Terrible WalMart ad

[Broken Arrow]

Heh, well then perhaps this is not a good time to mention that newer Wal-marts in my area already have separate indoor "shops" with fully-functional banks. They also have barber shops, optometrist shops, and a shop to do your taxes. They also have McDonald's or Subway inside. It's almost like a mini mall.

[disneysteve]

They show those ads in Georgia and frankly I wouldn't expect anything else from Wal-Mart, no more no less. They have been sucking small and large businesses and surrounding communities dry for years now, this is only their next step.

The banking industry has been fighting them tooth and nail because offering check-cashing services is just laying the groundwork for an expansion into full-fledged banking.

Again, I have no problem with them offering the service. Cheaper is better. What I didn't like was suggesting that they buy a fancy TV with the money they're saving.

WalMart has been trying to get into banking. I think that would be great for the consumer and would force other banks to clean up their act and cut down on ridiculous fees in order to compete.

[GREENBACK]

WalMart has been trying to get into banking. I think that would be great for the consumer and would force other banks to clean up their act and cut down on ridiculous fees in order to compete.

I'm surprised they have been this slow to get into banking. They certainly are in position to be very competitive with a lot of the big banks.

Imagine if Wal-Mart offered a CC that you earned points on towards purchases in their stores. I would certainly apply for one. You have to believe that banks like Chase and Bank of America are shaking in their shoes about this idea.

I would think that in some dark secretive boardroom, ideas for establishing a banking arm are being tossed around. They're probably even discussing doing away with that silly little service fee they pay to banks for using their CC's.

Fact is that Wal-Mart is playing to the paycheck to paycheck crowd and they know it. Charging less to cash checks is a simple strategy aimed at these folks. They want these people in the store with a pocketful of money. They are not (neccesarily) looking to sell them just groceries and the basics of household living. Big screen TV's are as basic to their buisness as cheap jewelry and discount shoes.

I can't comment on their social conscious but as a large discount retailer they know how the game is played. Yes, they shut down a lot of small buisnesses that can't adapt but so has every mall and other discount chain(think K-Mart years ago) that has come along.

I'm not endorsing Wal-Mart but I do understand why they operate the way they do. Given their resources and obvious customer demand, who wouldn't operate in this fashion.

[Broken Arrow]

Perhaps Wal-mart has no real inherent interest in banking per se? Instead, they could just be leasing out space to banks that want to establish their own presence in Wal-marts. Woodforest is the bank that is in the Wal-marts in my area.

But check-cashing is a different story....

[Joan.of.the.Arch]

Likewise, I have seen a full service branch of a credit union in a Wal-Mart here.

Do Wal-Marts usually have ATMs in them?

[Cassandra]

Heh, well then perhaps this is not a good time to mention that newer Wal-marts in my area already have separate indoor "shops" with fully-functional banks. They also have barber shops, optometrist shops, and a shop to do your taxes. They also have McDonald's or Subway inside. It's almost like a mini mall.

The ones here offer optometrists, hair and nail salons, arcades, a McDonald's or a Wendy's, a place to do taxes, and a photographer (like the places you can get your senior photos done or do a family photo).

Greenback, Walmart already offers a credit card. There is a little stand in the Walmart I go to advertising their credit card. I'm not sure what (if any) rewards they offer.

[elessar78]

Reduced fee as compared to what? I still think direct deposit for government checks into non-fee charging checking accounts is possible. Debit cards linked to the account keep the account holders from ever even having to go to the bank.

My wife counsels a lot of poor people and the majority tend to not have checking accounts because they have outstanding debt elsewhere. If there's money in the bank, then creditors can get to it. Not justifying it, but shedding some light on the situation.

[elessar78]

I live in an old, run down steel town. There's a lot of "poverty" here as well as people on welfare. You should see the Wal-Mart here on the first Friday of the month. It is packed to the gills and it's unfortunate becauase you know that most people are blowing their meager welfare checks on non-necessities.

[GREENBACK]

Greenback, Walmart already offers a credit card. There is a little stand in the Walmart I go to advertising their credit card. I'm not sure what (if any) rewards they offer.

I wasn't aware that they offered this but What I meant was offering a card through their very own bank versus doing it through another bank.

I believe most Wal-Marts are going the cookie cutter route now. They all seem to have McDonald's, hair salons, opticians....etc..

Mine also has "Woodforest" bank which I never heard of before Wal-Mart brought them here

[Cassandra]

I wasn't aware that they offered this but What I meant was offering a card through their very own bank versus doing it through another bank.

Ah. I see what you mean now.

[poundwise]

Again, I have no problem with them offering the service. Cheaper is better. What I didn't like was suggesting that they buy a fancy TV with the money they're saving.

I understand your point, however, consider this: You are in charge of marketing at Wal-Mart. Your given task is, by means of an ad campaign, to increase the number of people using the money service. In the ad(s), you can tell people that they can save money and thereby invest it in an IRA or that they can save money and thereby get a new TV. Which do you utilize?

[disneysteve]

I understand your point, however, consider this: You are in charge of marketing at Wal-Mart. Your given task is, by means of an ad campaign, to increase the number of people using the money service. In the ad(s), you can tell people that they can save money and thereby invest it in an IRA or that they can save money and thereby get a new TV. Which do you utilize?

Oh, no doubt it is the way to go from a marketing standpoint. I just think it is irresponsible (not that many marketers are responsible). Why couldn't they just say cashing your checks at WalMart will save you $200/year and leave it up to the viewer to figure out what they could do with an extra $200?

[inneedofhelp]

I sincerely hope the ad was NOT depicting a family of color or a low-income family. Sigh, stereotypes get a bit frustrating.

I also wish that more people could get bank accounts and not have to use the pay-per-check cashing programs....and the main reason for many people not being able to get a bank account?--the initial deposit! Some places it is $300 to $500....even if you are opening an account at a bank in which you already have an account!

[Joan.of.the.Arch]

Oh yeah, that is a good point about the amount of money often needed to open an account. See how far I have come? I forgot about that.

[Scanner]

Isn't Sears into banking? I think they own Discover, right? I guess that's not exactly the same as retail banking. . .but I guess you can go into Sears and pay with your Discover card.

I don't really care as long as Bank of Walmart is well capitalized, FDIC insured, follows regulations and doesn't put my money into Toxic Waste.

But then again, I was the one who was all for the US seizing all banks. As a business person, I don't like my banks to screw around with my business money that I am using to pay for employees, contractors, suppliers, etc. I want that stuff safe and who's safer than the entity who prints the money?

Certainly not a company who sells Plastic Gnomes and other baubles and has a Greeter.