It’s been reported that Amazon is considering developing bank accounts for users and is in talks with several banks. The Amazon bank account would be predominantly aimed at younger customers and could also be a useful service for people who are ‘unbanked’, that is unable to access conventional banking services.
None of this means that Amazon itself will be becoming a bank. Under current rules in the USA, Amazon would not be able to make loans but a a partnership with a bank, JP Morgan has been mooted as a service provider. It’s thought that the new service might operate in a way similar to Apple Pay.
Amazon can collect deposits so long as it’s not issuing loans. I’d assume that if apartnership is created that it would be like the Apple Pay arrangement. Apple has a relationship with a number of banks, using their payment systems, but clearly, Apple is not in the banking business.
– Dick Bove, the Vertical Group
And the option of an Amazon bank account, could be surprisingly popular. According to a LendEDU survey, roughly 45% of people have said that they would be open to using Amazon as their primary banking account. 49.6% of this asked said they would use a savings account created by the company.
Nothing has been formally revealed and, as it stands, it seems likely that the service would be only available in the USA to begin with, if and when it launches. There has been speculation about such a move for some time. Banking represents an opportunity that speaks to Amazon’s priorities: they aren’t scared to enter any arena that offers them an opportunity to make money and they like services that knit shoppers more closely to the brand. Bank accounts could be a very lucrative opportunity.