Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

During the COVID-19 pandemic, consumers across the world experienced the real power of going digital, ranging from ordering products from Amazon to receiving groceries and dinner from other digital platforms. Such engagements put a limelight on those financial institutions that were sitting on rich customers' data but had failed to leverage on that to offer a personalised digital experience. Through Amazon Web Services (AWS), since 2006, Amazon began to offer IT infrastructure services (commonly known as cloud computing) to businesses in the form of web services. The IT infrastructure services were aimed to tap the opportunities to replace up-front capital infrastructure expenses with low variable costs needed to scale any business. In the subsequent years, Amazon had patented methods for linking bank account information along with launching its first payment product, 'Pay with Amazon'. Through huge cache of customers and vast amount of shopping data, Amazon had all the potential to diversify into financial services. But at the same time, would the banks and other financial institutions, which were highly regulated, having grip on credit issuance and were risk taking, be able to safeguard their home turf against the invasion of tech giants?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Amazon Inc
Employees:
10000+
Type:
Public company
Industry:
e-Commerce

About

Abstract

During the COVID-19 pandemic, consumers across the world experienced the real power of going digital, ranging from ordering products from Amazon to receiving groceries and dinner from other digital platforms. Such engagements put a limelight on those financial institutions that were sitting on rich customers' data but had failed to leverage on that to offer a personalised digital experience. Through Amazon Web Services (AWS), since 2006, Amazon began to offer IT infrastructure services (commonly known as cloud computing) to businesses in the form of web services. The IT infrastructure services were aimed to tap the opportunities to replace up-front capital infrastructure expenses with low variable costs needed to scale any business. In the subsequent years, Amazon had patented methods for linking bank account information along with launching its first payment product, 'Pay with Amazon'. Through huge cache of customers and vast amount of shopping data, Amazon had all the potential to diversify into financial services. But at the same time, would the banks and other financial institutions, which were highly regulated, having grip on credit issuance and were risk taking, be able to safeguard their home turf against the invasion of tech giants?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Amazon Inc
Employees:
10000+
Type:
Public company
Industry:
e-Commerce

Related