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Wal-Mart getting into the banking business
Posted on 9/30/14 at 11:38 am
Posted on 9/30/14 at 11:38 am
and it makes a lot of sense
quote:
Wal-Mart announced last week that it will partner with Green Dot, an issuer of prepaid debit cards, to offer low-fee checking accounts to customers in all Wal-Mart stores. The service, GoBank, will offer checking accounts with no minimum balance and no overdraft fees. The monthly service will cost $8.95, but that fee is waived with at least $500 per month in directly deposited funds.
Wal-Mart’s move into banking may seem odd, but if the behemoth is looking to serve its customers, bank accounts are a natural product. There are more Wal-Mart stores in areas where a higher percentage of the population is unbanked — that is, without a checking or saving account. According to the most recent National Survey of Unbanked and Underbanked Households, conducted by the Federal Deposit Insurance Corp. (FDIC) in 2011, an estimated 8.2 percent of U.S. households are unbanked, or about 10 million households.
Combining Aggdata.com’s complete list of Wal-Mart stores with the FDIC data, we can statistically analyze the relationship between the world’s largest retailer and the unbanked in the U.S...
Deterred from opening a traditional account — perhaps because of minimum-balance requirements — the unbanked instead rely on payday loan or check-cashier services, usually at a higher cost. For those with checking accounts, many pay hundreds of dollars per year in overdraft fees. And accessibility matters for the unbanked, too: There are about 4,300 Wal-Mart stores in the U.S., and GoBank says it will have 42,000 ATMs.
Posted on 9/30/14 at 11:40 am to 90proofprofessional
Holy shite that first map should be a red flag to everyone on this board
Posted on 9/30/14 at 11:45 am to 90proofprofessional
and they're probably going to start offering deals by using a walmart debit card. genius
Posted on 9/30/14 at 11:45 am to Doosh606
I bet a map of payday lender density would correlate closely
Posted on 9/30/14 at 11:45 am to 90proofprofessional
quote:
I bet a map of payday lender density would correlate closely
and obesity
and lack of education
and smoking
Posted on 9/30/14 at 12:05 pm to 90proofprofessional
WMT has wanted to get into banking for a while. They tried to start their own bank (similar to Target) and basically were told no by the government. So this is their way around it.
I can see WMT doing something like offering a discount for using it's debit card in WMT stores, similar to Target.
They are charging $8.95/month, waived if you have over $500 per month in direct deposit. Gulf Coast Bank, where I bank, has an account that requires a $20 opening deposit, and has no monthly fee.
I know there are some times where people can have such bad financial history that they get denied to open a checking account. But it seems to me we need to do a better job of getting people a checking account for free.
I can see WMT doing something like offering a discount for using it's debit card in WMT stores, similar to Target.
They are charging $8.95/month, waived if you have over $500 per month in direct deposit. Gulf Coast Bank, where I bank, has an account that requires a $20 opening deposit, and has no monthly fee.
I know there are some times where people can have such bad financial history that they get denied to open a checking account. But it seems to me we need to do a better job of getting people a checking account for free.
Posted on 9/30/14 at 12:20 pm to LSUFanHouston
The number of unbanked around here isn't so surprising when you see the wad of cash come out for groceries.
Posted on 9/30/14 at 12:32 pm to 90proofprofessional
quote:
I bet a map of payday lender density would correlate closely
i drove down North Blvd from acadian to BRCC the other day.
with no exaggeration, there have to be 50 payday advance places in those few blocks
Posted on 9/30/14 at 1:08 pm to 90proofprofessional
Serious question on this:
Many Wal-Marts have space that is occupied by existing banks (in Texas, Woodforest National and First Convenience are big ones; I use the latter for my rental property checking account).
Does this mean those branches are going away?
Many Wal-Marts have space that is occupied by existing banks (in Texas, Woodforest National and First Convenience are big ones; I use the latter for my rental property checking account).
Does this mean those branches are going away?
Posted on 9/30/14 at 1:58 pm to 90proofprofessional
quote:Sounds like a gold mine.
The monthly service will cost $8.95,
Posted on 9/30/14 at 2:01 pm to SlowFlowPro
quote:
I bet a map of payday lender density would correlate closely
and obesity
and lack of education
and smoking
and something else.....
Posted on 9/30/14 at 2:05 pm to CptBengal
quote:
and something else.....
Like?
Posted on 9/30/14 at 2:16 pm to Doosh606
I've been seeing this happening for a while. They already have money services they have been expanding for the past few years.
Its extremely popular with the immigrant workforce. They will go on payday, cash their check, send the majority back to mexico leaving themselves enough money to buy unerwear, refried beans, and tortillas.
Its actually quite the sight to be in a Walmart on construction worker payday.
Now, they're going to get people on government assistance to deposit right into their walmart bank account.
Its extremely popular with the immigrant workforce. They will go on payday, cash their check, send the majority back to mexico leaving themselves enough money to buy unerwear, refried beans, and tortillas.
Its actually quite the sight to be in a Walmart on construction worker payday.
Now, they're going to get people on government assistance to deposit right into their walmart bank account.
Posted on 9/30/14 at 4:23 pm to SpidermanTUba
quote:
Sounds like a gold mine.
Yeah, they probably shouldn't bother.
Posted on 9/30/14 at 5:02 pm to Quidam65
quote:
Does this mean those branches are going away?
Right now, many of th elocations that have those bank branches, also have a WalMart financial center of sorts, where you can send money to other people, buy gift cards, cash payroll checks, etc.
My guess is WMT will try to do the new stuff via that space, and keep the banks where they are. I'm sure WMT makes a nice rent from those banks.
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