Wal-Mart’s Money Center: is it getting to be too much?
A New York Times article, reveals the new venture into the money market being made by consumer giant Wal-Mart. The bank’s customers are complaining of high costs and nickel and diming fees that are no longer making it worthwhile to have a bank account. Ans who is providing the alternative? Wal-Mart. Offering cheque cashing and other banking transfers at a lower cost, Wal-Mart is begin to gain on the market previously controlled by cheque cashing stores.
“We’re not a bank, but we can serve a lot of types of functions you would see someone go into a bank for.” says Daniel Eckert, the head of Wal-Mart Financial Services. Here Wal-Mart is essentially doing what it has done and will continue to do with every other product: offer them at lower prices than its competitors. This will cause them to increase their portion of the market share by making it impossible for others to compete.
Wal-Mart has become the “everything for cheaper” store. From diapers, to tires, and now financial services, you can expect to find it at Wal-Mart for less. What’s next?