Google as Mobile Banking: 3 Things They’ll Have to Get Right First

Google as Mobile Banking: 3 Things They’ll Have to Get Right First

The worst kept secret in the financial services sector is how much  Google wants to get into banking. Of course, it’s a bit of an old secret too. Google is technically already in banking. They own half of Lending Club, a P2P consumer lender. The reason bankers are scared of Google getting into banking outright is that Google is so much better at data analysis than any bank. Their ability to collect everyday pieces of data and turn them into revenue is still amazing – even by today’s standards. But, as I point out in my book, Seven Billion Banks, in order to compete in the future, Google will have to go mobile with their banking services. Right now, Google’s Android devices (can) use a combination of GPS, IP addresses from wireless networks nearby, and the nearby mobile network to help them pinpoint your location. So they have the basics of a location-based platform for banking. But what’s missing? I think 3 things they will have to nail perfectly in order to be a formidable banking foe. 1. Get the Location Right Google does a pretty good job of knowing where you are. But they’re not perfect. If the IP address of a wifi network is incorrectly linked to a geographic location, Google will “find” you in the wrong place. Sometimes, several states away. If you’re on or near a plane or cruise ship, forget it. They will place you somewhere across the globe. The theory should be that there is enough information for Google to get this right, but as of today, they don’t. If you’re on a...