Amazon bank could have 70 million customers in five years
Summary
Amazon does not have the burden of an expensive branch and contact centre network, which we estimate comprises roughly 40% of a North American retail bank’s costs on average.”The likely model would see the bank partner hold the deposits and meet regulations, while Amazon would focus on customer experience and product offering.“Beyond direct cost savings, we could imagine Amazon’s banking services growing to more than 70 million US consumer relationships over the next five years or so, the same as Wells Fargo,” said Bain & Co.“If the big tech firms like Apple, Google, Microsoft, PayPal, Amazon and others wish to get into specific financial services, I think they have the power to beat the banks .”While the tech firm will be the brand and make decisions on products and interest rates, banks could provide them with a “white label” service in the back end.