Amazon is a leading online shopping website, where you find almost everything you need in your shopping. You can buy mobiles, cameras, watches, apparels, laptops, e-gift cards online, and groceries and so on. It has been easier for consumers to place an order from wherever they are, with better choices and facilities. In addition, now you can even watch movies and television shows on Amazon Prime as well as listen to your favorite songs on Alexa and may have Amazon credit card.
Very weird question, have you ever thought of banking with Amazon? Opening a saving account or get CD (certificate of deposit) from the Bank of Amazon. There is end number of question arising with regards to Amazon banking. Anyways, if this question goes to a millennial, surprisingly the answer would be “Yes”. As far as banks are concerned lots of financial crisis going on, where the millennials are financially struggling to overcome this crisis. This has led a mistrust with the financial service industry.
When you think about the next generation, they believe in the brand, that would provide better financial services offered from Google, Apple, Amazon, PayPal, Square, and so on for its trusted technological brand, instead of going for the national banks. In simple words, millennials don’t trust their banks instead they trust these companies. It is like going to the dentist is much better than listening to what the banks are saying. Moreover, Amazon might offer additional financial services to their customers through deposits and loans.
Further, Last year Amazon took over the whole food, that had a major impact on the stocks of other grocery stores like Kroger, Walmart, and Target. In fact, Amazon already had its own mini grocery business, Amazon fresh but after acquiring the whole food it has led a threatening sign to the market players.
Moreover, Amazon has announced its partnership with the Bank of America, along with small business credit program that provides $1 billion in loans. Whereas, Amazon already lends its merchants which will be probably increasing in the future. Through tracking their transactions, they know what the customer wants, what they like, and the amount they are willing to spend on. Keeping into consideration, only the tech companies can manage the risk of understanding the customer’s financial as well other requirements rather than the bank.