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Amazon plans checking accounts for customers via JP Morgan, other banks

07 March 2018

Amazon is looking to partner with Wall Street's top banks to offer a "checking-account-like" product for customers, The Wall Street Journal reported on Monday.

The e-commerce giant is discussing with financial institutions including JP Morgan Chase to help launch the accounts, aimed at younger customers and people who have no banking accounts, the report said.

The report also cited sources to say the discussions are in early stages, and a venture of the kind would add to Amazon's expanding portfolio, which now includes grocery stores and its digital assistant, Alexa.

"The underlying goal is to further grow its Prime membership through cross-selling into existing J P Morgan customers and this could lead to more initiatives down the road," Dan Ives, chief strategy officer and head of technology research at GBH Insights, told CNBC in an email. "Ultimately, Amazon is in fifth gear, trying to double down on the consumer and the finance vertical looks like the next step (through partnerships) of adding to the Amazon flywheel."

According to a survey conducted by LendEDU which released Wednesday, around 45 per cent of respondents were open to using Amazon as their primary banking account, while 49.6 per cent would use a savings account created by the company.

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