By 2025, Amazon will be your Bank.
It’s official, Amazon to help launch accounts aimed at younger customers.
With Amazon’s joint initiative with J.P Morgan in healthcare, the stage is set for Amazon to truly enter banking and financial services sector. This is the perfect time, Amazon’s consumer trust levels are through the roof.
Amazon wants to be your Banker Soon
According to a LinkedIn storyline, now Amazon wants to handle your checking account.
The Cloud-Retail-Tech empire is in talks with JPMorgan and other big banks to create “a checking-account like product” aimed at younger customers and those without bank accounts, The Wall Street Journal reports (Paywall).
Amazon will Revolutionize Data-based Banking Services
The newspaper, citing anonymous sources, said such a product could reduce the fees that Amazon pays to banks and payments processors now, while yielding yet more data on customer incomes and spending habits.
Wired goes on to suggest this could have something to do with new regulations. Changes in those regulations could mean the tech giants will soon be able to access customers’ bank account data, posing a challenge to the old-school banking system. With data based services offering personalized solutions and voice-activated Alexa and Google purchasing, the entire way we participate in consumerism is changing.
Amazon Partnering with Wall Street
Amazon understands that to build the future, it needs to facilitate how young people opt-in to Prime and it’s arena of consumer convenience fulfillment. Of course banking and financial services will be part of that play. The first step is to strengthen existing partnerships with the likes of J.P. Morgan and other banks. But that’s not the end-game!
Amazon is in early-stage talks to create a checking-account-like product.
With the likes of Apple, Google, Uber, Lyft and Amazon becoming more implicated in Healthcare, it’s only a matter of time before the leading tech companies get involved in banking and financial services, and it could disrupt the financial services industry forever. Writing over 100 articles on Amazon, I’ve often talked about how banking was one of the main ways Amazon will make money in the future. It’s likely by 2025, many of us will have accounts with them that will be more customer-centric.
Big Tech will Continue to Disrupt Legacy Industries and Outdated Verticals
Before cryptocurrencies and altcoins can impact the mainstream, Tech companies such as Tencent, Huawei, Alibaba, Didi, Samsung (THADS) of Asia, and (GAFAM) Google, Apple, Facebook, Amazon and Microsoft of America, will become more implicated in the future of banking, investment and all financial services.
Tencent and Alibaba already own the entire marketshare of payments with the virtual disappearance of cash in China. The European Commission’s Second Payment Services Directive (PSD2), became law in January 2018. Facebook may have to invent a cryptocurrency but Amazon has much more potential to disrupt the future of banking.
Amazon’s Partnership with J.P. Morgan a Sign of Things to Come
Amazon’s current play however is not to become a bank. The final product it’s currently working on, will include an Amazon-branded account. Amazon wants to build convenience, not take on its friends just quite yet.
Amazon is considering partnering with Wall Street’s top banks in an effort to build a “checking-account-like” product for customers.
There’s no doubt in the end, Amazon will likely be the one bank for its everything store and ecosystem of value that is Amazon Prime. It could end up happening very fast. If it’s foray into healthcare is successful, it will mean it can start taking on financial services and finally the future of education. Not bad, for a company mainstream publishers still refer to as an “E-retailer”.
Amazon can in this way artificially boost its stock by the power of its brand name and partnerships. The era of our financial health and payment infrastructure becoming totally transparent to Big Tech is worrisome and inevitable. Personalized AI will eventually help us manage all of our assets and we’ll choose the smartest solution that cuts out the middle man, chances are it will be an Amazon banking solution.