Retailers and Telcos Want to Be the Consumer’s Bank

Nonbanks across industries are aligning with chartered financial institutions to assemble branded financial ecosystems that have regulated balance sheets as a foundation, reshaping how consumers encounter banking products in the course of routine activity.

A current example comes from Verizon’s promotion that brings wireless customers into a savings relationship with Openbank, a division of Santander.

As detailed here, the program ties a high-yield savings account to monthly bill credits, with incentives framed in familiar consumer terms rather than what we might liken to “traditional” banking language. Customers committing minimum balances to high yield savings accounts reduce their wireless bills, with credits reaching up to $180 annually depending on balances.

The structure is explicit about roles. Verizon is not a bank and does not hold deposits. Funds are housed at Santander Bank, N.A., which provides FDIC insurance and regulatory oversight, while Verizon controls the customer funnel, the interface and the ongoing engagement.

The offer illustrates how financial services are being inserted into existing consumer relationships rather than sold as standalone products.

Big Tech and Retail Extend the Model

This approach has already taken hold among large platforms. Apple’s credit card and savings products, developed with Goldman Sachs and transitioning to Goldman Sachs, place a technology firm at the center of the user experience while the bank handles underwriting, compliance and balance sheet exposure.

Amazon has worked with JPMorgan Chase on financial offerings for merchants and consumers embedded within its commerce environment, integrating payments and credit into seller and buyer workflows.

Walmart’s long-running partnership with Green Dot has enabled it to offer prepaid cards and banking services through its retail footprint, extending financial access while maintaining control over distribution at the store level.  That joint effort was extended until 2033.

Banks Shift Toward Infrastructure Roles

For banks, the partnerships offer a channel for deposit growth that does not rely on traditional branch or digital acquisition strategies. In the Verizon and Openbank model, customers are encouraged to maintain balances to qualify for bill credits, effectively anchoring deposits within the bank while customer acquisition is handled by the telco.

At the same time, the bank’s role becomes less visible. Compliance, risk management and capital provision remain central as the primary customer relationship sits with the nonbank partner. The bank functions as a regulated backbone, ensuring that accounts are insured and transactions are processed.

The expansion of these arrangements leads to the assembling of interconnected ecosystems that combine commerce and communications into a single environment, underpinning financial services.

Control of that environment brings advantages. It allows firms to shape pricing incentives, direct customer behavior and capture data that informs cross-selling and retention strategies. Financial services are being redistributed across platforms that already command consumer attention.