Google’s plan to launch a digital banking service may be accelerating with the recruitment of six banking partners including BBVA USA, BMO Harris; Coastal Community Bank; First Independence Bank; and SEFCU in the United States.
The partners who will join existing partners like Citi and SFCU expected to manage the money that will be insured by FDIC, allowing Google to play the role of “front-end”.
Google’s digital banking ambitions became public knowledge in 2019 by the Wall Street Journal. According to the report, Google was going to offer checking accounts service to users with the banks handling all financial and compliance activities related to the accounts from early 2020. Google expects that its partnership with global banks, smaller credit unions with deep community ties, will have more opportunities to build products that address its consumers’ diverse needs.
“We had confirmed earlier that we are exploring how we can partner with banks and credit unions in the US to offer digital bank 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,” said a Google spokesperson. “We are excited that six new banks have signed up to offer digital checking and savings.”
There are also reports that Google is planning to launch a branded debit card to be managed in the Google Pay app.
“When we launched our new 5-year strategic plan in January, we said that two key pillars were to reach more customers with our digital offerings and use our expertise in finance, digital and innovation to help them improve their financial health,” said Javier Rodríguez Soler, BBVA USA President, and CEO. “This collaboration with Google is fully aligned with this effort – even more so in today’s world where the ability to conduct your financial life in a digital manner, from account opening to transacting to understanding financial health, is imperative.”