Amazon may try its hand at banking
WASHINGTON (Sinclair Broadcast Group) - Amazon is considering expanding services to including banking, according to a new report by CNN Money.
The company is in discussions with JPMorgan Chase & Co. and Capital One Financial Corp. to offer a product geared for young users that may not have banking accounts or used them less frequently. It is not clear if Amazon will look to compete with major banks or partner with them. The project is still in the early conceptual phase.
A report by the Wall Street Journal stated that developing a banking service could allow the tech firm to go around hefty fees they currently pay to financial firms. The report also states that Amazon's $700 billion market value could set the company up to be a significant competitor for existing banks.
Amazon has explored other financial ventures such as Amazon Pay, which offers customers fast and secure options for checking out quickly and through mobile devices as well as digital platforms.