So, what's the one mega-corporation that's just itching to get into banking?

[Tab]

These guys can't wait to get licensed. I'm surprised we haven't heard a peep from them yet - maybe they're doing an AmEx and are secretly preparing their request. I can't imagine they aren't going to try to buy a bank or become a holding company or something. Betcha anything we hear from them soon.

Coming soon to a neighborhood near you...



Ladies and Gentlemen, I give you the Bank of Wal*Mart

God help us all.

[Lint Head]

1. Hell. Give me your money. I'll take better care of it than any bank or

Wall Street firm. :dem:

[Wapsie B]

2. They already have agreements with ING financial.

[BrklynLiberal]

4. Right. I had heard that they were getting into the banking game..

http://www.canada.com/montrealgazette/news/business/story.html?id=937b5d4d-9fa8-4e62-94ec-4e99311de4cd

Wal-Mart seeks bank licence
Would offer 'low-cost financial services'. Public opposition killed retailer's attempts in U.S.

Tuesday, September 16, 2008

Wal-Mart Canada Corp. has applied for a licence to set up a bank, but the move appears to target not the Canadian banking sector so much as other retailers.

"We don't have a final list of services yet. That would be premature," confirmed Wal-Mart Canada spokesperson Kevin Groh yesterday, although he mentioned a Wal-Mart credit card as the likely first step.

However, he added that over time, the company might consider "offering savings on loans, mortgages or RSPs (registered savings plans) and GICs (guaranteed investment certificates)."

The filing by the general merchandise discount chain published in the Canada Gazette on Saturday carried no other information, except to say that if the licence is granted, it will be called Wal-Mart Canada Bank, or La Banque Wal-Mart du Canada in Quebec, and will be based in Mississauga.

Public opposition has killed the various attempts parent company Wal-Mart Stores has made to open a commercial bank in the U.S., but its Mexican subsidiary succeeded in establishing its own bank in that country.

"Our interest is in setting up a bank that would offer low-cost financial services, many of them common to other Canadian retailers," Groh said. "(The bank) would serve our existing business, and we've done a very good job at being a low-cost provider, whether in products or services."

Groh added that Wal-Mart already offers some basic financial services like wire transfers, emergency bill payments, extended warranties and even in-store cash machines.

He could not say when the licence might be granted or provide other details.

"We are in the early stages of due diligence."

John Aiken, a banking analyst with Dundee Securities, said that rather than establishing a beachhead in the Canadian banking sector with the intention to become a significant player, the move is designed more as "a way of generating additional revenues from its existing client base," as well as of attracting new clients.

"It's an interesting trend because we're seeing a growing number of retailers" offering financial services to keep them coming back, including Loblaw Cos.'s President's Choice Financial, Canadian Tire and Sears.

The threat to eat into a large portion of Canadian banks' business is not significant, he added. Consumer loyalty programs and credit cards offered by retailers tend to appeal to slightly higher- risk consumers - a segment that has lost its appeal to banks these days.

And despite the financial muscle behind the world's largest retailer, banks offer a panoply of products and services that even Wal-Mart would have difficulty in matching, Aiken said.

The ones who should watch out if and when Wal-Mart does get a banking licence, said Aiken, are Loblaw, Canadian Tire, Sears and ING Direct, the online bank that offers high interest rates on savings accounts and low rates on mortgages.

[Canuckistanian]

6. Walmart has a nerve trying to set up a bank in Québec

After all, they've closed down TWO stores in Québec just to avoid their employees unionizing.

And this is a VERY 'small-l' liberal, pro-union province.

[BrklynLiberal]

8. I would think that the people would boycott WalMart thruout Canada

[ben_meyers]

3. Not much of a secret, they have been planning this for years

and quite publicly at that.

This from 2005...

http://www.businessweek.com/magazine/content/05_06/b3919046_mz011.htm

[Coyote_Bandit]

5. The Walton Family Owns a Regional Bank Group

Not much of a secret in this part of the world.

[Art_from_Ark]

7. Would that be Arvest, by any chance?

I've seen Arvest Bank branches in Arkansas Wal-Marts

[Coyote_Bandit]

9. .

Yes it would be Arvest.

This history of Arvest - and the Walton family ownership interest - can be traced back to the early 1960's when Sam bought an interest in the Bank of Bentonville. That gave him and his fledgling company access to credit that was difficult to get elsewhere. And I'm sure it was handy using the hometown bank for payroll and corporate operations.

Probably about 20 years ago the Walton family consolidated their interest (and purchased additional shares where necessary to secure controlling interewst) in several banks and formed the Arvest holding group. They also bought out several failed S&L's to add to their bank holdings.



There are also Arvest banks in a large part of Oklahoma. I think I've also seen some in Missouri.