UPDATE: Wells Fargo and Amazon ended their partnership on 08/31/2016 with minimal comment. The partnership fell under criticism from consumer advocates and organizations promoting affordable education.
Last month, Amazon.com entered the student loan business in a partnership with Wells Fargo, offering lower rates for student loans to Amazon customers who subscribe to the online retailer’s Prime Student service. Wells Fargo will cut half a percentage point from its interest rate on student loans to Amazon Prime Student members, who also get benefits such as free two-day shipping and access to movies, TV shows, and online photo storage.
Does this deal signal what many have felt is the inevitable entry of technology companies into the financial services industry, or is it a convenient and mutually beneficial partnership between two companies with common interests?