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Amazon in early talks with US partner banks to launch current account

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  • 06/03/2018
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Amazon in early talks with US partner banks to launch current account
Reports suggest U.S digital giant Amazon is in talks with several big banks, including JP Morgan Chase, to potentially launch a current account targeting the young or those without bank accounts.

 

 

 

 

A report from the Wall Street Journal suggests Amazon has no plans to launch a disruptor bank  in the USA, but is looking for partners to create a white label finance brand. US banking commentators have long suggested that post-credit crisis regulations have formed a protective moat keeping out new challenger banks as the capital requirements are bad for profits.

The current account would slash fees payable by Amazon to finance firms and allow it to collect valuable data on customer incomes and spending habits.

The effort is still in its early stages and may not come to fruition, the source said.

 

Fearsome competitor

The report said with millions of customers and a $700bn (£506bn) market value, troves of data, access to cheap capital and seemingly unlimited leeway from its investors to enter new businesses, Amazon is a fearsome competitor.

Other markets Amazon is preparing to launch into include a delivery service, hospital supplies and prescription drugs.

In a recent poll of 1,000 Amazon customers conducted by LendEDU, an online student-loan marketplace, 38% said they would trust Amazon as much as a traditional bank to handle their finances.

Amazon was unavailable to comment.

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