In partnership with
Citigroup and the
Stanford Federal Credit Union, Google plans launching a checking account linked to
Google Pay. The project codenamed
Cache, announced at the end of 2019, is expected to launch this year, and Google is open to adding more banks to it in the future.
Why Is This Deal Important
Google's latest move is seen as an expansion of
its hold on customers and intention to
accumulate data on their finances. At the same time, the banks are profiting from the tech giant's ubiquity, agility, entrepreneurial culture, and new technologies.
While Citibank is allowing Google access to its global network of more than a hundred million clients, it is benefiting from Google's users as well. A key target for Citibank are younger consumers, and studies have shown that they have the most affinity for opening an account affiliated in some way with players like Amazon or Google.