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As Amazon’s Alexa and Cloud Grow, Will Voice and Cloud-Based Banking Follow?

Jake MartinbyJake Martin
February 1, 2019
in Payments, Risk & Security
Reading Time: 2 mins read
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E-commerce giant Amazon mentioned its cloud computing platform Amazon Web Services, or AWS, 58 times, its virtual assistant Alexa 25 times, and retail just once in its earnings release for the fourth quarter of 2018.

Perhaps this is an indicator of where the company sees its future growth potential?

AWS sales climbed 45% year-over-year to $7.4 billion for the quarter, although it should be noted growth peaked at nearly 49% in the second quarter of 2018. The platform’s existing users in banking and finance include Capital One and payments fintech Stripe.

As more banks consider deploying cloud-based cores, as Lloyds Bank plc plans to do with cloud banking provider Thought Machine in 2019, it could be a very lucrative time to be growing in this space.

Among other cloud-related highlights, the company’s earnings release touted AWS’s introduction of Amazon Managed Blockchain, which companies can use to build applications for executing multiple-party transactions without a trusted, central authority.

The service “makes it easy to create and manage scalable blockchain networks using the popular, open source Ethereum and Hyperledger Fabric frameworks,” Amazon said. “With a few clicks in the AWS Management Console, customers can set up a blockchain network that can span multiple AWS accounts and scale to support thousands of applications and millions of transactions.”

Alexa, which has not earned its own break-out in earnings reports just yet, contributes to overall Amazon’s retail sales, which is the company’s main source for revenues. North American sales climbed 18% to $44.1 billion for the quarter, while international sales grew 15% to $20.8 billion for the quarter.

CFO Brian Olsavsky made a point during Amazon’s earnings call to say the Echo Dot, the company’s most popular voice-controlled speaker that connects to Alexa, was the highest selling device globally. The number of research scientists working on Alexa more than doubled over the past year.

Alexa is already integrated with financial institutions like U.S. Bank and Capital One for voice banking capabilities. Voice banking — operating one’s bank account by voice — is a hot topic in the industry today, and one of Bank Innovation’s 3 banking and fintech trends to watch this year, although many questions remain. A Bain & Company report on customer loyalty last year found nearly one in five U.S. survey respondents used voice assistants at home and more than one-quarter would consider using voice-controlled assistants for everyday banking.

As of noon Friday, shares in Amazon were trading about 4% lower.

Join us at our annual Bank Innovation Ignite conference on March 11-12 in Seattle. See full details at BankInnovationIgnite.com.

Tags: AlexaAmazonAWSBlockchainBlockchainCapital OneEthereumExclusivePremiumSales & MarketingStripe
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