The role of Google in the financial services industry has evolved significantly, shifting away from direct consumer-facing offerings to becoming a critical technology enabler for fintech startups and financial institutions, a new report by C-Innovation, a French fintech-focused research firm, says.
The analysis, released in November, explores Google’s expanding role in the financial services industry, focusing on how technologies such as Google Cloud, artificial intelligence (AI) tools, and Google Wallet, are empowering banks and fintech companies to swiftly innovate, scale and enhance customer experiences.
Google Cloud: supporting growth and improving efficiencies
The report highlights the growing influence of Google Cloud in the financial services industry. Google Cloud is a suite of cloud computing services offered by Google. It provides infrastructure, platforms, and software that allow businesses and developers to build, deploy, and scale applications, store and analyze data, and more.
In the financial services industry, Google Cloud allows banks and fintech startups to meet changing customer demands, scale their operations efficiently and manage large user bases without the need for substantial investments in IT infrastructure.
Meanwhile, Google Cloud’s AI tools are designed to improve operational efficiencies. Lending Doc AI, for example, is an AI-driven tool designed to streamline the processing of loan documents. The tool uses advanced machine learning (ML) to extract, classify and analyze data from complex documents like mortgages applications, tax forms, and financial statements.
Today, over 200 companies within the financial services sector rely on Google Cloud, cementing its position as a major force in the digital banking landscape. Notable customers include industry leaders such as Deutsche Bank, HSBC, BBVA, Revolut, Monzo, and Starling Bank.
The report highlights the case of Revolut, which uses Google Cloud’s infrastructure to enhance infrastructure scalability, automation and security. Through Google Compute Engine, Revolut has optimized its infrastructure, enabling automated deployments and updates that allow the company to scale in response to growing demand efficiently.
Revolut also makes use of Google Cloud APIs and automation tools to further streamline processes and improve scalability across its operations in over 35 countries.
Another example is the partnership between Google and GoHenry by Acorns, a fintech company focused on children’s financial education. This collaboration focuses on enhancing financial literacy through wearable technology, integrating GoHenry’s financial education tools with Google’s Fitbit Ace LTE.
It allows children under 13 to manage money safely using GoHenry debit cards linked to Google Wallet. Parents, meanwhile, can set spending limits and monitor transactions, providing kids with real-world financial responsibility in a controlled and secure environment.
Expanding Google Wallet capabilities for banks and fintech startups
The C-Innovation report also notes the expansion of Google Wallet, which now offers digital identity (ID) solutions alongside its traditional payment features. These products and features are providing new ways for digital banks to improve onboarding and facilitate cross-border services.
By enabling users to store digital versions of government-issued IDs, Google Wallet allows for seamless identity verification, simplifying the onboarding process for neobanks, reducing friction and enhancing user experience with secure biometric authentication.
While Google services offer significant benefits to financial services companies, including enhanced scalability, cost efficiency and operational effectiveness, C-Innovation cautions against the risks of deep integration into Google’s ecosystem, highlighting concerns including over-reliance on Google products, regulatory challenges, and privacy issues.
In addition to its business-to-business (B2B) services, Google also has a strong customer-facing presence in financial services.
Google Pay is a mobile payment service that powers in-app, online, and in-person contactless purchases on mobile devices, enabling users to make payments with Android phones, tablets, or watches. Launched in 2011, Google Pay has amassed approximately 150 million users worldwide, recording US$110 billion in transaction value in 2019. The service is available in over 60 countries and territories.
Google has also expanded its services through partnerships with banks and financial services providers. In India, Google is partnered with banks like Axis Bank and ICICI Bank to offer consumer and business loans. Google is also teamed up with Affirm and Zip, two major buy now, pay later (BNPL) players, to offer BNPL options to Google Pay users.
Featured image credit: edited from freepik
Comments