Amazon.com, Inc. (NASDAQ:AMZN), the online retail giant is reportedly considering to launch a banking product that would attract the teenagers known as the Generation Z According to the latest news from The Wall Street Journal, the company recently held lengthy discussions with the JPMorgan and other leading banks on how to develop a product known as a white-label checking account service.
The company is currently leading the retail sector and it has taken control of almost all the households in the US and other regions across the world. With the firm’s banking ambitions, the market analysts such as the McKinsey & Co., are worried that Amazon could take over the financial sector too if not carefully scrutinized.
Amazon has studied the market for a long time and has realized that General Z lack various banking services that target them. Most teenagers do not own credit or debit cards and may not have their own bank accounts despite the key role they play in shopping of the items in the retail stores. Furthermore, the target group has irresistible tastes and preferences for purchasing items online through Amazon platform.
Therefore, Amazon has resulted to collaborate with giant banks such as JPMorgan Chase & Co. and Capital One Financial Corp. to develop a unique product that will target the teenagers. The product will make it easier for shoppers to purchase items using the items online using the credit or debit cards.
Amazon is renowned for its aggressive marketing strategies. According to Bloomberg, the company offered over £3 billion loans to more than 20,000 merchants that use their e-commerce platform. The motive behind the launching of the merchant program is still not clear since Amazon is not categorized in the financial sector.
Amazon’s move into tapping the consumer financial services could become epic in the near future. The company has the potential to be the leading online retailer that has a direct influence on the consumer’s wallets if the proposed financial products are developed.