Thursday, January 26, 2006

Wal-Mart and banking

According to D. Irvin, Wal-Mart wants to have banking in their stores which would make more customers attend. However, some people and Alabama disagreed with their plan. Alabama people believe Wal-Mart is trying to take over banks. Wal-Mart has more than one thousand bank branches. Instead of Wal-Mart paying to have money processed by other banks, Wal-Mart will save their money by processing their own transaction. Workers of banks and Alabama find that Wal-Marts are bringing banks into their stores is not good, because Wal-Mart has attempted to bring banking in the stores in the past and failed. Although many people in Alabama disagree with the banking Wal-Mart believes it’s a good deal for both the Wal-Mart companies and customers. Wal-Mart has been known for their on going growth in the expansion and would do anything to have their customers continue to return.

There are three reasons that it’s not a good idea to make a bank in Wal-Mart.

First, if there is a bank in Wal-Mart, a lot of local banks wii disappear because of Wal-Mart. There are a lot of banks in the United Stares like Old National, Bank of America and so on. I think it’s a good way for workers of banks and customers to put ATMs which are of those companies in Wal-Mart. It’s very convenient for customers to get cash from an ATM in Wal-Mart. In addition, if those ATMs are from Old National or Bank of America or some other bank companies, there is no fear of bankruptcy for our own bank.

Next, people want to talk about money when we get money or borrow money. At that time, the workers of banks can help and give us some advice. However, the bank in Wal-Mart can’t do like that. I think the money problem is very important for people, so we require a professional about money for customers in each bank. In addition, to be able to trust a bank is very necessary and important because of money. I think it is easier to trust local people in our own bank than a bank in Wal-Mart.

Finally, government needs to control banks. However, Wal-Mart is so huge that it’s much harder to control than small banks. It is important for government to grasp how much money each bank has. Therefore, if Wal-Mart has its own bank, the government can’t control their bank because of its size.

Wal-Mart is trying to open banking in their stores, but some people disagree with this plan. In addition, workers of banks are afraid of this action because if there is bank in Wal-Mart, their bank may go out of business. Wal-Mart thinks it’s a good way for both the Wal-Mart workers and customers.

Reference
Irvin, D. (2005, Sep. 1). Bankers warily watch Wal-Mart. Montgomery Advertiser. Retrieved from Lexis-Nexis, Jan-23, 2006

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