Would you bank with Google (or another tech company)?
Posted: Thu Sep 10, 2020 4:04 pm
Would you bank with Google (or another tech company)?
Should You Bank With Google?
Tech companies may offer better deals than traditional banks. But there’s a trade-off.
https://www.kiplinger.com/article/credi ... oogle.html
"What are the potential benefits for consumers? Tech companies will likely offer lower fees and higher interest rates than traditional banks. Some may offer cash incentives or other perks to encourage customers to make the switch. Many are also focused on offering a better customer experience by offering apps that are easy to use, making it easier to find the information you need within an app, and figuring out the right way and time to connect with you to be useful but not annoying.
As these companies get to know customers better, they’ll start giving them personalized offers. For example, if they know how much you’re paying on a mortgage, they may infer the rate and offer you a refinance option with a lower rate through a partner.
What are the trade-offs? You are giving the tech company your financial data. They’ll see how much money you have in your account, what bills you’re paying and more—and they’ll use that information to try to sell you stuff and market financial products. Customers who are concerned about their privacy may want to use a diverse portfolio of service providers—keeping social accounts in one bucket, banking in another and investments in a third—to avoid giving a single company a full view of their affairs. There are also a lot of boring but important functions that traditional banks do well, such as maintaining branch locations and call centers, that aren’t always a strong suit for technology companies."
Should You Bank With Google?
Tech companies may offer better deals than traditional banks. But there’s a trade-off.
https://www.kiplinger.com/article/credi ... oogle.html
"What are the potential benefits for consumers? Tech companies will likely offer lower fees and higher interest rates than traditional banks. Some may offer cash incentives or other perks to encourage customers to make the switch. Many are also focused on offering a better customer experience by offering apps that are easy to use, making it easier to find the information you need within an app, and figuring out the right way and time to connect with you to be useful but not annoying.
As these companies get to know customers better, they’ll start giving them personalized offers. For example, if they know how much you’re paying on a mortgage, they may infer the rate and offer you a refinance option with a lower rate through a partner.
What are the trade-offs? You are giving the tech company your financial data. They’ll see how much money you have in your account, what bills you’re paying and more—and they’ll use that information to try to sell you stuff and market financial products. Customers who are concerned about their privacy may want to use a diverse portfolio of service providers—keeping social accounts in one bucket, banking in another and investments in a third—to avoid giving a single company a full view of their affairs. There are also a lot of boring but important functions that traditional banks do well, such as maintaining branch locations and call centers, that aren’t always a strong suit for technology companies."