Question of the Day: What percent of Amazon customers would use Amazon as their primary bank account?

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Mar 06, 2018
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Checking Accounts, Current Events, Question of the Day

Answer: About 45%

Questions:

  • Would you consider using Amazon for your primary banking needs (checking and saving)? Why or why not?
  • Why do you think Amazon wants to get into financial services?
  • How do you think Amazon will try and differentiate themselves since there are so many banks to choose from?  
    • Do you think they will be successful? Explain.

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (from CNBC):

The survey also explored shopper's openness to Amazon disrupting the banking world. About forty five percent were amenable to using Amazon their primary bank account, while 49.6 percent would use a savings account created by Amazon.

Why checking accounts and why now for Amazon to get into banking world? This article from CNBC offered some insights: 

This is the latest move by the e-commerce giant to solve one of the biggest barriers to shopping on its website: lack of a credit card. More than a quarter of U.S. households have no or limited access to checking and savings accounts. These so-called unbanked and underbanked households rely heavily cash or checks to fund their purchases, making shopping online difficult. Unbanked doesn't necessarily mean unconnected, about 6 in 10 unbanked consumers have a smartphone, according to the Pew Charitable Trusts.

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.