Why Is Google About to Launch Checking Accounts for Online Users?
Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google appears poised to launch its own checking accounts for users sometime next year. Caesar Sengupta, a Google executive, spoke to The Wall Street Journal earlier this week and unveiled some details of the tech company's upcoming move into the financial sector, which it has code-named Cache.
The first thing investors should know is that Google won't be issuing the checking accounts itself. The company would need a bank license to do so, which it doesn't have, so it'll rely on Citigroup and a small credit union in California, Stanford Federal Credit Union, to handle that. Instead, it appears Google will be a facilitator for setting up the accounts and will offer users special loyalty programs as an incentive for signing up.
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Source Fool.com
