It is not surprising that Amazon plans to expand its operations in yet another industry. After become it has successfully dominated the online retail market and retail market, it strives to expand the value for its customers. This means that Amazon could confirm its proactive strategy once again if it goes forward with the plan for opening Amazon Bank. Namely, Amazon is planning to enter the banking industry through partnership with one of the biggest banks in USA. A research shows that if Amazon makes a successful partnership in providing basic banking services to its customers or banking services in general, then it could become one of the largest banks in USA.
The so called Amazon Bank becomes reality, it could mean that Amazon might start providing a bank account or checking account or product with similar characteristics to its customers. It could be said that the entrance into the financial industry could provide numerous benefits for Amazon customers. The company itself would see major benefits as well. The partnering bank or financial institution would also see positive impact, if we take into account Amazon’s customer base.
It could be assumed that potential benefits for customers might be:
- Lower transaction fees;
- Faster transaction;
- Easier buying process since the banking activities will be offered in-house by the company;
- Better customer experience.
We will wait and see if the so called Amazon Bank become reality. Based on the past actions took by Amazon or more precisely actions performed by Jeff Bezos it could be said that something is going to happen. We have witnessed the continuous plans of Amazon to provide higher value to the customers. Thus, there is no doubt that potential Amazon Bank will offer additional value. We just have to wait and see the way Amazon is going to offer financial products to its customers.