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Contestable Markets: Google to offer banking current accounts

Geoff Riley

14th November 2019

News here that suggests 'the Four' are looking to enter the banking market, with Google set to offer current accounts, and Facebook, Amazon and Apple already offering financial products, such as credit cards.

These tech platforms are partnering with established financial service providers which suggests they understand that customer trust is essential to make this financial disruption work. The new service, to be launched via Google Pay, will allow users to add Google's analytic tools to traditional banking products.

We'll be hearing a lot more in the years to come of these huge, scaled digital platforms battling it out for dominance in each of their chosen markets. Does the entry of businesses such as Facebook, Google, Apple and Uber into financial services enhance economic efficiency and consumer / social welfare? Should what are essentially tech companies have power in providing financial services? The regulators (one hopes) will be monitoring very carefully but this is a fast-changing environment.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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