Comments on: Congrats to Zopa | most threatening non-bank competitor http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/ Starting the conversation about P2P Lending in Canada Wed, 08 Feb 2012 07:28:37 +0000 hourly 1 http://wordpress.com/ By: elurdy http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-143 Tue, 15 Jul 2008 13:39:47 +0000 http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-143 It is not whether you win or lose, but who gets the blame.–Blaine Nye (also attributed to Fran Lebowitz)

]]> By: Dan http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-45 Fri, 04 Apr 2008 19:41:18 +0000 http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-45 Well, I still see Wal-Mart as a bigger threat to banks than Zopa, but that’s just me :)

]]> By: Colin http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-44 Fri, 04 Apr 2008 14:31:31 +0000 http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-44 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.

]]> By: Geoff http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-43 Fri, 04 Apr 2008 13:40:39 +0000 http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-43 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.

]]> By: Dan http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-42 Fri, 04 Apr 2008 05:29:00 +0000 http://blog.communitylend.com/2008/04/03/congrats-to-zopa-most-threatening-non-bank-competitor/#comment-42 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

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