Google is gearing up for a wide United States launch of its digital banking services by announcing today is it has partnered with 6 additional banks, “Bank Mobile, BBVA USA, BMO Harris, Coastal Community Bank, First Independence Bank, and SEFCU,” as reported by TechCrunch.
The new banks will be a part of a new suite of features for Google Pay users which allows for digital checking and savings accounts. Unlike typical digital banking startups which usually shower customers with their own branding, leaving little space for the banks themselves, Google is allowing banks to build their own co-branded experience.
“We had confirmed earlier that we are exploring how we can partner with banks and credit unions in the U.S. 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,” a Google spokesperson says. “We are excited that six new banks have signed up to offer digital checking and savings.”Google Spokesperson to TechCrunch
While the service is launching this year with a now a total of 8 banks, Apple is one step. Apple launched the Apple Card in 2019 which filled the large demand for a fully digital banking option. The Apple Card enables generous rewards, and exclusive deals with the cash-back at retailers make it an attractive option for customers.
Google hopes to be different by not hosting customer’s data directly on Google Pay, but by instead being a place that draws on data to offer insights into spending and budgeting.
“Being able to support our customers’ financial lives in more places where they’re spending their digital time is important to helping them be successful,”BMO Harris CDO Brett Pitts
While Apple users are likely to go with Apple Card, if they meet the requirements, it remains unclear how big of a threat Google Pay is with the added digital banking service.