Growing Wal-Mart Financial Services by Serving the …Growing Wal-Mart Financial Services by Serving...
Transcript of Growing Wal-Mart Financial Services by Serving the …Growing Wal-Mart Financial Services by Serving...
Jane ThompsonVP & President, Wal-Mart Financial Services
June 9, 2008
Growing Wal-Mart Financial Services by Serving the Underserved
2
Wal-Mart Financial Services: Save Money. Live Better.
Our company’s purpose is our reason for being
Saving people moneySo they can live better.
Wal-Mart Financial Services Mission Statement
Help our customers live better lives through our financial products and services
Wal-Mart Financial ServicesBrand Positioning
Wal-Mart Financial Services provides financial tools to help our customers live better because only WFS
delivers savings, access, and convenience
Business Objective Serve the needs of the Unbanked/Underserved
3
WFS Customer Target
• 73 million underserved in the U.S.
– 45 million “underbanked”
– 28 million “unbanked”
Source: Center for Financial Services Innovation
4
Start with Customer Needs
Cash ChecksPay Bills
Transfer Money
ConvenientSafe and Reliable
A Place I Can Trust
5
Provide Basic Services + EDLP
Check CashingMoney OrdersBill Payment
Money Transfers
One-Stop ShoppingWhere I Shop Each Week
At Every Day Low Prices, Of Course
6
Price It Right … “Clarity of Offering”
7
Save our Customers Money
$5.5 to 7.0 Million Customer Savings per Week$330 Million for FY08
Based on Internal Calculations of Pricing vs. Primary Competitors
8
Results: Rapidly Growing Business
2.5 to 3.5 Million Financial Services Transactions per Week
Money Orders Money Transfers Check Cashing
9
WFS Strategy Evolution
Provide BasicMoney Services
Build PlatformsFor Growth
InnovateFor Growth
Product DrivenCheck CashingMoney Orders
Money TransfersBill Payment
Integration DrivenWM MoneyCenter
WM MoneyCenter ExpressWM MoneyCard
Technology DrivenCard Technology
Payment TechnologySelf Service
Phase I
Phase II
Phase III
10
Dedicated Location Platform for Growth
11
Milestone: 500th Wal-Mart MoneyCenter in June
• Our “Home” in the store
• Will reach 1,000+
locations over next year
12
Dedicated Card Platform for Growth
• Easy to get– Purchase at any participating Wal-Mart– No bank account or credit check required– No overdraft fees—spend only what you load
• Easy to use– Use anywhere Visa® debit cards are
accepted– Pay your bills, shop online, pay at the pump,
cash at ATMs• Reloadable
– Use cash, payroll check, MoneyPak or direct deposit
• Safe– $0 liability for unauthorized use if your card is
lost or stolen
13
Milestones for Wal-Mart MoneyCard in June
• One million+ cards sold
• One billion+ dollars loaded
• 80%+ of card holders would recommendto a friend
14
Wal-Mart MoneyCard: Integrated with Other Services
• Provide customers with the freedom to spend stimulus dollars as needed – safely
– Free stimulus check cashing with no purchase required
– Rebate purchase price of Wal-Mart MoneyCard
15
Milestone: Wal-Mart MoneyCard in Stimulus Check Cashing Campaign
Wal-Mart Economic Stimulus Commercial
16
Wal-Mart MoneyCard Student Edition: New Customer Target
• Convenient for students and parents– Two cards / One account– No overdrafts– Instant reload access at Wal-Mart
• Daily text balance alerts andonline statements
• Integrated with Wal-Mart’sBack to School program
17
New Service Coming Soon: Walk-In Bill Payment
• Pay your bills where you shop
• Immediate proof of transaction
• Available online through the Wal-Mart MoneyCard
18
Customers Can Pay Thousands of Bills at their Neighborhood Wal-Mart
Top Billers
• AT&T• Dish Network• DirecTV• Capital One Credit Card• Verizon• AT&T Mobile• Local Utilities
19
Focus for the Future
INSIGHTinto our
customers needs
INNOVATIONthrough technology
and partnerships
INTEGRATIONwithin Wal-Mart