Reuters

Wal-Mart Canada looks to widen financial services

Mon Sep 15, 12:33 PM

TORONTO (Reuters) - Wal-Mart Canada said on Monday that it has filed an application with Canadian regulators for a banking license as it aims to expand its financial services.

Kevin Groh, director of corporate affairs for the Canadian arm of the giant retailer, said the company is seeking permission from the Office of the Superintendent of Financial Institutions to provide a broader range of financial services, beyond its present scope of non-bank offerings.

Groh declined to comment on the content of the application, nor would he discuss what the company's additional services might be.

Wal-Mart Canada currently offers non-bank services such as money transfers, emergency bill payments, gift cards and automated teller machines.

"In order to broaden out into many of the other services that are available with other retailers, we do require a banking license," Groh said.

"Retailers are offering a huge range of financial services that aren't currently available to our customers because we don't have a banking license."

Wal-Mart launched no-frills banking services in Mexico last year -- which customers mainly use to get credit for buying domestic appliances. The company now boasts 38 banking branches near its Mexican stores, and plans to add 400 small banking booths inside stores.

Plans for expanded financial services in the United States were scuttled last year after Wal-Mart withdrew its request to open a specialty bank following opposition from politicians, consumer groups and community banks.

($1=$1.07 Canadian)

(Reporting by Scott Anderson; editing by Rob Wilson)

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