Walmart’s new bank taps captive market

Author: Zoe Thomas | Published: 13 Oct 2014
Walmart is set to move into the US banking space at end of October through a partnership with Green Dot bank.

The US retailer has made its desire to offer banking services clear for years; it already operates a bank in Mexico. In 2007 it gave up on its attempts to secure a US bank charter, but has since launched a pre-paid card in conjunction with American Express and a money transfer services.

This latest partnership with Green Dot, a US regulated bank, will allow Walmart customers to apply for checking accounts in store that have lower eligibility thresholds than traditional bank accounts.

"Walmart is opportunistic and has a strong captive consumer base that is in need of financial services," said Jeffery Taft a partner at Mayer Brown.

"Green Dot has a tradition of targeting this market...