Powell stresses the central bank's independence in a speech that comes amid continuous pressure from the White House to cut interest rates.The Fedread more
Melania Trump said in a tweet that she is "excited to have Stephanie working for both sides of the @WhiteHouse."Politicsread more
Acting Customs and Border Protection Commissioner John Sanders will resign amid furor over the Trump administration's treatment of migrant children.Politicsread more
Investors are piling into gold, sending the precious metal to a six-year high, and analysts think the commodity has established a base to go even higher.Marketsread more
More than 300 companies are talking to government officials in Washington about the how detrimental the trade war is.Marketsread more
The Conference Board, a business research group, on Tuesday released the June update for its consumer confidence index.Economyread more
Massachusetts Institute of Technology President L. Rafael Reif warned the MIT community of "serious long-term costs" to in an email to the school community Tuesday.Technologyread more
These are the stocks posting the largest moves midday.Market Insiderread more
The yield on the benchmark 10-year Treasury note fell below 2% on Tuesday as investors looked for safety following the release of much weaker-than-expected confidence data.Bondsread more
Trump slams Iran on Twitter for issuing a "very ignorant and insulting statement" after the U.S. slapped fresh sanctions on Tehran.Politicsread more
Investors plow into the precious metal amid the prospects for lower interest rates, a softer global economy and increased geopolitical tensions.Marketsread more
Banks, you've been warned.
About two-thirds of Amazon Prime members would try a free online bank account from the e-commerce giant, according to a report from consultant Bain & Co. That's considerably higher than the percentage of regular Amazon customers (43 percent) or non-Amazon customers (37 percent) who would try an account, indicating strong loyalty to the Prime bundle of services.
Expectations have been high since it was reported in March that Amazon is in talks with banks including J.P. Morgan Chase and Capital One to create a checking-account-like product for its customers. Since then, big U.S. lenders including Chase and Citigroup have announced or rolled out digital-only accounts targeting some of the same millennial customers that the Amazon product may appeal to.
"The big banks have absolutely woken up to this threat," said Gerard du Toit, a Bain partner and co-author of the report. "They're very focused on Amazon-proofing their business because they recognize that it's big tech, not the other banks or fin-tech startups, that's the real competition. Tech firms are the ones setting expectations for what a great customer experience looks like."
Bain surveyed 6,000 U.S. consumers recently with a simple question: If Amazon launched a free online bank account that came with 2 percent cash back on all Amazon.com purchases, would you sign up to try it?
All else being equal, younger respondents were more likely to answer with yes, according to the survey. Almost 70 percent of those in the 18-to-34 age bracket would try the Amazon account, compared with about 50 percent of those 35 to 54 years old and under 40 percent of those older than 55.
Banks, most of whom spent years restructuring after the 2008 financial crisis, have only recently ramped up their digital efforts, and it shows. Amazon crushes national banks in consumer loyalty: It earned a 47 in the so-called net promoter score measuring the likelihood a user would recommend a company's services, compared with 18 among national banks and 31 for regional banks.
The hypothetical 2 percent cash back is a relatively conservative perk, according to du Toit, who said that the potential checking account could offer richer inducements and would likely be simple to use and without typical banking fees.
Other possibilities: Amazon could place advanced ATMs at Whole Foods locations and also service accounts through the ubiquitous Alexa voice assistant, du Toit said.
A checking account would eventually serve as a launching pad for other financial services, including personal loans, insurance and investments, he said.
That is the bigger threat for banks, since those products are typically more profitable than checking accounts and people often buy those from their main financial institution, du Toit said. Amazon customers control about 75 percent of total U.S. household wealth, according to the survey.
"You put all that together and say, 'Wow, if Amazon does go into banking, it could be massively disruptive in a way that's orders of magnitude more significant than anything" seen before, du Toit said.