The Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) unit is also teaming up with a local credit union at Stanford University to offer bank accounts as part of a project dubbed Cache, according to WSJ. This would put Google in direct competition with legacy financial firms but could face a backlash from Washington lawmakers amid ongoing concerns tech giants have too much influence.
Google won't slap its image on any documentation as the financial institutions' brands will be front and center, an executive told WSJ. By contrast, Apple Inc. (NASDAQ: AAPL) advertised its new credit card as "designed by Apple, not a bank."
Why It's Important
Caesar Sengupta, a Google executive, told WSJ the company's approach is to "partner deeply" with the financial system. This strategy is "more sustainable" although a "longer path."
The executive also said Google won't sell bank users' financial data and its objective is to "help more people do more stuff" in the online universe.
"It's good for the internet and good for us," Sengupta told WSJ.
Google hasn't decided if it will charge consumers for the bank account and management remains open to including more banks in the future.