The position of Google within the monetary companies business has developed considerably, shifting away from direct consumer-facing choices to turning into a vital 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 position within the monetary companies business, specializing in how applied sciences comparable 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 development and bettering efficiencies
The report highlights the rising affect of Google Cloud within the monetary companies business. Google Cloud is a set of cloud computing companies supplied by Google. It gives infrastructure, platforms, and software program that permit companies and builders to construct, deploy, and scale functions, retailer and analyze information, and extra.
Within the monetary companies business, Google Cloud permits banks and fintech startups to satisfy altering buyer calls for, scale their operations effectively and handle giant 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 information from advanced paperwork like mortgages functions, tax kinds, and monetary statements.
In the present day, over 200 corporations inside the monetary companies sector depend on Google Cloud, cementing its place as a significant power within the digital banking panorama. Notable clients embody business leaders comparable 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 means of 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 nations.
One other instance is the partnership between Google and GoHenry by Acorns, a fintech firm targeted on kids’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 kids underneath 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 surroundings.
Increasing Google Pockets capabilities for banks and fintech startups
The C-Innovation report additionally notes the enlargement of Google Pockets, which now provides digital identification (ID) options alongside its conventional fee options. These merchandise and options are offering new methods for digital banks to enhance onboarding and facilitate cross-border companies.
By enabling customers to retailer digital variations of government-issued IDs, Google Pockets permits for seamless identification verification, simplifying the onboarding course of for neobanks, lowering friction and enhancing consumer expertise with safe biometric authentication.
Whereas Google companies provide important advantages to monetary companies 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) companies, Google additionally has a robust customer-facing presence in monetary companies.
Google Pay is a cell fee service that powers in-app, on-line, and in-person contactless purchases on cell 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 accessible in over 60 nations and territories.
Google has additionally expanded its companies by partnerships with banks and monetary companies 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.
Featured picture credit score: edited from freepik
