Walmart Presses Into Non-Banking Financial Services

The Stalwart submits: For god knows what reasons, Wal-Mart's (WMT) efforts to become a bank have been thwarted. It's probably because regulators want to protect mom & pop banks, like, oh, Citigroup (C) and Bank of America (BAC).

Yeah, that's it. Nevertheless, the company continues to press deeper into non-banking financial services:

Wal-Mart Stores Inc. announced a broader push into financial services, saying it will open 1,000 Wal-Mart MoneyCenters by the end of 2008, and begin selling a Visa debit card under its own name.

Wal-Mart now operates MoneyCenters at 225 of its 4,000 U.S. stores. The centers offer customers low-cost money services, including check cashing, money orders, bill payment and money transfers. The number now will double to 450 by the end of this year and then more than double again to 1,000 by the end of 2008, Wal-Mart said.

"Many of our customers are paying too much, traveling too far and not being well served," Wal-Mart Financial Services President Jane Thompson said. "But they still need to pay their bills, cash their checks and transfer money. We're offering them a safe place and a card to help them manage their money. We've seen firsthand what a difference that can make. It changes lives."