Amazon or no, banks are in for big changes, one analyst says
By Andrea Riquier
What does the “Amazon effect” mean to the banking industry? In the years since the 2008 financial crisis, banks have spent tens of billions on compliance, cleaned up their balance sheets, and tried to convince regulators, legislators, and ordinary Americans that they’ve learned their lessons. …Now it seems the industry-slayer has its sights set on banking, as well. The Wall Street Journal reported Monday that Amazon was in talks with JPMorgan, and others about creating a product similar to a checking account. Karen Petrou, managing director of Federal Financial Analytics, a Washington-based consultancy, told MarketWatch that the news was no surprise. Petrou called such a step “the natural evolution for a platform company like Amazon or Google into financial services” because of the troves of customers – and data on those customers – the companies have.