Amazon talking to banks about checking account-like product

Posted March 06, 2018

The concept is still in its early stages, and it's unclear how exactly it would function, the Journal reported.

For instance, the sources said "the talks with financial firms are focused on creating a product that would appeal to younger customers and those without bank accounts". Walmart attempted the bank route 20 years ago, but the industry got then-Fed chief Alan Greenspan to shoot that down. In addition, almost 50 percent would use a savings account if Amazon were to offer one to its clients. The move could reduce or eliminate Amazon's current need to pay banking partners and payment processors to handle transactions.

Sie Soheili, a spokesman for Capital One, and JPMorgan spokeswoman Trish Wexler didn't immediately respond to phone and email requests for comment.

It wouldn't be Amazon' s first foray into the financial sphere.

A survey conducted by LendEDU found that about 45 percent of Amazon customers would be open to the concept of Amazon acting as their primary banking account, CNBC said. This includes buying up Whole Foods past year and recent plans to offer its own shipping service, which would reduce its need for United Parcel Service, Inc. Sure, Amazon has its own rewards credit card, but that's par for the course for any major retailer.

News of this expansion is a familiar tune to anyone that has been keeping up with, Inc.

Buffett also owns big stakes in Bank of America, American Express, Bank of New York Mellon and Goldman Sachs.