Would you trust Amazon with your life savings?

By Vanessa Chance

We recently had a heated discussion in the office about new entrants to the retail advice market. This was off the back of the news that John Lewis is launching new retail savings products and that Amazon might follow suit.

Some of my colleagues were appalled at the thought of ‘tax-dodging, employee-abusing, supplier-bullying’ tech giants being trusted with our money, or anything else for that matter. Put like that, I'd have to agree. But they are just so efficient! I honestly feel I couldn’t have gotten through lockdown without Amazon Prime. Just today I have ordered some lastminute bits to take on a trip tomorrow morning and they will be delivered at the end of my working day – just amazing! It’s a modern-day miracle. If only they were a bit better behaved.

We all feel a lot more comfortable with John Lewis. What is not to like? They choose great quality products and proactively price match them, so you aren’t ripped off. They make their employees partners in the business and continuously deliver a world-class service. Plus, they own Waitrose – the Heaven of supermarkets. They are the benchmark that other brands aspire to be. But can they get me what I want today? No. Not even a chance.

So, I would argue that both businesses could learn from each other, a bit like the tortoise and the hare. However, selling goods online and offering saving products are two very different beasts. When thinking about planning for my retirement, I would back the tortoise every time. 

Advising people on their finances is complex, particularly when you are matching long-term goals with short-term needs. On top of that, the market is changing all the time and the government changes the tax laws regularly too. You really need someone who knows their stuff, has access to the entire market and is ethical to give you the right advice. I can’t see Amazon being able to do this any time soon, although I am sure John Lewis could. Maybe this is just a mindset though.

I remember when internet banking was new and revolutionised the way we managed our money, then open banking came in and took it to another level. Robo-advisers are making great strides with the less complex products and many advisers are using a combination of robo and human advice to deliver great service at a more affordable price. There is plenty of scope for this market to develop and to make it more accessible for the masses.

Last year I had to use a new adviser to re-mortgage and they sent me a word document to fill in with my details, which jumped around the screen as I typed my info in. I couldn’t believe it. It felt 20 years behind. I bet if Amazon did my mortgage I could have done it in two or three clicks. Why is the financial services sector so far behind? The technology is out there to improve the customer journey, there is no excuse really.

So, while it may be hard to trust certain brands with our finances, I am keen to see what these new players do. This market could do with shaking up and more competition can only be good for the customer. A lot has changed in the last year and as consumers, we are more demanding than ever and only businesses that adapt to meet this higher expectation will survive.