Paul LaMonica (CNNMoney, Amazon)

00:06:48

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This segment financial exchanges brought she buys you rent your landlord take advantage is you rent a fully automated online rent collection tool that is free for landlords and accounts of just being bank can always free for tenants. Now a collection of local banks are often this unique program including leader bank and stone sign up and have rent payments direct. Deposited directly into your account call 7816418691. Today or visit easy rent dot net. For more information member FDIC. We're joined now by Paula Monica from CNN money to tell us what area is left for Amazon to expand into I thought that they had already conquered the world apparently I was wrong but this might view last step. I thanks for coming on Paul. Thank you know a problem that is very ignorant report earlier this week catalyst or journals suggesting that Amazon is. Working with these assertions burst into JPMorgan Chase Capital One among others to you know develop checking accounts for an Avaya customers can potentially Alter. You know financial service products as well Amazon did not comment to me get Morgan chase Capital One did not out. Any comment but you know that hasn't stopped people are speculating about what next being in company yet you'll be consulting firm. They're estimating that Amazon could add seventy billion banking customers. If they wind up going company's services that the that the perspective it would make them about a large ball bark out. And so I mean. I get I got the whole foods acquisition made sense to me I kind of get what they're doing in health care that also makes sense to me. Checking accounts are not high margin business now if they expanded into. I banking or financial advisory services or investments. I'd it was Acadia and can I can see where they're doing here but what's the where's the money being made on sending a checking account. Yeah I'd worry. Great observation there but I think the new machine. We Amazon potentially getting into huge financial services is. Not necessarily the you know having high margin business is chaotic section. I'm doing that despite its. It's beat Bucyrus the story you know could give them more seamless relationship. With their customers that keep all act. Being company did their report they noted that you know when you looked at. Who would be. You know customers that they surveyed. That they would try in terms of attack company. You know having financial services run from them. Based site I am responsible ones that you trust Amazon and many of the younger customers you know when he worked for eighteen to 24. His college kids struggling to get a job after college some of them may be using more of you know cash. Hash out. It would debit cards to a paper things because they're still leery of what happens you know to their parents couple years ago and they are Great Recession so the notion that maybe Amazon could keep them also an easier way to papered things. You know there could be some not credence. Paul this is John what you're what's your take on Amazon's decision to offer people on Medicaid. A 40% discount on prime memberships is striking was a rather cynical way of once again going after Wal-Mart. It's all respect I guess you could make that argument I think that Amazon clearly he now wants to demonstrate. You know to consumers called. Maybe the green. You know lie in many different parts of via the economic. Strapped. Thank you count on it not just something war Leo and middle class and and the wealthy and that they are willing to offer discounts to people that need have not been any financial resources and I think he could have that cynical argument that yet another way to go after. The kind of BB stereotypical. Or and Wal-Mart customer requested of him Wal-Mart obviously fighting back. It's going after Amazon yeah spotlight acquisitions that are war you'll catered to do colonial and urban customers. Yeah I mean I was thinking or guessing if there's one segment that Amazon might have trouble attracting right now it's. You know lower income knocking it paid subscription the and may be deleted democratic hard. Well yeah offer free champion count for a low balance customer you might have a pretty good solution does does Wal-Mart respondents say ya if you have a BMW or Lexus will give you 10% ownership and yet the prime minister ridiculous. Well it is interest stories since they were talking about where Amazon's gonna go next just about every week pol will have you on next and they had to make another one of these announcements appreciate it there's no doubt heard. If it. Is so I mean pretty crazy. I know it's not crazy I know it's not crazy which we should expect you know we should look at every single sector of the economy and say. How is Amazon going to play a role in this sector. Next we've architect of health care we tackled. Food that we tackled banking now let me ask you this might we were talking about furniture wrist yesterday do you think way fares a candidate to be bought by hands on. Why they don't need a Needham why rolled right over they can be a partner. And they can make Amazon pin him as a could have them on the website them and make make a feet. Based and everything that sent their way that's kind of Amazon's well more matches absorb them. I don't think they need technology I don't I don't think that way fare has and the any technology and games on could not easily replicate changes crushed. By another Amazon came out their own line of furniture to Bob Rivet and yes don't and some open I don't know. Com little little pricey. But stole it it's a step in the right direction in terms of furniture offerings is the only competition there the the only competitive advantage can think that we affair might have at this point it is the network. Dues that they have their buyer group today in game toy ideas on camera. I would be concerned if our way fear about tomorrow like Berkshire Hathaway which dwarf stand by for the largest furniture company in the United States including. A small presence would Jordan's here in our backyard but all over the country. Young has nothing to stop Warren Buffett to say we want to just crush you. And do this overnight with scale that would just be able to demolish them so I'm not sure there's a whole lot proprietary we've fixed it real well but you know this in the competition. Deb Gary and very well could be the the banking peace is very very uninteresting to me because when you have someone's bank account you learn to me they already know so much about their customers. From you know what they're searching on Amazon's website if you also have their banking information how much more information you going to be able to garner and really Taylor. You know sales to that customer knowing OK I know your Internet search history and I know exactly where you're spending your money no question about that.
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