Large retailers and the provision of financial services
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Retailers offer financial services to 'unbanked'

Retailers offer financial services to 'unbanked' | Large retailers and the provision of financial services | Scoop.it
Millions of low-income Americans who don't have bank accounts are finding an alternative to check-cashing stores at an unusual place: their local big-box retailer.
Boris Péron's insight:

According to Ylan Q. Mui, the alternative financial services in the US represent a $320 billion industry (in 2011) and will keep growing because of a strong demand and a certain rigidity of the banking system after the last financial crisis. The targeted consumers are either without bank accounts, dissatisfied with banks or just don’t trust them. Even if some consumer groups think that retailers are more expensive than banks, it is the contrary on a large scale. The authors reminds that big retail company in the US escape for the moment from the regulations of the banking system.

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More Large Retailers Ease Customers' Path To Credit

More Large Retailers Ease Customers' Path To Credit | Large retailers and the provision of financial services | Scoop.it
Big-box stores are offering access to everything from insurance to home mortgages.
Boris Péron's insight:

According to Yuki Noguchi, the big retailers are trying to get more customers by improving their financial services and focusing and consumers unlikely to obtain mortgages or loans on regular banks. The author reminds that offering insurance and credits can help sales, but also that a real demand for these alternative bankers exist (“8% of US households avoid traditional banks”).

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Advantages of Discount Financial Services from Big Retailers

According to Consumer Reports magazine ShopSmart, there may be advantages to using a large retail chains to shop for financial products.
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J. Michael Krivyanski reports the analysis made ShopSmart on some financial services sold by big retailers: checks, mortgages, credit cards and insurance. If generally the deals are better than in regular banks (except for credit cards which sometimes have higher interest rates than the average), these deals are not as good as they could be compared to other products sold by large retailers.

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Banking: The New Supermarket Battleground (SBRY, TSCO)

Tesco and J Sainsbury are stepping up their banking operations. - Tony Reading - Consumer Goods
Boris Péron's insight:

According to Tony Reading, retailers are offering financial services for three main reasons: it is profitable, it creates a database for marketing researches and it enhances customer loyalty. According to the author, a retail company can retain get more benefits from the provision of financial services than a regular bank. Tony Reading stress out that the provision of mortgages to important for the company could endanger the financial health because of risky assets.

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Supermarket sweep: banking at Tesco

Supermarket sweep: banking at Tesco | Large retailers and the provision of financial services | Scoop.it
Just what the banks needed. With their reputations battered by accusations of overcharging and misleading customers, and their balance sheets stretched by the credit crunch, along comes Tesco threatening to take them on with a full-service retail...
Boris Péron's insight:

Sean Farrell is coming back on the buy out of the Royal Bank of Scotland’s 50% of their joint venture Tesco Personal Finance (now Tesco Bank). The author reminds that the aim is to be independent to start distribution online and boost the sales. According to the ratings agency S&P, the potential of grow in this sector is strong for Tesco. Sean Farrell also highlights that Tesco will be the only to support the loans and the savings in this balance sheet and that a default from Tesco could seriously damage its reputation.

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Supermarket banks are often the best

Supermarket banks are often the best | Large retailers and the provision of financial services | Scoop.it
Sainsbury’s has launched a new market-beating personal loan. The supermarket banks often offer excellent financial products.
Boris Péron's insight:

According to this article, Sainsbury’s was the first retailer in the UK to start financial products in 1997, followed by Asda and Tesco. The article is making a comparison of each products sold in Great Britain by big retailers.

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Major Retailers Start Selling Financial Products, Challenging Banks

Major Retailers Start Selling Financial Products, Challenging Banks | Large retailers and the provision of financial services | Scoop.it
As big banks keep credit tight and more people have no bank at all, retailers like Costco, Home Depot and Walmart are offering financial products like prepaid cards, loans and even life insurance.
Boris Péron's insight:

According to Stephanie Clifford, big retailers want to attract the customers that can’t profit from financial services of regular banks. But she highlights that the services provided by retailers can be more onerous for poor people and still present a high level of risk. The author reminds that the strategy of retailers is to attract customers and to help them to consume their products through short-term credit loans.

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Asda's move into banking: how do the supermarket banks compare?

Asda's move into banking: how do the supermarket banks compare? | Large retailers and the provision of financial services | Scoop.it
We weight up Asda Money against Tesco, M&S and Sainsbury's.
Boris Péron's insight:

According to Paul Farrow, the retailers benefits from a lack of trust in regular banks by offering financial services at a low cost. The author just highlights that the big retailers are not always offering the best deals to customers, even if they seem attractive in the first place.

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