Amazon is a just retail/tech company, right?
According to this article, it looks like finance is the next stop for Amazon:
Amazon.com Inc. AMZN is in talks with big banks including JPMorgan Chase & Co. about building a checking-account-like product the e-commerce giant could offer its customers, according to people familiar with the matter.
The effort is still in its early stages and may not come to fruition, the people said. The talks with financial firms are focused on creating a product that would appeal to younger customers and those without bank accounts. Whatever its final form, the initiative wouldn't involve Amazon becoming a bank, the people added.
So, does this mean that Amazon wants to be a bank without actually being called a bank? The article goes on to say that Amazon is looking to enter banking as a "partner" rather than a "disrupter" since it wants to avoid "capital rules and regulations".
Either way, Amazon has got Wall Street's attention:
The company's latest push also answers a question that bank executives have been asking with increasing worry: When will Amazon show up on their turf?
With millions of customers, troves of data, access to cheap capital and seemingly unlimited leeway from its investors to enter new businesses, Amazon is a fearsome competitor. Its more-than $700 billion market value eclipses the combined value of JPMorgan and Bank of America Corp , the two biggest U.S. banks.
I think this just adds to the idea that Amazon wants to dominate every aspect of our lives. Given its massive size and valuation, Amazon will certainly be able to compete with other banks if it chooses to, whether as a partner or by itself. Wall Street banks may be "too big to fail" but Amazon is bigger.
Do you think Amazon will be the next BB? Or is this just a harmless "partnership"?
Assuming Amazon follows through, do you think this will work out or do you think it will fail like the Sears and Dean Witter merger?
Let me know what you think.