The function of Google within the monetary providers business has advanced considerably, shifting away from direct consumer-facing choices to changing into a crucial know-how enabler for fintech startups and monetary establishments, a brand new report by C-Innovation, a French fintech-focused analysis agency, says.
The evaluation, launched in November, explores Google’s increasing function within the monetary providers business, specializing in how applied sciences akin to Google Cloud, synthetic intelligence (AI) instruments, and Google Pockets, are empowering banks and fintech corporations to swiftly innovate, scale and improve buyer experiences.
Google Cloud: supporting progress and enhancing efficiencies
The report highlights the rising affect of Google Cloud within the monetary providers business. Google Cloud is a set of cloud computing providers supplied by Google. It supplies infrastructure, platforms, and software program that permit companies and builders to construct, deploy, and scale functions, retailer and analyze knowledge, and extra.
Within the monetary providers business, Google Cloud permits banks and fintech startups to fulfill altering buyer calls for, scale their operations effectively and handle massive consumer bases with out the necessity for substantial investments in IT infrastructure.
In the meantime, Google Cloud’s AI instruments are designed to enhance operational efficiencies. Lending Doc AI, for instance, is an AI-driven software designed to streamline the processing of mortgage paperwork. The software makes use of superior machine studying (ML) to extract, classify and analyze knowledge from complicated paperwork like mortgages functions, tax kinds, and monetary statements.
Immediately, over 200 corporations throughout the monetary providers sector depend on Google Cloud, cementing its place as a significant drive within the digital banking panorama. Notable prospects embody business leaders akin to Deutsche Financial institution, HSBC, BBVA, Revolut, Monzo, and Starling Financial institution.
The report highlights the case of Revolut, which makes use of Google Cloud’s infrastructure to reinforce infrastructure scalability, automation and safety. By Google Compute Engine, Revolut has optimized its infrastructure, enabling automated deployments and updates that permit the corporate to scale in response to rising demand effectively.
Revolut additionally makes use of Google Cloud APIs and automation instruments to additional streamline processes and enhance scalability throughout its operations in over 35 international locations.
One other instance is the partnership between Google and GoHenry by Acorns, a fintech firm targeted on youngsters’s monetary training. This collaboration focuses on enhancing monetary literacy by wearable know-how, integrating GoHenry’s monetary training instruments with Google’s Fitbit Ace LTE.
It permits youngsters beneath 13 to handle cash safely utilizing GoHenry debit playing cards linked to Google Pockets. Mother and father, in the meantime, can set spending limits and monitor transactions, offering youngsters with real-world monetary duty in a managed and safe setting.
Increasing Google Pockets capabilities for banks and fintech startups
The C-Innovation report additionally notes the enlargement of Google Pockets, which now presents digital id (ID) options alongside its conventional cost options. These merchandise and options are offering new methods for digital banks to enhance onboarding and facilitate cross-border providers.
By enabling customers to retailer digital variations of government-issued IDs, Google Pockets permits for seamless id verification, simplifying the onboarding course of for neobanks, decreasing friction and enhancing consumer expertise with safe biometric authentication.
Whereas Google providers supply vital advantages to monetary providers corporations, together with enhanced scalability, value effectivity and operational effectiveness, C-Innovation cautions in opposition to the dangers of deep integration into Google’s ecosystem, highlighting issues together with over-reliance on Google merchandise, regulatory challenges, and privateness points.
Along with its business-to-business (B2B) providers, Google additionally has a robust customer-facing presence in monetary providers.
Google Pay is a cellular cost service that powers in-app, on-line, and in-person contactless purchases on cellular gadgets, enabling customers to make funds with Android telephones, tablets, or watches. Launched in 2011, Google Pay has amassed roughly 150 million customers worldwide, recording US$110 billion in transaction worth in 2019. The service is on the market in over 60 international locations and territories.
Google has additionally expanded its providers by partnerships with banks and monetary providers suppliers. In India, Google is partnered with banks like Axis Financial institution and ICICI Financial institution to supply shopper and enterprise loans. Google can also be teamed up with Affirm and Zip, two main purchase now, pay later (BNPL) gamers, to supply BNPL choices to Google Pay customers.
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