Google will enter the world of bank accounts with Citi.

The new product will be introduced to the market in 2020, according to a person familiar with the matter.

Google will enter the world of bank accounts with Citi.
Google will enter the world of bank accounts with Citi.

Google has partnered with Citigroup and a local credit union in California to offer checking accounts to customers, a person familiar with the matter said Wednesday.

The product will be introduced to the market in 2020. Citigroup will manage most of the financial and compliance requirements, said the person, who asked that his identity not be disclosed because the project has not been publicly announced. Customers can access their accounts through the company's Google Pay application, the person added.

The measure is the most recent among the Silicon Valley technology companies that are trying to gain a foothold in the territory of financial companies to expand control over clients and accumulate data regarding their finances.

The nightmare for the financial industry is for technology giants to replicate the success of Alipay and WeChat in China, where money flows through digital systems without the need for banks.

To combat that threat, Wall Street is reaching agreements to maintain firm control over its customers. Apple has partnered with Goldman Sachs this year to offer a credit card that had granted loans worth $ 10 billion by September 30.

JPMorgan is developing an electronic wallet that would give companies such as Airbnb and Amazon, the ability to provide customers with virtual bank accounts.

Facebook has developed a cryptocurrency project called libra, which raised criticism from Congress. The company's history of social networks in terms of privacy and other matters makes it unfit for its incursion into financial services, according to Congress.

A Google representative from Alphabet did not immediately respond to a request for comment. Citigroup declined to comment.

Wall Street Journal previously reported on Google's plan on Wednesday.


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