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America has been the biggest proponent of free trade practices. It despises government control in business and professes the capitalist way of doing business. Yet, in this country there is tremendous apathy towards Wal-Mart getting involved in banking.

Wal-Mart has changed the way Americans shop, and for the better. It started much after many of its well known competitors and has given them a run for their money. Much though people badmouth it on various grounds like unfair trade practices, bad employee policies and law breaking, the fact remains that nobody can wish Wal-Mart away. While it may be true that all that the retail giant does is not above board but for that there are appropriate government agencies to check frauds and unfair trade practices. Let us accept it, Wal-Mart works smart!

People often say that Wal-Mart should not be allowed into banking as they will introduce unfair trade practices. This essentially stems from the fear that if Wal-Mart gets into banking then it will turn banking into a competitive match and drive down profits for other banking players. There is a fear of takeovers and acquisition. With the deep pockets of Wal-Mart, it can easily digest several of the existing banks.

It is natural for a company to diversify into associated business. After all this is what business is. Grow, profit, prosper! Make a success of a line of business and then grow in allied lines. Wal-Mart already has existing relation with a large segment of the American population. Wal-Mart with its huge customer base will only behave more responsibly if it is allowed to get into banking. For it has greater things to lose if it does not follow proper business norms.

Frankly speaking, if you look at the banking industry you will realize that it requires immediate reorganization. There are numerous small banks spread all over America. Hardly a handful of them are true national players with branches spread across the country. If a person has an account with one of the smaller banks and if he or she relocates to another part of the country then most likely an account will have to be opened with another local bank. Otherwise one has to pay ATM fees to withdraw money from another bank's ATM. Is this justified? Wouldn't it be better if it is made mandatory for banks to operate in atleast 25-30 states before they are given license? This means banks would require more capital but this would also mean greater accessibility to customers.

Unfortunately, a group of politicians and business groups have ganged up against Wal-Mart. They fear that with the entry of the giant they will not be able to continue their profitable business at the expense of customers. Banking is a big contributer to election funds and campaign funds. So there is an ulterior motive of vested interests behind Walmart not being allowed into the business. But it is not in the best interest of banking.

There is nothing wrong if Wal-Mart getting into banking . Customers will be delighted as they will get products at more affordable prices. Infact loans will now be available at "Always Lower Rates". Who knows you might get a student loan for only 0.99% APR!

Learn more about this author, Saurabh Pal.
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