March 03, 2005
The National Bank of Wal-Mart
Okay, all you Wal-Mart haters out there, here's something that you should, if you're actually serious about caring for the people that you claim Wal-Mart hurts, be completely thrilled about: the National Bank of Wal-Mart. What's that, you say? Wal-Mart wouldn't be the first retail giant to go into the banking business - Target and Nordstrom already own banks - but it's the largest corporation in the world and absolutely relentless about driving down consumer prices. This could be a phenomenally good thing for an industry that is founded upon screwing people without much money, i.e. the people who need good financial services the most.
The banking industry is understandably running scared over the prospect of having to be efficient in their pricing schemes and has already blocked Wal-Mart from purchasing two financial services firms, one in OK and one in CA. If you'll read back through my archives, you'll see that usury is one of my personal vendettas, and I would absolutely love to see Wal-Mart end it for good. I'd be in favor of regulating usury out of existence, but it Wal-Mart can do it without changing the laws, that'd be even better.
I wrote a piece on Wal-Mart for the Pulse this week, and the more I think about it, the more it seems that Wal-Mart is successful because it does what it's supposed to do. It's efficient, it finds the right neighborhoods at the right times, and gets goods to the public with streamlined efficiency and (somewhat) lower prices. The side effects of Wal-Mart (its effects on communities, workers, etc.) have been a mixed bag, I think. But this plan might shift the scales in their favor. There's something to be said for giant faceless corporate suits -- if they're competent giant faceless corporate suits.
Posted by: mesh at March 3, 2005 07:25 PMI suppose it's better than being coporate faceless giant suits.
[-p]
Posted by: Pablo at March 4, 2005 01:43 AMThat, my friend, is a given.
Posted by: mesh at March 4, 2005 01:52 AMRyan, as a banker I obviously have a little issue with your sentiments. Many banks offer free checking to consumers with as little as a direct deposit into an account. Or, for those who can't get a direct deposit and don't want to pay very much for an account, they can often open a savings account at less than it would cost them to cash their checks at a check cashing place. Check cashing places are where you should be focusing your wrath, their "fees" really should be considered usury.
Posted by: ARoss at March 4, 2005 11:38 AMThanks, Pablo. I like how we're using Ryan's blog as a mutual admiration society. We should keep it up.
Posted by: mesh at March 4, 2005 12:15 PM