Every tech company dreams of becoming a bank

[zakiyatasnim]

It seems that the tech giants have a new goal and are getting closer to it, step by step. Do the companies really want to become a bank or are they just trying to strengthen their own dominance?



Bad experience
In the early 2000s, Walmart tried to start a bank. It was a well-trodden path; even rivals like Target had already taken the plunge. Still, the hooks were quickly raised. The United States passed laws to ban potential Walmart branches. Negotiations with regulators dragged on. Members of Congress drafted a bill that would prohibit retailers from doing banking. It spain number data was a question of both scale and credibility: whether to allow a retail conqueror to target another industry and potentially dominate it. Ultimately, after nearly a decade of trying, Walmart abandoned the idea.

“We don’t plan to do this again,” Jane Thompson, Walmart’s president of financial services, said at the time. “The bank is a thing of the past. We will use our partners to launch new products.”

As big tech companies delve into banking, this is not only a cautionary tale, but also an agenda for action.

Cautious and ambitious
Google recently confirmed reports that it will start offering checking accounts next year. Uber, called Uber Money, wants to be a bank for its drivers (and maybe for its riders, too). Apple has an unbreakable credit plate. Facebook just introduced Facebook Pay — basically Venmo, except Facebook gets all the transaction data for ads. Amazon, like Google, is reportedly looking into its own checking accounts.

And that makes sense. The profit engines for American tech appear to be slowing. Last month, Facebook warned investors that it could face problems with digital ad targeting. iPhone photos can be much sharper, and Amazon deliveries can be faster.