
From the Wall Street Journal By
KAREN TALLEYWal-Mart Stores Inc., years after a failed effort to obtain a bank charter, plans a 50% increase this year in the number of the company's stores offering bank-like services.
The expansion would push the number of
Wal-Marts with "Money Centers" to 1,500, or a little less than one for every two
Wal-Marts in the U.S., giving the nation's biggest retailer a financial presence that only a handful of banks have.
Wal-Mart plans to open its 1,000
th money center Tuesday.
The money centers cater to millions of the retailer's lower-income customers who don't have a bank account or significant relationships with a bank. The federal government estimates that the category accounts for one in four U.S. households.
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What would you predict would happen to the banking industry if more retail stores follow this path?