Boston, MA 09/25/2014 (wallstreetpr) – Wal-Mart Stores, Inc. (NYSE:WMT) entered into a deal with Green Dot Corporation (NYSE:GDOT) to facilitate opening of checking accounts of its customers.
According to a news covered by Bloomberg, Wal-Mart Stores, Inc. (NYSE:WMT)’s latest move build on its recent endeavor of expanding into financial services, which U.S.-based banks had tried to block. The checking accounts that the company is offering its customers via Green Dot’s banking division, will be linked to Mastercard Inc (NYSE:MA)’s debit cards. The accounts will not charge overdraft and will not require the maintenance of a minimum balance either. In addition, monthly fees will also not be charged when customers will make direct deposits, the company highlighted. Wal-Mart expects to offer the accounts to its U.S. customers by Oct-end.
Dissatisfied Financial Institutions
The move falls in line with the company’s efforts of expanding in the financial services sector. Apart from the latest announcement, Wal-Mart had also introduced a money transfer scheme in April. Nevertheless, the resistance of the nation’s lenders and labor organizations is evading the company from acquiring a bank charter. In 2005, banks had strongly opposed Wal-Mart Stores, Inc. (NYSE:WMT)’s petition to start a Utah-based industrial bank. They have been arguing that since the retailer is not concerned with financial regulations at the same level as they, it would be unfair if it is allowed to undercut their charges. As a result, Wal-Mart had given up the idea in 2007.
Wal-Mart’s Senior Vice President, Daniel Eckert, commented that the company’s customers have been looking for alternatives to better manage their ever day finances. They seem dissatisfied with the traditional banking methods and increasingly complain of not receiving value for their money.
The world’s biggest retailer has been providing assistance to its customers by allowing provisions of cashing checks and paying bills. It has also offered them debit cards in conjunction with American Express Company (NYSE:AXP) and Green Dot’s Pasadena.