By Matt Egan | CNN Money |
Alexa, manage my money.
Amazon is already a one-stop shop for clothes, cloud computing, TV shows and even medicine. Will wealth management be next?
In the future, Amazon could sell its customers a super-powered robo-adviser or access to cheap funds, analysts at Sanford C. Bernstein & Co. wrote in a report published on Tuesday.
The firm argued that Amazon has countless advantages that would pave the way for invading finance. Jeff Bezos’ company has a massive customer base including 100 million Prime subscribers. It has vast amounts of data on those customers. And that’s not to mention Amazon’s superior reputation.
“We think Amazon is well placed to disrupt the industry,” Bernstein wrote.
Managing money is a far cry from Amazon’s core business. But it’s not as crazy as it sounds.
One of Amazon’s biggest rivals is already in finance. Alibaba’s Ant Financial launched a money-market fund that quickly became the world’s largest. Ant Financial used its payments service, Alipay, as a gateway to get customers to use the money market fund.
Ant Financial has since created a robo-service that uses artificial intelligence to suggest stocks, bonds and commodities for customers based on their payment activity.
“This is a model other tech companies could follow,” Bernstein wrote.
Read more at CNN Money.