Amazon talks to banks over checking account

Chelsea West
March 6, 2018

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. It looks like this is a very limited move and they're partnering with JPMorgan.

"Last fall, [Amazon] put out a request for proposals from several banks for a hybrid-type checking account and is weighing pitches from firms including JPMorgan and Capital One Financial Corp., some of the people said". Amazon is also weighing entering into the health and prescription drugs business.

Speaking at JPMorgan's investor day, CEO Jamie Dimon quoted Amazon's CEO, saying: "Jeff Bezos says 'Your margin is my opportunity'".

Nevertheless, the survey found nearly 1 in 4 consumers said they'd have less trust in Amazon than in a traditional bank, while only 17 percent said they'd trust Amazon more. Among the companies Amazon officials are speaking with is JP Morgan Chase & Co., according to the newspaper.

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"There might be a time in the future where I might turn to my two kids and say, 'Who are you banking with at the moment?' And they say money's with HSBC but I really like using the Amazon front end for this, that, and the other".

For customers, the payoff would presumably be some combination of low fees, free Prime membership, or Amazon-specific spending rewards. In addition, almost 50 percent would use a savings account if Amazon were to offer one to its clients.

[Amazon's] more-than $700 billion market value eclipses the combined value of JPMorgan and Bank of America Corp, the two biggest US banks.

Other reports by TheSundaySentinel

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