Amazon could be in prime place to shake up asset management industry

Amazon could be in prime place to shake up asset management industry
New report adds fuel to Wall Street's infatuation with company.
JUL 24, 2018
Amazon.com Inc. is well positioned to shake up the asset management industry, according to a new strategy report from Sanford C. Bernstein & Co. The Seattle-based company's broad customer base and online platform would give it an edge among big tech companies in asset management, most likely as "an arms-length distributor of funds" rather than as a "super-active manager," Bernstein analysts including Inigo Fraser-Jenkins wrote in a research note Tuesday. They cautioned this is just speculation as there's no sign that Amazon is pursuing asset management at this time. The company didn't reply to an emailed request for comment. Wall Street's infatuation with Amazon has spread across the market with speculation that the company may dive into sectors like insurance, mortgages or even medical devices. Already this year, Amazon has been a disruptive force for grocery stores, home security and prescription drug distributors. The opportunity is there for fund management with demand for lower-cost financial advice, Bernstein said. To be sure, the potential foray into the sector wouldn't come without a number of risks. Bernstein thinks the regulatory hoops would be surmountable but the risk to Amazon's reputation if investors lost money would be a bigger challenge to overcome.

Latest News

Mercer Advisors, Osaic deepen AI bets with Arch and Nitrogen deals
Mercer Advisors, Osaic deepen AI bets with Arch and Nitrogen deals

Arch claims 40% operating cost savings for Mercer as Nitrogen unlocks its agentic AI and tech suite to 10,000 Osaic advisors

LPL advisor, South Carolina state senator, elected to U.S. Congress
LPL advisor, South Carolina state senator, elected to U.S. Congress

A happy coincidence: one of LPL Financial’s corporate campuses happens to be based in Rep.-elect Wes Climer’s new district.

Advisor moves: JPMorgan lands $940M Merrill veteran in Los Angeles
Advisor moves: JPMorgan lands $940M Merrill veteran in Los Angeles

Wells Fargo and UBS also add advisors from Morgan Stanley, Edward Jones, Merrill and Fidelity in a fresh round of wirehouse recruiting

Wall Street products, Main Street regulators
Wall Street products, Main Street regulators

How we got here – and what to do about it

Most Americans are OK with AI managing their money - but not how you think
Most Americans are OK with AI managing their money - but not how you think

AI trust gap: Americans want protection, not autonomy, in their finances

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor