Amazon looks to offer checking accounts for customers


06 March, 2018

Amazon is exploring the creation of a checking account-style product to offer its customers, The Wall Street Journal reported Monday. Although it is too early to say what the final product would look like, it could allow customers to write checks or access a nationwide ATM network, according to the report. It can help limit the fees it pays for payment processing.

But in talking to JPMorgan and Capital One, Amazon has shown that it does not intend to entirely disrupt the existing structure of the financial business. Whether it's logistics, healthcare, or finance, Amazon's answer to inefficiencies in the marketplace is just to do the same thing, but cheaper.

With Amazon's host of customers and impressive market value, some have wondered whether the e-commerce giant would eventually seek to disrupt the banking system. Meanwhile, Capital One is a longtime customer of Amazon Web Services. This includes buying up Whole Foods previous year and recent plans to offer its own shipping service, which would reduce its need for United Parcel Service, Inc. However, a push by Amazon into financial services would not be surprising in light of its efforts to expand into areas such as health care, where it already is working with JPMorgan Chase and Berkshire Hathaway Inc.

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Before you sell all your bank stocks. 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.

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

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