Forester report: „Google won’t become a bank but it could easily become a financial services hub”

Google won’t launch a traditional bank because of the associated costs and regulation, but these hurdles won’t stop the firm from redefining the future of financial services, according to a new Forrester report.

The report, written by Forrester analyst Oliwia Berdak, postulates that Google will likely become a financial services hub that facilitates the relationship between the consumers and providers of financial services, causing disruption in four areas: payments, money management, product comparisons, and financial advice.

„”When will Google launch a bank and what will it look like?” is a question I frequently hear from our banking clients. Google’s activities in digital wallets and payments, as well as its reputation as one of the most disruptive firms in the market, have obviously left many banking executives worried” about a potential new rival writes Berdak, in a blog post. „Unfortunately, they’re asking the wrong question.”

According to the Forrester analyst, “Google’s foray into digital wallets has demonstrated the firm’s willingness to disrupt the payments ecosystem”. However, Forrester believes that the future of Google’s financial services lies in the integration and leverage of the firm’s other products to create new customer value that goes beyond payments.

“For a firm that uses information to solve problems, a logical next step is to use product, consumer and transaction data to deliver financial advice and tailored product recommendations. Google won’t become a bank – it’s not another bank that people want – but it could easily become a financial services hub to facilitate the relationship between consumers and providers of financial services.”