Can Credit Unions Compete within Wal-Mart Stores?
Jim Rubenstein August 17, 2009 | COMMENTS In a number of Wal-Mart stores, customers looking to buy money orders, cash checks, or pay bills find themselves faced with a choice: credit union or Money Center? Wal-Mart Money Centers, present in nearly 875 stores, offer products designed to reach low- and moderate-income clientele. Could the centers be bad for credit unions with in-store branches? Synergistics Research Corporation CEO William McCracken thinks so. He warned credit unions and banks that the Money Center model poses a competitive threat because of the degree of comfort it provides to a segment of consumers who do not use basic banking services like checking but make frequent visits to the stores and are more comfortable with reloadable plastic. McCracken said he knows of a number of banks that have closed their Wal-Mart branches because they were not getting enough foot traffic, with potential customers going next door to the Money Center. Envision Credit Union, based in Talla
