Amazon may be adding banking to the roster of services it offers.
While discussions are still in the early stages, the concept seeks to attract younger consumers—particularly those without bank accounts. The services included in the product are still to be determined, including whether a user could write checks or pay bills with the new account. Nevertheless, the product “may not come to fruition” according to the Journal’s sources. But should it eventually roll out, it would not involve Amazon becoming a bank.
Amazon already offers a co-branded credit card with J.P. Morgan, but an effectively “own-branded” product could be even more lucrative for the retailer. The Journal suggests that it could both reduce the fees Amazon pays to financial firms and give it access to additional customer data on income and spending habits.
This could be the third partnership between Amazon and J.P. Morgan. In January, Amazon announced a partnership with the bank and Berkshire Hathaway to develop a not-for-profit healthcare venture to lower costs for its U.S.-based employees.