to customers, and some of the bank's executives described the product as the "most successful credit card launch ever," per the FT. As Goldman bids to swell its retail business, which accounted for less than 3% of revenue last year, the product gives it direct access to Apple's 100 million US customers — which is particularly valuable, considering the bank lacks the physical branch network its legacy bank rivals have.
And by partnering with a banking incumbent equipped to handle the regulatory requirements around lending, the tie-up presents Amazon with limited risk and drain on its resources. Amazon already lends to small businesses that use its platform, with its balance sheet at the end of 2019 standing at over $863 million, per the FT. Yet, the further it pushes into lending, the greater the regulatory and compliance scrutiny — and associated costs — it'll face.
Big tech's push into financial services is often framed as a threat to incumbent financial institutions — but fintechs are likely to be the biggest losers. Given the size of firms like Amazon — it's around 12 times bigger than Goldman by market cap, for instance — their push into financial services is viewed as an existential threat to established FIs.
So, we're likely to see a growth in partnerships between these firms and players like Goldman. And for fintechs, this spells trouble: The tech capabilities of Amazon and its peers combined with the regulatory know-how of incumbent FIs like Goldman is a powerful force.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Amazon is testing a marketplace of loans from Goldman Sachs, other banks - Business InsiderLeaked screenshots show Amazon is partnering with Goldman Sachs and other banks to launch a new lending marketplace for sellers As long as it isn’t leaked screenshots of his dick, we’re good. techinsider JeffBezos Great! When are you going to start paying taxes? I have a problem with the 'leaked' part here though. Everybody and everything has the Right to privacy.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Goldman Sachs is in talks to offer SMB loans through Amazon - Business InsiderGoldman Sachs is in advanced talks with Amazon about the possibility of offering small business loans on Amazon's lending platform. Sounds like a good idea. Might as well focus on something positive. I wrote a paper on stream-lining Intellectual Property to producer to finance. If Intellectual Property holder and Manufacturing agree it's just a signature for finance from there.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Amazon creating a fleet of 100,000 electric delivery vehicles - Business InsiderAmazon is creating a futuristic fleet of 100,000 electric delivery vans, with Alexa and routing software built-in — see what they'll look like Amazon a hundreds of years ahead of her counterpart!
Source: BusinessInsider - 🏆 729. / 51 Read more »
Jeff Bezos dumped $1.8 billion in Amazon stock after its share price skyrocketed - Business InsiderAmazon shares saw a huge spike last week after the company's triumphant 2019 earnings report, increasing Bezos' personal wealth by $13.5 billion. Needed some walking around money I guess. He is a divorced man who need cash . That's how you turn shares into cash...
Source: BusinessInsider - 🏆 729. / 51 Read more »
Deliverr used this pitch deck to raise $40 million to challenge Amazon - Business InsiderThe 25-year-old founder of startup Deliverr used this pitch deck to raise $40 million to challenge Amazon by helping online retailers offer free shipping
Source: BusinessInsider - 🏆 729. / 51 Read more »
Goldman Sachs in talks with Amazon to offer small-business loansGoldman has begun building technology to facilitate the offering of loans to small and medium-sized businesses over Amazon’s lending platform, sources said. First! can you post something about johnnyorlando ? He's a singer, actor and much more! He won the Best canadian Act and he's such a great singer. He lives in LA atm and here's some pics you can post ;) Omg. Amazon is taking over the world
Source: latimes - 🏆 11. / 82 Read more »