Amazon Wants to Offer Checking Accounts
- Author: Ronnie Bowen Mar 06, 2018,
Mar 06, 2018, 1:44
In the United States, consider that millennials list Amazon as the app they can't live without, or that 73% of millennials say they would be more excited about a new financial-services offering from Google, Amazon, Paypal, or Square than their bank. Offloading key tasks to a bank could help Amazon avoid some of the strict regulations imposed on financial service providers, which would ease go-to-market efforts.
For instance, the sources said "the talks with financial firms are focused on creating a product that would appeal to younger customers and those without bank accounts".
Kushner's business got big loans after White House meetings
Also early in 2017, Kushner met with a chief exec from Citigroup in the White House. Spokesmen for Deutsche Bank and New York Community Bank also declined to comment.
Probably the best way to read the Journal's piece is to go ahead and assume that whatever it says Amazon won't do and/or whatever it claims is still "unclear", Amazon actually will do. But remember, Amazon is not trying to be a bank. The e-commerce giant has been looking for ways to expand Amazon Pay to brick-and-mortar stores, likely via Whole Foods. Some consumers may not consider an Amazon checking account to be so different from another service already offered by the retail company - its Amazon-branded credit cards.
Despite the billions of dollars going through Amazon's accounts yearly, one area the retailer hasn't really explored is payment processing. McKinsey asked a year ago, answering that in many cases they could. There could be an opportunity for Amazon's banking partners to cross-sell financial products to the customers it attracts through the partnership. In addition, almost 50 percent would use a savings account if Amazon were to offer one to its clients.