After Apple has already expanded its portfolio on the financial market in 2019 in addition to its payment service “Apple Pay”, Google now wants to get significantly more involved in the financial sector alongside its payment service “Google Pay”. According to the Google Watch Blog, the plans go beyond Apple’s, and it should not only be a credit card, but a full current account model that can be used to run regular salary payments, etc.

Of course, a search engine does not suddenly become a real bank, but like any credit card or the Facebook cryptocurrency Libra, there are real banks behind such a project. Citibank and the Stanford University bank are known to date. The aim of an own current account model is not primarily to generate money through interest income, but to be able to analyze the cash flows of the customers. Each user should then be provided with detailed statistics on income and expenditure.

According to the banks involved and also from Google, the issue of data protection and the privacy of their customers are just as important as the service. Because loss of trust would be irreparable damage for everyone involved.

The possibilities that a current account model for Google would offer are enormous. In this way, not only could valuable data about the cash flows of customers be recorded, but also attractive complete packages with Google Pay and the Google checking account could be offered at the same time. And certainly not least to offer the top dog of the payment services PayPal Paroli.

First, Google will start the field trial with its account model from 2020 only in the United States. In Germany, however, other access requirements apply in order to act as a bank. Other domestic banks could then also offer themselves as possible cooperation partners. BaFin is responsible for the admission of banks and financial service providers.

The fact that Google now wants to be more active in the financial services sector is almost a logical consequence to achieve more growth. We will definitely stay on the ball as the new business model in the United States develops. By the time things get going in Germany, there are already plenty of providers to optimize your current account and save account management fees.