Image credit: Amazon
Having already established their own payment services, credit cards and lending services of short-term loans for its platform merchants, it’s only a matter of time before Amazon enters the banking industry with a bona fide suite of retail banking services.
That was the view of Gerard du Toit from Bain & Company during an interview with Bloomberg, when asked if the establishment of an ‘Amazon Bank’ in 2018 was a possibility.
There has been speculation that the Seattle based e-commerce giant is setting its sights on the banking industry (and also advertising) as their next possible target for expansion after the recent high profile acquisition of Whole Foods Market, an upscale supermarket chain in America.
The entry of Amazon into the banking industry could pose a significant and serious threat to the incumbent providers – especially to traditional banking providers – as Amazon possesses many competitive advantages over them, including access to better data; a superior digital-native platform; and most importantly, the massive customer loyalty it has built over the years of Amazon’s operations.
Could an ‘Amazon Bank’ really become a reality in the near future?
Read the full article written by Jeffry Pilcher published on The Financial Brand here.
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