For years, Wal-mart stores, Inc. (NYSE:WMT) has made efforts to expand into financial services for its retail business. This will introduce the concept of ‘all under one roof’ to the customers. To make that happen this time the retail giant has teamed up with Green Dot (NYSE:GDOT) to offer financial services to its clients. Green Dot (NYSE: GDOT) is a known company that provides payment cards to its customers, mostly those above 18. The company’s main focus is families who are financially not that stable. Considering financial rapport that Green Dot (NYSE: GDOT) holds in the market, it can be safely said that Wal-mart stores, Inc. (NYSE:WMT) has made a smart choice in terms of picking a partner for its next financial venture.
Both companies announced their collaboration recently and revealed that the award winning operation GoBank will now be available at the famous Wal-mart stores, Inc. (NYSE:WMT) retail stores. The GoBank accounts are expected to be worth $8.95 per month. It is believed that the service will be available by the end of October in the U.S. The online banking system will be available on mobile devices without any defaults, bounced checks, low account balance or dues. These accounts will be FDIC insured.
This account checking service in selected Wal-mart stores, Inc. (NYSE:WMT) stores will help people manage their finances on their smartphones. This service will allow customers to make transactions from over 42000 free of charge ATMs in the U.S. However for ATMs that are not in the network the user will have to pay a fee that is 3% of the total transaction. Customers will need to setup an account to use GoBank services. The customers will be able to set up their accounts once they purchase an operation’s starter kit from any of the selected Walmart retail store. This account will be manageable from any PC or mobile phone.
Wal-mart stores, Inc. (NYSE:WMT) cannot strictly be classified as a bank, but it has started to function like one. There is a set criterion for using account checking system. Daniel Eckert, senior VP of Wal-mart stores, Inc. (NYSE:WMT) believes that nowadays, people look for simple ways to manage daily budgets. However, with their high charge fees, the typical banking system has made it quite difficult for them and they feel they are not getting enough value. GoBank on the other hand offers services that help its users in budgeting. A unique feature is that the account will notify the customer at once when he or she is about to go over their budget and spend too much. This is done through the feature “Fortune Teller” that matches the price of a product you want to buy with your expenses and planned income.
Customers will also be able to link their GoBank accounts with their MasterCard debit cards; this will also require the starter kit which can be bought for $2.95.
Banks have never supported Wal-mart stores, Inc. (NYSE:WMT)’s financial expansion plans and the GoBank initiative is no exception.