Google hasn't decided if it will charge consumers for the bank account and management remains open to including more banks in the future.
Alphabet's Google is set to offer personal checking accounts from sometime next year in partnership with Citigroup and a small credit union at Stanford University, a source familiar with Google's plans said on Wednesday.
However, Google did commit to not selling that data to advertisers. At the same time, it shows banks are more willing to pair up with technology companies in their quest to avoid getting shut out of the relationship entirely. As Mr. Sengupta was quoted, "If we can help more people do more stuff in a digital way online, it's good for the internet and good for us".
Google did not immediately respond to a Reuters request for comment.
"This agreement has the potential to expand the reach and breadth of our customer base while complementing our continued investments in digital", Citigroup said in a statement. Instead, this is meant to add value for customers, shops and the banks themselves with services like loyalty programs.
"We look forward to sharing more details in the coming months".
The checking account would be offered by Citigroup, which is one of the largest banking groups in the United States. "As we continue to test and learn and enhance our digital capabilities and experiences, the digital deposit momentum has accelerated through the year". (NASDAQ: AAPL) advertised its new credit card as "designed by Apple, not a bank". Apple has caught some flak from its banking partners for trying to obscure their involvement, but Google will include its partner branding prominently in the service.
Facebook Inc. launched a cryptocurrency project dubbed Libra that drew critics in Congress who said the social media company's track record on privacy and other matter disqualifies it from moving into financial services.
Surane writes for Bloomberg.