The ‘Bank of Amazon’ Could Pose Tough Competition for the Megabanks
As if reports of Amazon’s bank hasn’t shaken up the financial industry enough, a new report by Bain & Company shows that the “Bank of Amazon” could amass more than 70 million customers within the next five years, directly rivaling Wells Fargo bank, which currently has about that number of customers.
The reports lead authors Gerard du Toit and Aaron Cheris, wrote:
We could imagine Amazon’s banking services growing to more than 70 million U.S. consumer relationships over the next five years or so — the same as Wells Fargo, the third-largest bank in the US… Although many retail bankers and observers have pegged the nimble fintech start-ups as the likely disrupters, it has become clear that established technology firms pose a bigger threat.
It’s not hard to imagine a successful banking venture from the e-commerce company, headed by Jeff Bezoz, since the brand is not only expansive in its user-base, but also highly trusted and liked by those users, something many U.S. banks lack.
According to a Wall Street Journal article earlier this week, Amazon is in talks with JPMorgan Chase and other financial institutions to create a bank consisting of checking accounts targeted to a younger demography
