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Amazon Gets Into Banking, and Other 2018 Predictions from CFRA

Amazon Gets Into Banking, and Other 2018 Predictions from CFRA
(Dreamstime)

Monday, 18 December 2017 05:06 PM

Amazon.com Inc.’s entry into the financial sector could come sooner rather than later. Bankers beware.

CFRA bank analyst  Ken Leon says that online giant may acquire a small or mid-size bank in 2018 to gain a footing in the industry. That’s just one of his top predictions for the sector next year.

"This may either be a tactical move or a broad strategic jump into banking, as Amazon seeks more stickiness with consumers and small businesses in consumer lending such as auto loans, credit cards and home mortgages," he wrote.

Amazon has already ventured well beyond its internet roots, including establishing a physical footprint in the grocery business with its acquisition of Whole Foods Market Inc. earlier this year. The company’s shares have climbed nearly 60 percent year-to-date.

Leon’s other top calls for the banks next year include investment banks deciding to combine their fixed income, commodities and currencies trading businesses, and earnings accelerating in the second half as the yield curve steepens and banks see higher net interest income. Of his 10 predictions for 2018, the potential move by Amazon ranks third on the list.

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Amazon.com Inc.'s entry into the financial sector could come sooner rather than later. Bankers beware. CFRA bank analyst Ken Leon says that online giant may acquire a small or mid-size bank in 2018 to gain a footing in the industry. That's just one of his top predictions...
amazon, prediction, bank
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2017-06-18
Monday, 18 December 2017 05:06 PM
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