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Walmart Entering Banking World

Mar. 02, 2021 1:50 PM ETGS, JPM, MTB, WMT12 Comments
John M. Mason profile picture
John M. Mason


  • Walmart is moving again to enter into the banking world forming, with Ribbit Capital, a new operation aimed at creating a digital platform that will achieve major scale.
  • The pandemic has had a major effect on banking as more people move to digital tools and this is changing the landscape, something that Walmart doesn't want to miss.
  • Investors are going to have to deal with these changes coming to the banking industry as many "major" players become FinTech competitors along with the many mergers/acquisitions taking place.

The biggest threat to the banking industry - tech and fintech is."

This comes from Robert Armstrong in the Financial Times.

This is the world of today, and, even more, the world of tomorrow.

Laura Noonan and Robert Armstrong also write in another Financial Times article that in regards to banking:

It's all about scale."

The digital world is all about building platforms and networks and, since, these vehicles are based primarily upon intellectual capital, they can scale up at zero- or near-zero marginal cost.

And, the result is massive changes underway in the banking world.

This movement is taking place within the U.S. banking system, but pressure to change is also coming from the rest-of-the-world, especially from China.

These developments are putting pressure on investors because they contribute to the "radical uncertainty" that exists in today's world. Investors in financial institutions must keep their eyes on how these changes are impacting the organizations they are interested in.

Strict value investing is taking a back seat in such a world because investors don't know what the world of banking and finance are going to look like in five years.

Walmart Is Entering The Fray

Walmart, Inc. (WMT) attempted to start a bank in the early 2000's but withdrew its application for a U.S. bank charter in 2007.

Now, it is rushing in and betting that the world has adjusted to the FinTech movement and to the digital world.

Walmart is associated with Ribbit Capital in this effort. Ribbit is headed up by a serial venture capitalists and is aiming to "deliver tech-driven financial experiences tailored to Walmart's customers and associates. Walmart is the major owner and is very willing to grow the new "through partnerships and acquisitions."

In other words, Walmart has some very big plans.

Another indication that this

This article was written by

John M. Mason profile picture
John M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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