BBVA has decided to purchase the banking platform, Simple – does this open the door for Amazon (NASDAQ:AMZN) or Google (NASDAQ:GOOGL) to get into the banking business? Simple is not a bank, but only provides the front-end customer experience for users. Simple uses the banking services of the FDIC-insured, The Bancorp Bank.
In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss the possibility that Google and the other tech giants could move into the banking space.
David argues if Google was able to market its service as ultra-convenient and secure, it could be a great move for the company. Meanwhile, Matt points out that Amazon already has the trust of the its customers via the countless transactions already conducted on its platform. While the idea could ruffle the feathers of Facebook (NASDAQ:FB) users, if done correctly, banking services through Facebook's platform could make its user base significantly more "sticky" and willing to spend time on its services rather than new upstarts.