Primary File

Wal-Mart N'est Pas Une Banque

Marco Pagani, Asbjorn Osland, Andrew Borchers
November 1, 2016
North America
Strategy & General Management, Accounting & Finance
7 pages
retail, strategy, financial services, banking, U.S. financial services sector
Student Price: 
$4.00 (€3.56)
Average rating: 

Wal-Mart was becoming a key provider of financial services to millions of US low-income consumers at the fringes of the traditional banking industry. It offered check cashing, bill payment, money transfers, credit cards, prepaid cards, small-business loans and an innovative checking account. Although Wal-Mart offered all these products, the firm was not a bank in the US. In fact, regulators rejected several attempts to acquire a US depository institution charter. Nevertheless, through strategic partnerships the retailer made significant inroads into the U.S. financial services sector. In contrast, Mexican and Canadian regulators allowed Wal-Mart to become a chartered banking institution and offer traditional financial products through a network of banking branches and Wal-Mart retail centers. The case asks students to analyze Wal-Mart’s strategy to offer financial services and assess its impact on consumers and competitors