BBVA is exploring the possibility of offering banking products on Amazon. The financial sector is ripe for disruption and there has been an explosion in innovative fintech solutions. More and more banks are betting on the use of platforms, applications, and digital banks, and other solutions designed to make finance easier. This reality allows BBVA to increase its digital offering on Amazon.
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BBVA’s strategy for using Amazon to offer its products
The financial institution’s latest strategy is to use Amazon to offer its Fintech products. It will start with the pilot program that integrates the alliance to sell aprons, tote bags, and chocolate, among others. The bank will use the program to feel out demand for fintech products on Amazon’s marketplace, potentially setting it up to sell its financial products on the platform in the future.
Amazon currently does not offer any type of Fintech services on its platform. BBVA knows this but reported that it is exploring a plan to make this possible. Although the company did not give details about the catalog they would seek to offer, the initial offer will likely include BBVA’s main products: loans and insurance.
Banks still have major problems with customer service. This has been evident on multiple occasions, with a large number of complaints and multiple failures recorded in their applications and platforms. A situation that could be exploited by Fintech or even technology giants like Apple, Google, Facebook or Amazon itself.
Technology companies are interested in offering finance solutions
With the proposal, BBVA would be putting itself ahead of other banking competitors. Amazon would not only keep a percentage for each transaction of the financial institution on its platform but would also open the doors to any bank that wants to sell its financial services.
Technology companies, such as Amazon, Facebook, Google, and even Apple, have shown interest in offering finance-related solutions, but there is still a great challenge facing Fintech, to reach the more conservative consumers who prefer an old-fashioned bank.
Amazon offers a way for fintech companies to win over cautious consumers. The key problem for most consumers is that hey are reluctant to take risks with their hard earned cash. Amazon is a well known and trusted brand and that name might be enough to push fence sitters into trying novel solutions.
This also represents another opportunity for Amazon to enter into yet another market. The giant already has a strong presence in commercial sales and cloud computing but by leveraging financial solutions they would be able to capture one of the fastest growing sectors in the world today.
Assuming the test with BBVA is a success it is likely that Amazon will look to partner with other fintech companies and this could rapidly accelerate the adoption rate of new fintech platforms.
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