The Works’ Doug Nicol: Why Google’s US Financial Services Play Was Just Too Hot To Handle
In this guest post, The Works’ partner, Douglas Nicol (pictured below), says Google’s plans to play in the financial services space may have stalled (failed?) but there’s still plenty of lessons to be had from the attempt and plenty of players waiting to fill the void…
This month Google axed its plans to launch a Googleplex bank account, reportedly following pressure from the large US Banks. Why was Google seen as a threat to the established institutions, and what can we learn from the ashes of Google’s plan? It may well be that Google’s financial services value prop for Gen Z was just too threatening.
The story starts 60km north of Seattle
On the face of it, the sleepy commuter town of Everett in Washington State isn’t the obvious ground zero for the future of digital financial services. It’s the home base for Coastal Community Bank, a seemingly unremarkable regional institution with just 13 branches. But despite its modest size, this little community bank was up until this month working with Google to change the face of financial services, notably with Google’s planned GooglePlex bank account. Google has repeatedly said it will never become a bank, but it had chosen a small number of banks to JV with. Google Plex was going to be a big evolution on the Google Pay platform, one that included a partner transaction account, savings account, P2P payments, ecommerce and loyalty programs all smashed into one app. I believe Google above any other tech company, including Apple and new fintechs, was the business most likely to attract Gen Z for their banking needs. Established banks were watching this plan closely – as, in many ways, it was a proxy for understanding what Generation Z want from their bank.
What do Gen Z need from a bank?
Future profits and growth for financial services lie in Gen Z, the early to mid-twenties age cohort who are soon to be the mainstream consumers of pretty much everything. This audience has a distinct set of hot buttons best summed up in the CTP equation:
Convenience + Trust + Personalisation = Value
Google has a distinct advantage with all three of these defining factors. Convenience
Recent research looking at potential features on a Googleplex transaction account from Cornerstone Advisors underlines how critical convenience is to this generation. In particular, the combination of location-based data signals with payment platforms is highly attractive, allowing for features like ‘Get Gas’, which will find the nearest petrol station and also pay for your fill in one simple experience.
Trust
You can’t not notice. Google is currently blitzing us with advertising that it hopes demonstrates why it should be trusted as the protectors of our data. It wants to be seen as the data police, and ultimately the good guy. In the ‘do I trust them?’ stakes Google already has a good foothold on trust, ranking as the number one most trusted brand in Australia – even beating Bunnings. The same survey from The Brand Institute of Australia has no bank on the top 40 most trusted brands (ING comes in at 44th place)
If we’re being honest, Google’s data protection promises aren’t a sign of altruism, but a key pillar to owning the high ground Trust takes.
Personalisation
The problem many Australian banks face is that consumers don’t trust them with their data. Our recent ‘Are You Ready?’ research (July 2021) clearly identifies the problem, with only 34 per cent of consumers trusting their bank with their personal data to drive personalised experiences:
To deliver personalised experiences, you need rivers of data – and Google has them in Amazonian proportions. If you go to your Google account under ‘Privacy and Personalization’ and then tap ‘Ad Personalization’, you can see what Google knows about you. In my case there are 178 different targeting attributes that are scarily accurate (except, perhaps, for my supposed fascination with power tools).
The possibilities for creating fin services value for Gen Z are extraordinary, and no one brand has yet owned this cohort. But it’s clear that the winners in this game will be the businesses that deeply understand the 4.6 million Gen Z consumers who will shape the future of every product and service we sell. With Google apparently retreating from this ambition it will be fascinating to see who fills the void and actually delivers tangible value for Gen Z and their money.
References/Sources
- https://www.savings.com.au/credit-cards/cba-says-apple-pay-google-pay-to- become-the-most-popular-way-to-pay
- https://www.statista.com/forecasts/1187984/online-payments-by-brand-in- australia
- https://thefinancialbrand.com/116739/community-bank-builds-future-on-banking- as-a-service-google-plex/
- https://www.9news.com.au/national/bunnings-and-google-named-as-brands-most- trusted-by-aussies/81e21986-2d46-4aeb-a4fc-eeaec0da3780
- https://thefinancialbrand.com/112405/google-plex-checking-savings-fintech-big- tech-partnership-ron-shevlin/
- https://www.statista.com/forecasts/1187984/online-payments-by-brand-in- australia
Latest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.