| | |  Business News | September 2009 
Mexico Wal-Mart to Relaunch Bank
 Noel Randewich - Reuters
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September 10, 2009
Mexico City - Wal-Mart de Mexico plans to relaunch its Mexican bank in coming months, using its thousands of store cashiers to take deposits, in a bid to gain a foothold in an industry dominated by Citigroup and Spain's BBVA.
By far Mexico's largest retailer, Wal-Mart de Mexico plans to offer savings accounts and credit cards to the 3 million customers who visit its stores every day, two-thirds of whom currently have no relationship with any bank, Chief Executive Eduardo Solórzano said on Wednesday.
"By year-end, we'll offer our consumers almost 20,000 cashiers for the bank. That's all the cashiers we have," Solórzano told analysts on a conference call.
Wal-Mart de Mexico, controlled by Wal-Mart Stores Inc, first unveiled its bank in 2007 but made little progress in opening branches at its retail stores.
"You're going to see a relaunch of the bank, something maybe between 100 and 150 branches," Solórzano said. "You'll see that the footprint of the bank will be much clearer than it has been so far."
As well, Wal-Mart de Mexico expects to open 270 stores in 2009, 18 more than previously forecast, Solórzano said.
In the United States, authorities have prevented Wal-Mart from moving into the financial industry, to protect small banks.
In Mexico, government officials say the banking sector is not competitive enough and have authorized Wal-Mart de Mexico and other retailers to open banks to shake up the industry.
The bank's relaunch will include the installation of automated teller machines, currently being tested, in Walmart stores, as well as an advertising campaign.
Solórzano said the company is well positioned to focus on Mexicans with little or no experience with banks. Shares of Wal-Mart de Mexico were up 0.21 percent at 47.90 pesos. |
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