Google will allow users to obtain digital bank accounts via its mobile wallet

Google announced Wednesday that starting in 2021, consumers will be able to obtain digital bank accounts, which it calls “Plex” accounts, from Google Pay. These accounts will be offered by 11 banks and credit unions to get started, and users will be able to get both checking and savings accounts with no monthly fees, minimum balance requirements or overdraft fees.

The company said in a blog post that users can currently join a waitlist to get Plex accounts from Citi and Stanford Federal Credit Union.

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Bankrate chief financial analyst Greg McBride pointed out in a statement that Google doesn’t actually offer the accounts, but rather is partnering with existing financial institutions. “Banks and credit unions that integrate with Google Pay will appeal to young adults and those who don’t have an existing banking relationship,” he said.

The ad is part of a larger list of updates to the Google Pay wallet, including a way to see transactions in a “conversational view” that shows payments to a group of friends or a particular retailer on separate screens. The company will also allow Google Pay users to obtain and view rewards from retailers such as Target Corp. TGT,
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and Warby Parker within the app and will allow people who have linked their bank accounts to the platform to track spending by categories, including granular breakdowns, such as transactions made in Mexican restaurants.

“One of the reasons why Gmail is so successful is its excellent search capability,” said Ted Rossman, an industry analyst at Bankrate, in a statement. “The addition of Google’s search expertise to users’ finances should resonate with consumers wanting to understand their money better.”

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