What I predicted last year (Tech Giants vs Banks) has come true. Google is the latest tech giants to enter into banking sector.
The move follows the Facebook Pay, Apple Pay, Uber Money, Amazon, Walmart, Alibaba and Tencent. The tech giants have started to make use of its massive customer base, enhanced customer experience, latest technology and tools, innovation labs, closed customer relationships and above all, the huge data.
The purpose of the tech giants is to make themselves “indispensable”.
Big tech payment services provided by the likes of Alibaba’s Ant Financial and Tencent’s WeChat account for roughly 16% of China’s GDP, according to the Bank for International Settlements, an organisation backed by 60 of the world’s central banks. Google Pay has developed significant profitable business in India. In the US, however, the need was less pressing, thanks in part to the ubiquity of credit cards and other “good enough solutions”.
Banks especially the smaller ones like the regional / community banks or credit unions have ‘threats’ directly knocking at their doors.
The danger they have been ignoring or have indifferent attitude towards is slowly becoming gigantic and difficult to control. Wake up Banks before it’s too late!