Wal-Mart Takes Another Run at Banking Biz
By George Anderson
The nightmare of bankers everywhere may be about to come true. Wal-Mart Stores, which has been turned away in California, Canada and Oklahoma, may finally be approved to establish an industrial bank in Utah.
If approved, Wal-Mart would be able to process electronic checks as well as credit and debit cards. It would also be able to offer consumers loans and federally insured accounts of deposit, with some limitations.
Being able to process its own electronic transactions would save the retailer a significant amount of money.
Moderator’s Comment: How big a competitive advantage would being able to process its own electronic transactions give Wal-Mart? Would Wal-Mart getting
approval to establish an industrial bank set off a scenario where other retailers followed suit? –
George Anderson – Moderator