Google Pay is useful for those looking to digitize their financial incomings and outgoings, but it looks like the ability to open a 'Google bank account' is not going to be on the agenda in the future. Google had previously made clear its plans to offer users an ability to set up a bank account. However, and as is very often the case, Google’s ideas don’t always translate to an actual product or service. Even when they do, there is always the chance Google will kill them off anyway.
Google has developed somewhat of a reputation for killing off products and services. In cases like Google Play Music and Inbox by Gmail, they are simply replaced or absorbed by other services like YouTube Music and Gmail. In other cases, plans are abandoned completely, which appears to be exactly what has now happened with “Plex” accounts. This is in spite of Google having allowed interested consumers to sign up to a waitlist since last year.
In November of 2020, Google laid out its plan to offer users the option to open a bank account with various “trusted financial institutions” directly through the Pay app. At the time, the company explained the banking service would launch in 2021. With the year now beginning to come to a close, the Wall Street Journal reports Google has canceled its plan to offer “Plex” banking services through the app. Since the original report, a Google spokesperson has confirmed "we're updating our approach" to various outlets, including CNBC.
Why Google Changed Its Banking Mind
Google changing direction is nothing new, but in this case the change of heart appears to be the result of a combination of factors that ultimately boil down to delays brought on by the pandemic, a recent change in project leadership, and fears that traditional banks would view Plex as a competitor instead of a facilitator. According to the report, Google isn’t planning on abandoning banking features altogether. It is just the company will readjust its focus to enabling features and support for existing banking solutions rather than offering them directly.
The original idea was one with promise. As explained in the original blog post, Google wanted to simplify banking by making it easier to open an account, manage the account, and without having to worry about issues like overdraft fees and monthly charges. Still, with the way the tech industry is developing, and similar moves having been suggested for companies like Apple, Amazon, and Facebook, among others, consumers are still likely have plenty of digital-first banking choices to consider in the future. It is just Google won’t be one of the companies directly in the running.