Wednesday, June 23, 2010

One more worry for banks: Wal-Mart - Jun. 22, 2010

An easy, interesting article for a Commercial Bank Management class or even Money and Banking:

One more worry for banks: Wal-Mart - Jun. 22, 2010:
"'Wal-Mart's income from the provision of financial services is currently an insignificant part of their overall income,' says Rajesh Narayanan, finance professor at Louisiana State University. 'But the rapidity which they have expanded their services in this arena suggest that their eyes are on a larger prize.'

For Wal-Mart, the benefits of offering financial services are clear. In addition to the $3 or so that customers pay for things like applying for and refilling debit cards, and having checks processed or printed, Wal-Mart steers shoppers toward making purchases in its stores through cash-back incentives. It also benefits from offering what amounts to a mall of services within its own stores

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