Everyone keeps talking about Big Tech opening banks. Rather than opening or buying banks, most of the Big Tech firms are partnering with them. Apple and Goldman Sachs make a nice pair as does Google, who partner with a variety of banks to offer financial capabilities. Several of the Big Tech firms have danced around the edges of finance, in particular Amazon, but none of them have opened or offered a full deposit checking account. Why? Because it’s too much work. It requires offering full-service offerings that are fully regulated and fully compliant.
This is why Big Tech is far happier working with banks than trying to shut them down. In fact, most Big Tech – Google Cloud and Amazon Web Services for example – can make far more out of banks by offering them technology services than trying to compete with them head-to-head.
But there’s another reason why I don’t see Big Tech moving into Big Banking.
Service.
Big Tech is all about digital experiences. Money is about trust.
That’s the reason why, when thinking about this week’s Karaoke Challenge, Ghostbusters came to mind. It came to mind not only because we are busting a myth – Big Tech will not open a bank of their own to compete with Big Banks – but also because it fits perfectly to the refrain of Not Google! This refrain was kind of inspired when I realised that, if your internet search fails, who you gonna call? Not Google! They have no telephone number.
NOT GOOGLE!
When your app breaks down
And you can't get cash
Who you gonna call?
NOT GOOGLE!
When you’re nearly broke
Pick up the phone
Who you gonna call?
NOT GOOGLE!
I ain’t afraid of no bank
I ain’t afraid of no bank
When you’re trying hard
And you’re in the red
Who you gonna call?
NOT GOOGLE!
When you get a windfall
And want to invest
Who you gonna call?
NOT GOOGLE!
I ain’t afraid of no bank
I ain’t afraid of no bank
When you’re buying a home
And need a loan
Who you gonna call?
NOT GOOGLE!
I ain’t afraid of the bank
I’m working with my bank
Lemme tell you something
Banking makes me feel good
I ain’t afraid of the bank
I’m working with my bank
For all banks’ faults
They’re our friends too
They understand risks
NOT GOOGLE!
You may not like them
But they understand you
Better than tech
NOT GOOGLE!
Who you gonna call?
NOT GOOGLE!
Who you gonna call?
NOT GOOGLE!
Who you gonna call?
NOT GOOGLE!
Who you gonna call?
NOT GOOGLE!
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...
