Amazon has already monopolized the e-commerce sector and is now looking to take a piece of the banking industry as well. According to the Wall Street Journal, Amazon is looking to team up with a major financial institution to set up a branded "checking-account-like" product for some of its younger patrons who don't necessarily have a bank account.
Dan Ives, chief strategy officer and head of tech research at GBH Insights relayed to CNBC in an email, “The underlying goal is to further grow its Prime membership through cross-selling into existing J.P. Morgan customers and this could lead to more initiatives down the road.” Ives continued, “Amazon is in fifth gear, trying to double down on the consumer and the finance vertical looks like the next step (through partnerships) of adding to the Amazon flywheel.”
Amazon patrons were surveyed on the possibility of an Amazon banking system and 45% of the respondents to the survey stated they were open to using Amazon as their primary bank account. After the news came down of Amazon's new venture, the company's stock price went up 1.6% while J.P. Morgan rose 1.5%.
Source: complex.com
Comments
Post a Comment