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Amazon coming for bank margins?

Published 03/05/2018, 07:36 AM
Updated 03/05/2018, 07:36 AM
© Reuters.  Amazon coming for bank margins?
  • Among the discussions taking place in bank boardrooms of late: When will Amazon (NASDAQ:AMZN) show up to claim our margins? Maybe not too much longer, according to the WSJ, which reports Amazon as in early-stage talks to create a checking-account-like product.
  • The product, says the story, would be focused on those not yet swept up in the traditional financial services industry, but wouldn't include Amazon actually becoming a bank. Walmart (NYSE:WMT) attempted the bank route 20 years ago, but the industry got then-Fed chief Alan Greenspan to shoot that down.
  • Amazon, of course, has millions of customers, access to cheap capital, and tons of data, making it a potentially fearsome competitor to the banking industry. The good news for lenders: The company for now appears to be trying to get its foot in the door as partner, rather than competitor.
  • Amazon a few months ago asked a number of banks for proposals about a hybrid-checking account. Among pitches currently being mulled are ones from Capital One (NYSE:COF) and JPMorgan (NYSE:JPM).
  • Other names of interest: Bank of America (NYSE:BAC), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), U.S. Bancorp (NYSE:USB), PNC Financial (NYSE:PNC), KeyCorp (NYSE:KEY), Regions Financial (NYSE:RF).
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  • Now read: JPMorgan Chase (JPM) Investor Presentation - Slideshow


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