Amazon is in talks to create a checking-account-like product with big banks such as JPMorgan Chase, the Wall Street Journal reported, citing people familiar with the matter. It added that the process is still in its early stages and may not be completed.
Shares of U.S. big banks came under pressure in early trading on Monday from a broader selloff in the market and the WSJ report, Adam Sarhan, CEO of 50 Park Investments said.
“Whenever you see a headline show up Amazon coming in and offering checking accounts with JPMorgan that triggers investors to sell first in the face of uncertainty and ask questions later,” he said.
In January, Amazon, Berkshire Hathaway, and JPMorgan said they will form a company to cut health costs for hundreds of thousands of their employees.
Amazon’s talks with financial firms is an attempt to create a product to attract younger consumers, mainly those without bank accounts, the WSJ report said, adding the initiative would not see the online retailer become a bank.
The e-commerce giant has been contemplating getting into the finance sector for years. The company is trying to bring Amazon Pay to brick-and-mortar stores and is likely to begin with Whole Foods, the report said. Amazon and JPMorgan were not immediately available for comments.
