The development may give bank CEOs a few more sleepless nights.

This time Google is the Big Tech that is entering the arena for financial services, adding to a pattern in recent years.

As part of a project code-named Cache, the Silicon Valley firm joins the likes of Apple and Facebook in such efforts, although these have met with obstacles, the Wall Street Journal and other news media reported.

While it might appear a world away from the rarified world of wealth management, the move into banking by a firm such as Google will further enflame debate about what services can be handled by organizations that are very different from banks. 

“We’re exploring how we can partner with banks and credit unions in the US to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools, while keeping their money in an FDIC or NCUA-insured account,” a Google spokesman was quoted as saying. “We look forward to sharing more details in the coming months.”

Such a move is sure to keep some bank CEOs awake at night, adding to the buzz around so-called “robo-advisors” and their challenge to conventional investment management and advisory services.

Amazon has been reportedly talking to JP Morgan about opening a checking account. Apple launched a credit card for iPhone users earlier in 2019 with Goldman Sachs. Facebook has unveiled a new system to enable payments across its systems. More controversial still is the Libra digital currency program at Facebook, which has generated pushback from regulators. (See a story last year about some of these issues.)

It is not just an American story. Google and others join the ranks of firms such as China’s Alibaba in pushing into financial services. These stories add to the idea that established banks, weighed by regulation and legacy issues, are potentially vulnerable to start-ups often having far larger market capitalization.

Cerulli Associates, the global research and consulting firm, last year queried how far the FAANGs can go. (The term applies to Facebook, Amazon, Apple, Netflix, and Google.)

In Asia, to some extent even less beholden to legacy banking models than is the case in Europe or the US, e-commerce giant Alibaba - was founded by Jack Ma - is an example. Its Ant Financial affiliate business provides financial services to millions of citizens. Offerings include access to forms of wealth management.

One research report has predicted that the global wealth management platform market size will expand from $1.70 billion in 2017 to $3.20 billion by 2022, at a compound annual growth rate of 13.4 per cent during the forecast period.

Already, Paypal, the payments service group, helps to power many transactions used by online retailers, so Amazon’s move was seen as a logical next step.

One concern will be how these Big Techs have used client data in the past. In the case of Facebook, for example, controversy over the use or misuse of customer data might mean that regulators will impose tough rules on how they operate as financial institutions.

Banks in most developed countries also come under significant regulatory control, and are required to provide depositor protection, maintain capital buffers against adverse market events such as a share price plunge, and police questionable financial transactions.