Many believe the move makes perfect sense, as Amazon wants to own every step of the customer experience, from shopping to delivery. Why not accounts and payments?
The strategy could help Amazon lower fees it pays to financial firms and give it a bigger window into customers’ income and spending habits. Analysts are suggesting that an Amazon bank could rival Wells Fargo with 70 million customers. Some have even stated that Amazon could become the third-biggest US bank if it wants to.
In the article by Euromoney, Meniga CMO and VP Business Development Bragi Fjalldal, shares his insights on what Amazon’s potential move into banking would mean for the industry, what the impact could be for banks and their customer relationship and how banks can respond.
Read the full article here.
“Amazon are about to prove that it is possible to disrupt banking without a banking licence. If Amazon asks a bank to white-label their current account on favourable terms — who is going to say no to that? If this move by Amazon is a sign of what is to come, banking may look very different a few years from now.”
Euromoney is a monthly publication providing information on international banking and the capital markets. It was was created in 1969 to cover the re-emergence of the international cross-border capital markets.
The publication covers a range of financial markets and asset classes, including banking, capital markets, forex, investment, private banking, emerging markets and transaction services. Euromoney has offices across Europe, the US, Asia and Latin America.