Is Loyalty the Key for Amazon Becoming a Successful Bank?

65% of Amazon Prime respondents are willing to try a free online bank account offered by Amazon. This data is according to a new survey conducted by Bain & Company which found that Amazon has a huge advantage over the incumbent banks: loyalty. Part of this loyalty stems from Amazon’s excellent customer service and policies. Customers have a trust with Amazon that does not currently exist in banking.

With this trust comes an incredible amount of data around purchasing decisions, credit cards on file and integration across all sorts of devices from smartphones to Alexa devices.  Amazon Prime boasts 90%+ renewal rates which connects to a majority of households in the United States. According to data, Amazon’s customers control 75% of US household wealth and account for about 75% of the wealthiest households’ assets making them valuable target banking customers.

It is expected that Amazon will partner with a bank to offer bank-like services which may initially be targeted at young adults. With the acquisition of Whole Foods, Amazon has the potential to reach customers where they would like to be served, even if that means offline. The full results from Bain & Company provide additional insights into Amazon’s customers and the willingness to embrace Amazon as a bank.

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