Former Walmart CEO Bill Simon argues that the coronavirus pandemic will challenge department stores, but centralized outlets will perform well.
Walmart is partnering with Ribbit Capital, a venture capital company behind the free investment platform Robinhood, in a new fintech startup designed to develop and deliver “modern, innovative and affordable financial solutions” to employees and customers of the retailer .
“For years, millions of customers have relied on Walmart not only to save money when they shop with us, but also to help them manage their financial needs. And they made it clear that they want more of us in the financial services area, ”said the president and CEO of Walmart in the USA, John Furner, in a statement on Monday. “We are excited to be working with Ribbit Capital on a new venture to help us provide innovative and necessary options to our customers and associates – with speed and scale.”
Walmart did not disclose the name of the new company nor did it say when its services would be available.
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The startup will be majority owned by Walmart, with Furner and Walmart’s executive vice president and chief financial officer, Brett Biggs, on the company’s board, along with Ribbit Capital’s managing partner, Meyer Malka.
“Walmart has a relationship with millions of customers and associates based on trust, security and integrity,” said Malka. “When we combine our deep knowledge of technology-based financial businesses and our ability to move quickly with Walmart’s mission and reach, we can create and deliver unmatched financial offerings.”
The startup will also add independent industry experts to its board and form a management team of experienced fintech leaders, with growth expected through partnerships and acquisitions with leading fintech companies.
In addition to Robinhood, Ribbit Capital’s portfolio includes Credit Karma, a consumer technology platform that offers customers free credit score checks, and Affirm, a fintech company that allows customers to pay for an item in installments after purchasing it. it online.
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Walmart serves more than 265 million customers and members each week at its 11,500 stores in 27 countries and its e-commerce sites, and employs more than 2.2 million members worldwide.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 147.29 | +0.66 | + 0.45% |
The company noted that it will continue to offer its other existing financial services and partnerships with third parties, including Walmart credit card, Walmart Money card, check cashing, money transfers, installment financing and more.
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According to the Federal Reserve, about 6% of adults did not have a bank account or did not have a checking, savings or money market account in 2019. Half of adults without a bank account used some form of alternative financial service during 2019 – such as money order check cashing service, pawn shop loan, auto title loan, paycheck loan, paycheck advance or tax refund advance. However, about 16% of adults were referred to as “without a bank” when they had a bank account but also used an alternative financial service product.
Those who did not or did not have banks were more likely to be low income, less educated, or belong to a racial or ethnic minority group. Fourteen percent of people with an income below $ 40,000 had no bank account, against 1% of people with an income above that limit. In addition, 14% of black adults and 10% of Hispanic adults had no bank, compared to 6% of adults in general.
The remaining 79% were considered “entirely bank”, where they had a bank account and did not use alternative financial products.