Amazon is unequivocally one of the prominent business names in the modern world. In fact, the US-based multinational technology company is remarkably known for its wide range of services with the most dominant being its e-commerce marketplace, which is also the largest in the world. Apart from having a major focus in e-commerce, the company is taking extra steps to strengthen and broaden its financial services.
Acting as a director of a London-based venture capital firm, Matthew Ledvina is keeping a continuous track on the trends of the fintech industry. Through the firm, he financed several startups and medium-scale businesses, predominantly the ones working on financial technologies. According to him, Amazon is one of the major companies that are propelling the growth of fintech.
Amazon’s Expansion of Financial Services
Observing the Amazon and its strategies over the past years, it is quite evident that the American tech giant is quite keen to expand its financial service portfolio. While there is no information onwhetherthe company has any plan to become a commercial bank anytime soon or not, incorporating new financial services within its framework can possibly be a move to strengthen itself.
Within a few years, the company has introduceda wide number of financial services related to online payments, lending, and insurance. Many experts believe that the intention of all these services is to support its core aim, which is toaugment the number of Amazon users.The multinational company is investing huge amounts of money in fintech projects for supporting its financial services.
What Amazon Want to Achieve With Its Financial Services
After closer inspection, it can be concluded that Amazon’s financial services backed by fintech are intended to enhance the banking experience of the users. Moreover, the financial products and services aim to increase the number of both merchants and buyers across the e-commerce platform of Amazon.Additionally, the extra financial tools will lessenthe friction/conflicts among buyers and sellers.
Fintech at the Core of Financial ServicesOffered by Amazon
Being a tech giant, it is quite obvious that Amazon’s prosperity depends upon the technology that it implements to serve its customers. Indeed, by looking closely, it is easy to identify that the company’s financial services are highly dependent on the fintech. Cashless payments, digital wallet, virtual bank account are some of Amazon’s financial services backed completely by fintech.
Amazon Pay is one of the most successful services offered by the multinational firm, which allow users to make online payments. In addition, the present day Amazon Pay also allows customers to have a digital wallet, which can be loaded with cash, which later can be used to make payments.
There are several products offered by the tech firm that serves different purposes. For instance, the Amazon Cash dedicatedly allows users to deposit and withdraw cash from a digital account, the Amazon Lending is the lending division that provides credit to the users and works in conjunction with many local and international banks, and the Amazon Allowance service allows parents to allocate money to their children and supervise what products they are buying.
All the financial services that are deployed currently by Amazoninvolved huge fintech investments that led to the development of the fintech industry.Moreover, the company is also pretty clear that it will continue to exploit the financial technologies and expand its business areas in the upcoming years.Read more from Matthew Ledvina’s on his blog, or follow him on Facebook, Vimeo for more news and updates, subscribe to Matthew Ledvina on YouTube.
