Amazon may be taking the plunge into banking, and by any estimation, it’s a game changer for the industry, according to Bain & Company. News reports that it is seeking a bank for a cobranded, mobile-friendly checking-account-like product initially targeted to young adults in the US follow earlier moves into financial products.
Additional excerpts from Bain & Company article:
Amazon has spotted a segment of customers that it can serve better, and the company can worry about making money later.
A high level of trust primes people to buy. In the US, more than half of all survey respondents—and nearly three-quarters of those aged 18 to 24—expect to run some of their finances through major tech firms over the next five years
Beyond the direct cost saving, we could imagine Amazon’s banking services growing to more than 70 million US consumer relationships over the next five years or so—the same as Wells Fargo, the third-largest bank in the US.