Google is teaming up with six more banks to support its efforts to offer digital checking and savings accounts.The new partners — BankMobile, BBVA USA, BMO Harris, Coastal Community Bank, First Independence Bank, and SEFCU — will join Citigroup and small lender Stanford Federal Credit Union, which Google announced as partners in November 2019.
Unlike neobanks that tend to downplay sponsor banks in favor of pushing their own brand, Google will cobrand its banking services with its partners. Here's how that will be a boon for all parties: Partner banks will benefit from greater visibility and Google's tech capabilities. A cobranded offering means partner banks will be able to grow their account numbers through the Google collaboration without forfeiting too much visibility among customers. Of note, this will mean less control over the client relationship, as the consumer-facing front end will be under Google's control.
Prominent cobranding will allow Google to piggyback on its partners' perceived stability and reliability as incumbent banks. This could assuage the doubts of prospective customers who are unsure whether they are comfortable taking out bank accounts with a big tech company that is otherwise unproven in the financial space.
The firms that will take the biggest hit if Google is able to launch a successful digital banking play will be digitally native neobanks.
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