Google is the latest technology company to announce a new financial product for users ̵
The company plans to partner with banks and credit unions in the US to offer "Smart Checking".
The Google Pay launched service is designed to allow users to add Google analytics tools to traditional banking products.
The move follows the offers of credit cards, payment systems and loans from Facebook, Uber, Apple and Amazon.
While products and agreements differ, technology giants entering the banking world share a common motive: they make themselves indispensable, says Gerard du Toit, a partner of consulting firm Bain & Co.
"They all compete to attract the attention of consumers and their ecosystem and platform, "he says.
Amazon's credit card and business loans are designed to boost the e-commerce business, while Uber Money provides credit cards, debit accounts and money-tracking tools to support the company's taxi operations.
Facebook has announced its Facebook payment service will complement its messaging tools.
And both Google and Apple, who have teamed up with Goldman Sachs's new consumer arm Marcus, want to make iPhones and Android on a credit card as part of their Apple Pay and Wallet service.
Entering financial services will also provide Google and Facebook information for the advertising business, and help monitor what leads to purchases, said Mr du Toit Riesen, who already faces competition, privacy and data protection issues are.
Some officials also expressed concern over gaps in financial supervision as growing activities outside traditional banking take place. And in the last few days, New York announced that it was investigating Apple after it was accused that its credit card was based on "sexist" algorithms.
Mr. du Toit said regulatory concerns were a "fly in the ointment" for tech companies.
"You must be very careful," he said.
In many cases, the tech companies working together with traditional banks – a sign that they are aware of the potential problems, he said.
Google said its US partners, which Citigroup reportedly owns, would offer the accounts from 2020.
"We believe that our partner's regulatory and financial expertise is an excellent complement to our experience building helpful tools and technologies for our users," states a statement.
China in arrears
Amazon has been providing loans to small businesses since 2011 and has launched its 2017 credit card with JP Morgan Chase.
In a sense, however, the tide of corporate announcements this year is a sign that the US is too late for the party.
In China and some other countries, technology companies quickly entered banking as they had to fill the gaps of the traditional financial industry that had created hurdles for their businesses, be they e-commerce companies or food suppliers.
Demand was less urgent in the US, partly because of the ubiquity of credit cards and other "good enough" solutions, Mr. du Toit said.
Large technical payment services of companies such as Alibaba According to the International Settlements Bank, an organization supported by 60 of the world's central banks, Ant Financials and Tencent's WeChat account for around 16% of China's GDP, compared to less than 1% in the USA.
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Technology companies are "getting more involved because they believe they can offer a much better solution to customers," he said.
Last month, Facebook boss Mark Zuckerberg pointed to the threat posed by Chinese competition and defended his company's interest in developing a crypto-currency before Congress last month.  "I see the financial infrastructure in the US as obsolete," he said.
"Darwin's Nice Experiment"
As the tech companies begin to exploit their tremendous reach, close customer relationships and huge amounts of data, banks "woke up" to the threat, resulting in collaborations and other unpleasant "frenemy "I have described this as a gigantic Darwinist experiment with various couplings of the banks and the big technicians," he says. "There will be some mutations that will succeed and others that will
While Google's past efforts to build Google Pay were not well received in the US, the company has built a significant payment business in India, where a Bain & Co survey found that more than half of respondents said that Platform in the past 12 months.
"I would not count them out," said Mr du Toit.