Wal-Mart wants in on the banking industry

Some in the banking community are fighting tooth and nail against Wal-Mart's application to charter its own industrial loan corporation, according to an In Business Las Vega article.

They worry that Wal-Mart will wipe them out, hurt small business and speculate that Wal-Mart would control the fate of its diminutive competitors by potentially withholding loans, according to the article.

What Wal-Mart is trying to do, according to a spokesperson quoted in the article, is to serve customers who wouldn't otherwise seek financial services from banks: money transfers, bill pay services, money orders and check cashing — "at the customer service desk, and at Wal-Mart style prices."

Wal-Mart actively markets its $3.00 payroll check cashing, $0.46 cent money orders and $9.46 money transfers to Hispanics. These are prices far lower than most banking institutions.

What ever you think of Wal-Mart, this is an idea that will work. As they say in the street, don't hate the player, hate the game.

Speaking of the game, this isn't really a novel idea. Some banks, such as Bank of America, are actively engaging the Hispanic market through offering products such as wire transfers.

Rather than complain and protest, other banks should follow suit and continuously offer products to meet their new customers' needs.