21/08/2018

Amazon considers branching into financial services

More than £80m was wiped off the value of Moneysupermarket last week when it emerged that Amazon could be about to enter the UK insurance market.

It has been reported that Amazon has met major European providers about the potential for listing their financial services on a new price comparison website.

Russ Mould, investment director at AJ Bell, said: 'Business bosses around the world increasingly live in fear of Amazon, as it seems there is no industry the tech giant doesn't want to disrupt.

'Expanding into financial services may seem a strange move for a retailer, yet it makes sense when you consider Amazon's incredible reach and engagement with such a wide range of consumers. Home, travel and car insurance are already highly competitive markets but its muscle power and wide reach could give it a fighting chance of making a big success from facilitating the sale of third party insurance policies.'