in market share. However, it has made steady gains under cloud boss Thomas Kurian, who, along with Google CEO Sundar Pichai, has repeatedly touted financial services as a target in terms of customers they hope to attract.
"Banks are worried about disintermediation, and I think it's likely that Google executives were getting signals that banks weren't on board with what Google was going to do," said Peter Wannemacher, a Forrester Research analyst who advises banks on digital efforts. "They made the bet that there was a greater gain in selling to banks rather than selling to customers."
Being the customer-facing entity for banks may have risked inviting greater regulatory and Congressional scrutiny, he said. As it is, the public has already become suspicious of technology firms' reach, he added. "Financial services is a difficult space to get into," Wannemacher said. "Everyone knows that, but it's often more vexing and knotty than people expect."Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Soon big tech will crack the code and big banks will get find out. It's a question of time. The likes of Square, Affirm, PayPal etc are only getting better.
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