Amazon is reportedly considering launching a checking account-like product with some big banks like JP Morgan Chase & Co. The company apparently wants to create a product that will attract the younger demographic, particularly those that are without bank accounts. Amazon is said to be in early talks with major financial institutions to launch such a product and while the product might be Amazon-branded, it wouldn’t necessarily involve Amazon turning into a bank on its own.
Citing people familiar with the matter, The Wall Street Journal reported today that Amazon is in early talks with major financial institutions and that there’s still a possibility that they might fall through. Whatever final form this financial product takes, we won’t reportedly see Amazon becoming a bank.
Amazon is believed to be have been thinking about moving into the finance sector for years now. The report added that Amazon wants to bring Amazon Pay to brick-and-mortar locations and this might be a step in that direction. Its decision to purchase Whole Foods last year may have been motivated by that as well.
Amazon hasn’t commented on this report as yet so it’s unclear just how accurate this information is right now. Nevertheless, if the company does decide to move into the finance sector, it wouldn’t really surprise anyone as it already operates in a diverse range of sectors.
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