Google won’t launch a traditional bank because of the associated costs and regulation and because much of its advertising revenue currently comes from financial services clients, according to a new Forrester report. However, Forrester believes that Google will 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.
“Google’s reputation as one of the most disruptive firms in the market has left many digital financial services executives worried about a potential new rival: Google Bank,” writes Forrester analyst Oliwia Berdak in the report. How should you react? “By cautiously observing Google’s next moves, learning from its best practices, and carefully considering any possibilities for partnerships,” adds Berdak.
Forrester maintains that the future of Google’s mobile payment services lies in the integration and leverage of other product lines, such as Google Maps, Gmail, Google Play, and Google Now. In fact, Forrester sees Google focusing less on in-store payments and more on building a comprehensive digital wallet for every stage of the purchasing journey.
For more information on the new research, please find Oliwia’s blog post here.