Do consumers really want to bank with Amazon?

There is a lot of discussion in the banking industry regarding the potential and possible impact of Amazon’s entrance into banking. To recap some of the prevailing perspectives:

“Amazon is under pressure to keep increasing revenue, and financial services is a large pool they can go after.”
— Asheet Mehta, McKinsey

“Amazon may acquire a small or mid-size bank in 2018 to test the regulatory waters and gain a footing in the industry. This may either be a tactical move or a broad strategic jump into banking, as Amazon seeks more stickiness with consumers and small businesses in consumer lending such as auto loans, credit cards and home mortgages.”
— Ken Leon, CFRA

“By no means will the Bank of Amazon or Bank of Google be taking direct deposits to finance the apartment complex next door anytime soon. While Amazon [brings] capital to an underserved market, their business strategies are still a far cry from an existing industry being crushed by a tech giant.”
— Eric Byunn, Centana

What Do Consumers Think?

Cornerstone Advisors conducted a survey of 2,015 US consumers between the ages of 21 and 72 who own a smartphone and have a bank account, and asked respondents what they would do if Amazon did two things: 1) Offered a free checking account, and 2) Offered a checking account bundled with other services like cell phone damage protection, ID theft protection, and roadside assistance, for a fee of $5 to $10 a month.

 

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