The retailer is said to be working on a product to establish banking services for customers using third-party providers

The next step for Amazon may be financial services. According to The Wall Street Journal, the company is reportedly working with major banks like JP Morgan Chase and Capital One Financial to create a checking account-like product aimed toward customers without bank accounts, like millennials and younger people in general.

While the project is still in early phases, it has already led to concerns about industry disruption. However, Bank of America analysts noted that the service seems aimed at simply increasing Amazon's internal customer engagement, as well as lowering the fees the company pays to financial firms.

Amazon has been expanding laterally into many different industries through moves like its acquisition of Whole Foods in 2017 and development of its own shipping service. Perhaps this venture into financial services points to a need for streamlining the banking industry as well, incorporating it into people's greater consumer lifestyle.

Amazon


Lead image: Young woman signing up for Amazon Prime via Shutterstock

The next step for Amazon may be financial services. According to The Wall Street Journal, the company is reportedly working with major banks like JP Morgan Chase and Capital One Financial to create a checking account-like product aimed toward customers without bank accounts, like millennials and younger people in general.

While the project is still in early phases, it has already led to concerns about industry disruption. However, Bank of America analysts noted that the service seems aimed at simply increasing Amazon's internal customer engagement, as well as lowering the fees the company pays to financial firms.