Step aside, challenger banks. Google and a band of eight traditional FIs are coming for you.
News broke this morning that six financial institutions have joined Citi and Stanford Federal Credit Union in offering checking and savings accounts through Google Pay. The new banks include BankMobile, BBVA USA, BMO Harris, The Coastal Community Bank, First Independence Bank, and SEFCU.
These new accounts will leverage Google Pay’s existing infrastructure, which will serve as the front end of a fully digital banking experience.
BBVA announced today that its accounts will launch in 2021 as co-branded, FDIC-insured accounts. The bank will provide the account, while Google will provide the front-end, user experience, and financial insights. The collaboration will be facilitated by the BBVA Open Platform, the bank’s open banking initiative.
“BBVA has focused for decades on how it could use digital to advance the financial industry and, in so doing, create more and better opportunities for customers to manage their financial health,” BBVA USA President and CEO Javier Rodríguez Soler said. “Collaborations with companies like Google represent the future of banking. Consumers end up the true winners when finance and big tech work together for their benefit.”
Aside from the list of bank partners, there are not many details available about the new, hybrid accounts. Tech rumor site 9 to 5 Google speculates, however, that Google with leverage the partnerships to issue its own branded debit card.