Amazon “could acquire 70 million users of financial services within five years, a recent survey by consulting company Bain & Co showed.
The concept of “Amazon Bank” could soon go to a higher level. Namely, the US technology giant is negotiating with several US banks on partnership in managing transaction accounts for young people, Wall Street Journal reported.
It is said that “Amazon” is negotiating with “JP Morgan”, “Capital One” and some other companies that provide financial services on the possibilities of opening a cheeking account. This is the American equivalent of a transaction account – for young people and for people who do not yet have a bank account under the “Amazonian” brand.
Talks are at an early stage, sources say, but a partnership approach could open up the door to financial services across technology companies.
JP Morgan spokesman refused to comment on this information. “Capital One” replied that they did not comment on “rumors and speculation,” and neither “Amazon” was available for comment, WSJ said.
“Amazon” could acquire 70 million financial services users within five years, a recent survey by the Bain & Co consulting firm showed. This is roughly the same number of users, which today has Wells Fargo, the third largest US bank.
The survey covered 135,000 consumers in 22 countries. It turned out that the financial products of technology companies are ready to use more than half of US respondents and even three quarters of the total number of respondents between 18 and 24 years old.
The survey also showed that respondents, with regard to technology companies and financial services, most trusted “PayPal” and “Amazon”.
The assumption is that technological giants have the processing power and knowledge of the information security required to store and process a large number of financial data and transactions. These technological advantages can be combined with users with attractive functionality and simple services.
Unlike banks, technology companies are not subject to strict regulation, but this could change when they start to offer banking services.
Internet giant Google, among other things, has shown interest in entering the financial services area. Consumers in Europe are increasingly considering companies, such as Facebook and Google, as potential providers of financial services.
Google’s interest in financial services is not surprising given that the company processes millions of transactions on a daily basis with simple online services.
On the other hand, banks could offer financial services through technology companies. Thus, technology companies would offer services under their brand, make decisions about products and interest rates, and banks would provide them with the necessary logistical support (the concept of “white label”). This could include all necessary legal obligations and financial knowledge and skills.