According to reports, Amazon is currently considering offering its customers a current account product.
The Wall Street Journal reported that the online commerce giant is in discussions with JP Morgan Chase among other huge banks with regards to providing an Amazon-branded product.
However, the said move would not mean that Amazon itself is becoming a bank. However, it would make way for a white label arrangement with the biggest lender of the United States.
The Wall Street Journal said that discussions have also taken place with Capital One, a credit card lender in the United States.
Becoming a bank would enable the company to lend out money as well as taking in deposits. However, it would also expose the e-commerce giant to a far bigger regulatory requirement in a far more sensitive industry as compared to consumer retail.
Amazon has already established a small business lending arm. However, a move for retail bank accounts would indicate a new front in the expansion efforts of the company. Last year, Consultants McKinsey described Amazon and some other digital platform companies as a larger threat to banks compared to fintech firms.
Digital giants like Amazon – along with Google, Apple, Tencent, and Alibaba – have long been perceived as possible threats to the traditional banking industry, with massive technology budgets and an even larger pool of regular customers who would be more inclined to buy into their brands.
The reports say that Amazon would likely target younger people and those who do not yet have access to a bank account.