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Google Wants To Be Your Bank: It Will Offer Account Verification Soon

Google ( GOOGL ) plans to offer checking accounts to customers next year, a source familiar with Google's plans told CNN Business. Google partnered with Citigroup ( C ) and the Stanford University Credit Union for the initiative. The Wall Street Journal was the first to announce Google's account verification.

"We are exploring how we can partner with banks and credit unions in the US to offer smart account checks through Google Pay, helping their clients leverage useful information and budgeting tools while keeping their money in insurance for the FDIC or NCUA, "said a spokesman for the company.

But Google has no plans to take center stage in checking accounts. Instead, financial institutions' brands will be placed on the accounts and banks will be responsible for financial plumbing and spa Partner banks and credit unions will offer these smart current accounts through Google Pay. Google also has not decided whether the bills will charge fees.

Google is trying to deepen its relationship with consumers by going into finance, Ann Dan Ives, Managing Director, Equity Research at Wedbush Securities.

"The company has an unrivaled position in the consumer lifecycle and now they are trying to use their whereabouts," Ives says.

Google now offers smart home devices like Nest and Google Assistant and has just entered the health and wellness world with its planned acquisition of Fitbit.

"The missing piece is bank," Ives said.

Ives said that Google's initiative is unlikely to raise concerns for big banks so far, but the continued expansion of Big Tech's footprint is likely to pose a competitive threat in the future ̵

1; especially since it shows no signs of dropping out. [19659005] "This is just the tip of the spear in terms of where it moves [tech giants are]," Eves said.

Washington lawmakers already investigating the dominance of major technology companies are likely to review Google's move closely.

Google's efforts may draw attention, given Washington's hostility to both Big Tech and Big Banks, said analyst Jarrett Saberg, an analyst at Cowen and Company.

"We have trouble seeing how the combination of the two will produce an outcome that either Democrats or Republicans will accept," Sayberg said.

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