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Treasury

Amazon provides glimpse of the future of banking

Transaction automation and open banking can help banks to strengthen customer relationships, especially as fintechs are encroaching on their traditional services – but the sector has been slow to adapt.

amazon-ongoing-780

Amazon is reportedly in talks to offer bank accounts to its customers. 

The move will likely not require the online behemoth to obtain a banking licence, as account holding will be handled by JPMorgan. The company is also reported to be in talks with credit-card provider Capital One.  

Bragi-Fjalldal-Meniga-160x186

Bragi Fjalldal,
Meniga

Bragi Fjalldal, CMO, vice-president, product and business development at banking software company Meniga, says the move could finally be a wake-up call to the banking sector.

“Amazon are about to prove that it is possible to disrupt banking without a banking licence," he says. "If Amazon asks a bank to white-label their current account on favourable terms – who is going to say no to that? If this move by Amazon is a sign of what is to come, banking may look very different a few years from now.”  

The US-based online retailer has already moved into finance by offering loans to sellers on its Amazon Marketplace. It has provided in excess of $3 billion in financing since the 2011 launch.


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