The Bank of Ireland authorizes Google to operate as a financial institution

The Bank of Ireland authorizes Google to operate as a financial institution


DublinUpdated:

The Irish Central Bank (ICB) has authorized the multinational Google to operate as a payment entity In this country and throughout the European Union (EU), official sources confirmed today.

The measure, adopted by the Irish regulator on December 24 under the Payment Services Directive (PSD2), will allow the technological giant to expand its presence in the financial sector, After obtaining a license from the IBC two years ago to manage electronic money.

With this new permit, Google Payment Ireland You can, for example, manage credit cards, make money transfers «online» of users or currency exchange operations.

It will also have competences to offer clients detailed analyzes of their consumption patterns, in order to design personalized financial and budgetary plans from the information of databases.

License with restrictions

Although PSD2 aims to limit the monopoly of banks in the payment system in the EU, the new license establishes restrictions on Google and, as a consequence, will not attract deposits, an activity reserved for financial institutions.

Google's responsible for trade in Europe, Florence Diss, recently told The Irish Times that the company is more interested in collaborating with banks – instead of competing with them- to explore the business opportunities offered by the PSD2.

In addition to Google, other technology companies have expressed interest for enter the financial sector, like Amazon, Although the process of acquiring licenses to operate as a traditional bank is complex, it has pointed to this medium.

They also compete in this field with a large number of "techno-financial" firms ("fintechs" in English), such as N26, Monzo, Starling, Transferwise or Revolut, which recently obtained a license to operate from the Bank of Lithuania as a bank.

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