individual’s credit worthiness when compared to criteria used by traditional banks. It can also count on millennials for support as they are more open to the convenience of online accessibility and less concerned about the confidence that comes from dealing with traditional banks.

 

 

However, Google, just like other TechfFins that are trying to enter the market, is most likely to face various challenges, including but not limited to scrutiny of regulators. In the past, Facebook was forced to abandon its ambitious digital currency plans after it met problems with regulators. Wal-Mart also ran into the same obstacle when it tried to enter the retail banking arena. It was also forced to abandon its plans due to significant political and regulatory barriers.