Wal-Mart Banks Charging Hard In North America

Wal-Mart doesn’t have a bank yet in the U.S., but that isn’t stopping ‘em from forging full-steam ahead in Canada and Mexico.

In classic shrewd fashion, Wal-Mart seems to be using the financial crisis and the credit crunch to its advantage. Today’s story in PR Week isn’t the first to imply that Wal-Mart’s application for a bank in Canada might be “received favourably” by officials in a weak economy.

The story also noted for the umpteenth time that:

Wal-Mart Canada did not return calls for comment. In its notice, the retailer did not disclose what kind of banking services it would provide, but it is expected to offer credit card, mortgage, and investment products.

Meanwhile, a Bloomberg News story today tells us that Wal-Mex’s bank is growing. Wal-Mart de Mexico SAB is charging ahead south of the border and planning to unload 100,000 credit cards on Mexicans, targeting primarily the 75 percent of the population who’ve never had a bank account.

Issuing more credit cards as Mexico’s economy slows would allow Walmex, as the company is known, to collect annual interest of as high as 75 percent and encourage purchases of more expensive appliances and furniture at its stores, the only place the cards can be used. Walmex is preparing more financial products aimed at customers who have never had a bank account, about 75 percent of Mexico’s 103 million people.

In case you missed that: Wal-Mart is encouraging Mexicans to go in debt at 75 percent interest.

Presumably, Wal-Mart is trying to set up working bank operations in Canada and Mexico before trying again to apply in the U.S. And now they seem to be using the financial crisis as another tool to get into the banking game.

They certainly can’t expect us to keep quiet about any it.

Posted by Eric Bull on Monday, October 20, 2008

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