Page 28 - July 2018 Disruption Report

AMAZON EATS EVERYTHING JANJULAYRY20210818
Dan Ives analyst, who raised target price for the e-commerce giant from $1,500 to $1,850. “The Bezos strategic path, both on the consumer and enterprise fronts, [is] still in the middle innings of playing out and Amazon remains a ‘green light’ name to own at these levels.”
Amsaazorneisunlotw, thtuerncinogmtopbarincky-ahnads-mbourtialtr aountdletlsa,uinccluhdeindg tWohoollse tFhoaotdsa,i“mhigtholy: curated” Amazon Books, Amazon Go convenience stores and pop-up shops (for selling the company’s
1 Increase the number of merchants on Amazon, and enable
electronic gadgets), to make it possible for in-store shoppers to interact with digital platforms,
each merchant to sell more.
including Amazon’s cloud computing, machine learning, voice control, and logistics know-how, in all new ways. By using the “divine discontent of the customer as a North Star,” as Bezos puts it,
2 Increase the number of customers on Amazon, and enable Amazon is energizing a culture of relentless progress.
each customer to spend more.
3 Continue to reduce any buying/selling friction.
Which industries are next on Bezo’s list to disrupt? Some analysts expect the financial services and
hIenaplthacrarleleinl,dAusmtriaezs oanre hAamsazmona’sdneesxtetvaergreatlsfi. (nFtoertcuhnei,nJvoensathmanenVtasn,ian, 04/19/18; Payments,
0m4/o19s/t1l8y; fWooclfuSsteredeto, Wn oinlftReircnhatetri,o0n7/a1l4m/48a; rCkNeBtsC,(ISnadraiaSalnindasM, 0e2x/2ic6o/1,8; Business Insider, Kate
Taylor, Mary Hanbury and Dennis Green, 06/28/18; Fast Company, Noah Robischon, 02/13/17) among others) where partners can help serve Amazon’s
core strategic goal.
Amazon has built an array of banking products to service
the company’s ecosystem
In aggregate, these product development and investment
decisions reveal that Amazon isn’t building a traditional bank that serves everyone. Instead, Amazon has taken the core
In a sense, Amazon is building an array of financial services products internally—offering
components of a modern banking experience and tweaked them
customers everything from payments to lending to insurance and checking accounts—increasing
tthoesnumitbAermofamzoernchcaunststoanmdecrusto(bmoetrhs’mpaertriciphatinotnsinatnhdeAcmoanzsounmeceorsy)s.tem. Whiletheonline
retailing giant is not building a traditional bank that services everyone, Amazon has taken core
In a sense, Amazon is building a bank for itself — and that may
components of modern banking and structured them to meet the needs of Amazon customers—
both merchants and consumers.
be an even more compelling development than the company launching a deposit-holding bank.
AMAZON UNBUNDLES BANKING SERVICES
This report is a collection of everything we know about Amazon’s foray into banking, financial services, and fintech. We will be
© 2018 by Canfield Press, LLC. All rights reserved. www.canfieldpress.com 28
updating this brief on an ongoing basis as more relevant data, investments, news, and products are released.