Banking-As-A-Service for Corporations The Next Wave

Jessica Ellerm is a thought leader specializing in Small Business and the Gig Economy and is the CEO and Co-Founder of Zuper, a neowealth disruptor in Australia

Just like you don’t need to be a qualified journalist to build a blogging empire, or train as a professional photographer to be become a high earning Instagram influencer, now you don’t need to be a bank to offer bank like services.

Moving swiftly into this new niche is Amazon – earlier this month the eCommerce giant announced it had partnered up with Marcus, the fintech offspring of Goldman Sachs. The Wall St giant will work with Amazon to underwrite digital credit lines for the platform’s sellers.

Of course, Amazon is no stranger to the lending space, having already operated a small business lending program for a number of years. Partnering up with Goldman will no doubt provide it with additional funding and the underwriting expertise it needs to bolster, improve upon and expand its offering.

While Amazon is a disruptor in the true sense of the word, even it hasn’t found lending a complete walk in the park. In 2019 it was reported that the business was struggling to maintain growth in its loan book, reporting growth of only 2.6% in 2018, down from 4.7% in 2017.

The move by Amazon shows a willingness to not necessarily go it alone when it comes to financial services – as it has done for many other industries it’s taken on. It’s similar to the approach a number of other big tech players (Apple for example) who have also looked to partner rather than buy or build when launching financial services that augment their core offering.

Banks are truly becoming invisible and fintechs like Marcus are the enablers of this new world. We interact with a bank only to allow us to interact with the platforms and business’s we want to trade with. When we can do all of this with our trading partners directly, as many will with Amazon – why on earth will we want or need a bank in our lives? The answer is we won’t.

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