Congrats to Zopa | most threatening non-bank competitor
Congratulations to Zopa (UK, US, Italy, and Japan – P2P lending) on winning the award ahead of an impressive list of runners-up including PayPal, Wal-Mart, Vodafone and Prosper. The awards were run as part of the 26th Retail Banker International Forum 2008 event.
Banking News | Zopa most threatening non-bank competitor
Zopa beats PayPal, Wal-Mart, Vodafone and Prosper as the biggest threat to banks across the world.
Social lending pioneer Zopa (uk.zopa.com) is delighted to announce it has just scooped a major international award from the retail banking industry by being voted as their “Most threatening non-bank competitor”.
I’d still vote for Wal-Mart, they’ve received a banking license in Mexico already and have opened a branch, with 80 more in the pipe line. Looks like they just might bring banking to the masses in the areas that they operate in, which will soon be everywhere I’m sure.
Though looks like they’re still barred from getting a banking license in the US (bank+non-bank combos aren’t really allowed there)
Linky: http://turl.ca/walmartmexicobank
Dan
April 4, 2008 at 5:29 am
Mexico might be a an ideal test market for the Wal-Mart banking concept, but I wouldn’t put my money on seeing that format undermine traditional retail banks in Canada.
The Wal-Mart bank is operating within the big-box store (similar to their in-house pharmacies and fast-food restaurants) which is a destination shopping experience, usually located on the fringes of communities. Cheap land and economies of scale with huge sales volumes drives the reliably cheap shopping for which the Wal-Mart brand is known; I’m sure this reputation will extend to their banking with low fees and accessible financial services.
That being said banking is a service experience and unlike bargain hunting shopping people prefer not to have to cover long distances just to hit up an ATM, versus chartered Canadian banks which are positioned near practically every busy urban intersection in the country. They also wouldn’t be the first retailer to get into financial services in this country with Loblaws and Canadian Tire both active in the industry offering mortgages and savings accounts with moderate success, but by no means a threat to the charted banks.
The Money Gram issue raised in the article though is very interesting, with new immigrants making an increasingly large portion of our country’s demographic. So would a Wal-Mart bank work in Canada? Sure it would. Is it a threat to retail banks? No way. The biggest threat to retail banking in this country is that the only thing more convenient then a branch around the corner is the bank on your smartphone.
Geoff
April 4, 2008 at 1:40 pm
Geoff … you make a good point. WalMart are very much a targetted offer for a specific niche that in the US I have heard referred to as the ‘unbanked’; meaning those who are new to the country and less comfortable with traditional financial services.
Colin
April 4, 2008 at 2:31 pm
Well, I still see Wal-Mart as a bigger threat to banks than Zopa, but that’s just me
Dan
April 4, 2008 at 7:41 pm
It is not whether you win or lose, but who gets the blame.–Blaine Nye (also attributed to Fran Lebowitz)
elurdy
July 15, 2008 at 1:39 pm