Checking accounts would be rich data trove Google says it will keep to itself.
The Google empire is enormous and ubiquitous, covering basically the entire Internet in one way or another. There is, however, one lucrative business the company does not yet have a foothold in: banking. And now it has plans to change that.
Google is working to launch consumer checking accounts next year, The Wall Street Journal first reported this morning. The project, code-named Cache because apparently nobody can resist a pun, is expected to launch next year, sources told the Journal. CNBC, also citing "sources familiar," confirmed the WSJ's reporting.
Google: Not a bank
The accounts will be run in partnership with Citibank and a credit union based out of Stanford University. Google executive Caesar Sengupta told the WSJ that the accounts will carry branding from the banks, not from Google, which will also "leave the financial plumbing and compliance" to the banks.
Google and its partners are still hammering out the details of these accounts, including whether or when accounts might incur fees. (Many banks that offer checking accounts waive monthly fees for customers who maintain a certain average balance or who use direct deposit.)
"Our approach is going to be to partner deeply with banks and the financial system," Sengupta told the WSJ. "It may be the slightly longer path, but it's more sustainable."
Banks are subject to fairly strict regulatory standards. An institution offering a checking account must comply with a lengthy list of federal laws, as well as any relevant state laws that might apply....MORE
