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Google will join Apple and Facebook in its endeavor to push into financial market.
Major tech companies are entering the consumer financing market to get new sources of revenue and new opportunities to strengthen ties with users. Same goes for Google, it is planning to offer checking accounts in 2020. Personal checking accounts will be offered through Google Pay app and will be run by Citigroup Inc. and Stanford Federal Credit Union.
"We're exploring how we can partner with banks and credit unions in the U.S. to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools, while keeping their money in an FDIC or NCUA-insured account," Google spokesman Craig Ewer said in a statement.
However, the project has become another concern for U.S. regulators and lawmakers which are already worried about tech giants entering new fields before rules governing them are in place even though Google said that they wouldn't sell data of users with checking accounts and doesn't share Google Play data with advertisers
Citi and Stanford Federal confirmed their roles. For lenders, this project is an opportunity to expand the reach and breadth of their customer base. Lenders prioritize transparency and privacy and if they do not share consumer's financial data with Google, there may not be license requirements or regulatory problems.