Google “Cache” Grab
Google’s the latest tech company to offer a financial product.
Following the lead of companies like Apple — with its Goldman Sach’s-backed credit card — Alphabet (Google) is expected to roll out checking accounts early next year.
The project, called Cache, will “partner with banks and credit unions… with the banks handling all financial and compliance activities related to the accounts,” Tech Crunch reports.
According to an article at the Wall Street Journal, Citigroup and much smaller Stanford Federal Credit Union are early backers of the initiative.
So what’s in it for Google?
Your Rundown for Wednesday, November 13, 2019:
Google’s Insatiable Appetite
While most of Big Tech’s entry to the world of finance has come in the form of a credit card or payment platform, a checking account seems like a bold choice.
We reiterate: What’s in it for Google?
The tech giant might be able to charge a fee for the checking account privilege but, like any savvy tech company, Google’s really after consumer data.
Even though the company promises not to sell data, Google’s been accused most recently of mining users’ most personal information — their medical records.
Again, according to WSJ: “Google is engaged with one of the U.S.’s largest health-care systems [Ascension] on a project to collect and crunch the detailed personal-health information of millions of people across 21 states.”
[Update: The Office for Civil Rights — an arm of the Department of Health and Human Services — is looking into the Google/Ascension project “Nightingale,” investigating on the grounds of HIPAA violations. Google says it’ll cooperate fully. Boilerplate stuff.]
As for Cache, Google exec Caesar Sengupta says: “If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us.”
What could go wrong?
Sen. Mark Warner makes a valid point: “I’m concerned when we got… these giant tech platforms entering into new fields before there are some regulatory rules of the road.”
Sound off. Would you use Google’s Cache services?
What’s your opinion on Big Tech entering the world or finance… and mining your personal data?
Market Rundown for Wed. Nov. 13, 2019
S&P 500 futures are down 10 points to 3,082.
Oil’s down 35 cents to $56.45 per barrel.
Gold is up $9.40 to $1,463.50 per ounce.
Bitcoin’s down $38.25 to $8,740.96.
Have a good day. We’ll talk tomorrow.
For the Rundown,