Amazon talks to banks over checking account - WSJ

Amazon has begun talking to banks, including JPMorgan Chase and Capital One, about developing a checking account-style product for its millions of customers, according to the Wall Street Journal.

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Amazon talks to banks over checking account - WSJ

Editorial

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Talks are at an early stage and the exact shape of any product and what services it would include has not been finalised, although it would be targeted at younger people and those without bank accounts, says the Journal, citing sources.

For years, speculation has bubbled that Amazon and other tech giants could move into banking, but so far these firms have only dipped their toes into areas such as payments and lending.

One reason has been the regulatory barriers they would face, something which seems to have convinced Amazon to partner a traditional lender, rather than directly compete.

Amazon already has a co-branded credit card with JPMorgan Chase and recently teamed up with the bank and Berkshire Hathaway to investigate how to improve healthcare for their employees. Capital One uses Amazon's cloud services.

For the banking partner, the tie-up would offer a path to a swathe of new young clients, while for Amazon it could help slash the fees it pays to banks and payment processors, says the WSJ.

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Comments: (2)

A Finextra member 

For about a year now, it has been how and when Amazon would enter retail baning. So, now we are starting to get a picture of how.

Vishwanath Thanalapatti

Vishwanath Thanalapatti Analytics at Temenos

The eco system is further getting merged. If one were to trace the evolution,  Classic banks --> digital banks --> Fintech add ons (service / product intermediation (lending clubs etc) --> next frontier behemoths Amazon (google, apple what next?) --> Finale frontier  ???. exciting times ahead. 

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