Why Amazon Might be Looking to Team up With Big Banks

Why Amazon Might be Looking to Team up With Big Banks

Why Amazon Might be Looking to Team up With Big Banks

Amazon was not immediately available for comment.

While people familiar with the situation tell the Journal the discussions are in early stages, such a venture would add yet another entity to Amazon's expanding portfolio, which now includes grocery stores and its digital assistant, Alexa.

But if Amazon does wind up offering checking accounts, it will be just the latest example of how the e-commerce giant is extending its tentacles into just about every aspect of its customers' lives. By controlling how Prime customers pay, Amazon can incentivize their loyalty and closely track their purchases. The companies together employ more than 1.1 million workers. However, a push by Amazon into financial services would not be surprising in light of its efforts to expand into areas such as health care, where it already is working with JPMorgan Chase and Berkshire Hathaway Inc.

That JPMorgan Chase & Co.is seemingly among the first banks Amazon has approached about the project is most likely no coincidence.

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Banks are also eager to partner with startup financial products, which often offer all the services of a bank without a traditional account.

To reinforce this goal, it seems Amazon may be expanding their reach into the financial sector.

Investors will be watching whether or not Amazon does wind up doing more deals with big banks - and maybe even getting Bufffett to assist in any joint ventures as well.

To be clear, this does not mean the retailer will be opening up their own bank.

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