I’ve talked for a long time about how Amazon will disrupt financial services and banking. Clearly not if, but when it comes to pass, how it uses AI to help consumers investest and manage their assets will be a huge key to that.
Google probably has more potential to disrupt healthcare with AI than does Amazon at this point. But that’s not the case for the financial services. Amazon’s partnership with the likes of JP Morgan Chase on chequing accounts points to this likelihood; it’s only matter of time before Amazon makes a serious move into financial services. The Cloud, E-commerce, Grocery, gadgets, the Voice-AI interface — great !— but Amazon should go after Wall St. itself.
This is, simply put, Amazon has the most insight into how AI can help personalize what consumers actually want to purchase. That kind of big data has applications in banking, asset management, real estate and so forth. A Cloud-Commerce-AI platform like Amazon can dream big in the real-world. Even as its presence in advertising and AI increases rather organically simply as an extension of what it does.
Analysts and Wall St. like to prophesize on what Amazon will do next. Oh it’s pharma, no it’s the travel industry, no it’s x, y and z. Amazon is that company that will invariably swallow the likes of Netflix, Facebook and probably Walmart too. If that sounds crazy in 2018, check back on this article in just five years time, in 2023.
Financial executives must be crazy if they think Amazon won’t one day come for them. Now if you placed $1,000 dollars in a company in 2007, guess how much you made in 2017?
If FAANG is disruptive, not all of them will survive. It’s looking like Amazon and Alphabet are the only sure bets. I’m talking about decades here.
Amazon in Investing and Asset Management?
Research firm Bernstein analyzed whether it would make sense for Amazon to add wealth management to its stable of services. The short answer is yes: “We think Amazon is well placed to disrupt the industry and, given the industry’s profitability, may well be minded to do so,” Edward Houghton wrote in a research report this week (Quartz).
Amazon’s pivot into wealth-management is damn near inevitable. Why wouldn’t Amazon Prime offer banking and wealth management options soon? On the road to Amazon becoming a Biotech and pharma giant, money is the path to supremacy. What if your AI knew all about people’s money? You already know what they like to spend, now why not automate AI to help them manage it well?
Wall Street are bullish on Amazon because deep down they know Amazon will replace them. The company has been looking for ways to enter the financial services to continue its growth momentum. Wealth Management is going the way of AI, it may as well be Amazon.
- Wealth Managers and consultants will be disrupted
- They are already under tremendous pressure due to rapid evolution of AI and tools like machine learning
- Amazon stands the most to gain by disrupting the space, low-hanging fruit for Bezos if I do say so myself.
Amazon is the Future Babylon of Data’s Treasure Droves
Business Insider Intelligence estimates that 10% of all global assets, or $8 trillion, will be managed by robots by 2020, significantly up from $200 billion in 2016. Amazon has the best chance of any global corporation outside of China to have a 360 degree data set on consumers. Marrying retail, financial and health data means eventually Amazon can be the A-Z of post-capitalism.
Amazon is a Sumerian platform of AI and customer data ideally suited to disrupt wealth management, investing, banking and financial services as a whole.
Amazon’s digital assistant Alexa has the ability to answer economic questions, thanks to a partnership with UBS Wealth Management. My friends, this is just the beginning.
We know their partnership with JP Morgan means essentially that a branded (Prime) checking account would help it to provide further benefits to Prime members, persuading them to buy more on Amazon’s e-commerce platform. Amazon’s apps will supersede Facebook’s simply because they are more useful, convenient and pragmatic. According to comScore’s 2017 US Mobile App Report, indeed, Amazon App is more popular among the cross-section of GenZ & Millennials (aged 18–34) as compared to the likes of Gmail or Facebook.
Amazon is nearly perfectly positioned now to disrupt investing, asset-management and finally financial services as a whole, replacing people with AI.