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Amazon wants NIM

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Stephen Alpher, 5 Mar 2018, Seeking Alpha,Amazon coming for bank margins? here.

Among the discussions taking place in bank boardrooms of late: When will Amazon (NASDAQ:AMZN) show up to claim our margins? Maybe not too much longer, according to the WSJ, which reports Amazon as in early-stage talks to create a checking-account-like product.

The product, says the story, would be focused on those not yet swept up in the traditional financial services industry, but wouldn’t include Amazon actually becoming a bank. Walmart attempted the bank route 20 years ago, but the industry got then-Fed chief Alan Greenspan to shoot that down.

Kailey Leinz, 18 Dec 2017, Bloomberg, Amazon Gets Into Banking — and Other 2018 Predictions From CFRA, here.

CFRA bank analyst  Ken Leon says that online giant may acquire a small or mid-size bank in 2018 to gain a footing in the industry. That’s just one of his top predictions for the sector next year.

“This may either be a tactical move or a broad strategic jump into banking, as Amazon seeks more stickiness with consumers and small businesses in consumer lending such as auto loans, credit cards and home mortgages,” he wrote.

Penny Crosman, 8 Mar 2018, American Banker, Fintechs on Bank Amazon:it’d be a net plus, here.

King posited that Amazon would do a better job stewarding customer data than banks do today.

“Banks have had the same data for decades and, it could be argued, haven’t leveraged it effectively,” he said. “Amazon has the potential to dramatically change reward metrics and link your payments behavior to much better correlated purchase potential. In terms of trust, Amazon currently ranks as high as, if not higher, in the trust stakes and their technology stack has better data protection than 90% of banks in the U.S.”

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