"Wal-Mart is giving “unbanked” consumers, in lower-income brackets, opportunities in financial services often overlooked by traditional banks."

It's time Bankers face the fact, that whether they love Wal-Mart or hate Wal-Mart, Banks ARE competing with the World's Largest Company for market share. Though Wal-Mart has failed in its attempt to gain a banking charter, the company enjoys a thriving business in financial services. Today, Wal-Mart already leases space in over 1000 of its stores, in the USA , to banks. It has even formed alliances with financial services providers like MoneyGram and Discover Card. Wal-Mart cashes its customer's payroll checks, provides money transfers, and offers money orders. It even offers a variety of financial services products through its Wal-Mart Money Centers by SunTrust . Recently, the company gained approval in Mexico to open banks, and it won't be long before they revisit their USA banking strategy. So love ‘em or hate ‘em, Bankers need to understand Wal-Mart the retailer, its banking aspirations, and its financial services strategies and tactics.

Wal-Mart – a force to be reckoned with - Did you know, Wal-Mart is the largest employer in all of North America including: Canada , Mexico and the USA ? Did you know, Wal-Mart has over 7100 stores around the globe and more than 2 million employees? Did you know that 175 million customers shop at Wal-Mart's stores each and every week? Did you know its customers spend $39,000,000 dollars every hour of every day, and its net profits are $20,000 every minute of every day? Most importantly, did you know that Wal-Mart is downright determined to be a major force in the financial services arena? I am not trying to scare Bankers, or make you paranoid, but Bankers shouldn't make the mistake of underestimating Wal-Mart competition. Here's why:

“ Unbanked” Customers . It is estimated that as many as 20% of Wal-Mart's customers don't have a checking or savings account. These “unbanked” consumers represent an untapped market typically overlooked by traditional banks.

Technological Savvy - The company has the largest IT systems of any private company in the world

Cheap Capital - Wal-Mart “makes money on money” by turning inventory before they've even paid for it.

National Reach – With 4000 stores in the USA , Wal-Mart already has the store network to reach customers in every state in the country.

Cash Rich - With sales of over $350 billion ,Wal- Mart generates net profits of $11.2 billion (by the way, that's only a 3.2% net profit).

Last year I spoke at the Texas Bankers Association annual meeting where I delivered a keynote speech called, How Banks can Compete and Thrive in Wal-Mart World (a.k.a. Picking Wal-Mart's POCKETS ). I delivered a similar address for a major bank in Istanbul called AKBANK. It seems Bankers from Texas to Turkey are concerned about Wal-Mart's entry into the world of banking. The fact is that I speak at meetings all over the world about the best practices of Wal-Mart, the World's Largest Company, and its founder Sam Walton, the World's Richest Man (Note: he was worth $100 billion when he died).  I am the author of two books.  My first book is about the Strategies of Wal-Mart and my second book is about the Tactics of Sam Walton.   This year I have had speaking engagements in Russia , China , Australia (three times). South America (3 times), Canada  and across the USA .  Visit my web site for information about my books, my Wal-Mart Competition Blog and my speeches @ www.michaelbergdahl.net .

What should Bankers do? - Business competition in the banking industry, as you have known it, has changed . . . forever! Wal-Mart is coming! Wal-Mart is coming! Wal-Mart is coming! The mere mention of the name Wal-Mart engenders fear in the hearts of competitors around the globe. The reality is that Wal-Mart is bound and determined to carve out a big piece of the financial services pie . . . so what are Bankers supposed to do . . . NOW ? Wal-Mart has trounced hapless competitors around the world so what do Bankers need to do to make certain their bank isn't one of them? First you need a strategy and tactics to position your business for long term success? You must be willing to adapt and change and you must be willing to move quickly. In a Wal-Mart World doing things the way you have always done them, while expecting the same or a better result is the definition of business insanity. If you aren't willing to adapt your strategy and change you may fail. So you ask, “What should I do? What is the right strategy? Are some banks destined to fail?” The good news is that in every market where Wal-Mart operates there are retail competitors who not only survive, but they thrive! One strategy that Wal-Mart's successful retail competitors, both small and large, have used, and that you can us too, is to “ Pick Wal-Mart's POCKETS ” by copying some of Wal-Mart's own strategies and tactics. Think about it, what better way is there to develop your competitive retail banking strategy than to learn from the best practices of the largest and most successful retail company in the history of the world!

What do banks, both small and large, need to know about the world's largest retailer in order to compete effectively? I‘ve chosen the acronym P.O.C.K.E.T.S. as a focal point, because I know that for you to compete effectively you have to carve out a unique “niche” or “business pocket” in order to be successful. The POCKETS acronym stands for: P = Price, O = Operations, C = Culture K = Key Item Promotion/Product, E = Expense Control, T = Talent and S = Service. Conveniently, these are the seven key result areas of Wal-Mart's strategy and tactics that competitors around the world have successfully copied. In my book, my speeches and in this article I use the P.O.C.K.E.T.S. acronym as a framework to discuss the inside strategies and tactics used by Sam Walton and Wal-Mart that makes competition with them so difficult.

Bank Self-Assessment Inventory: I developed the following Bank self-assessment inventory around the POCKETS acronym specifically to help Bankers to develop their own competitive strategy. I challenge you to go through it with a critical eye. Assess your bank's strategies and tactics, and identify those areas within which you need to improve. The assessment has been developed using the 7 strategies and tactics contained in the POCKETS acronym – Price, Operations, Culture, Key Item Promotion/ Products, Expenses, Talent & Service. Once you have completed the self-assessment go back through it and identify your bank's strengths & weaknesses. You can then develop your own proactive strategies and tactics to improve or enhance your ability to compete. Don't forget to review the results of the self-assessment with your staff, and gather ideas from your entire team, to insure your strategy and tactics are right for your unique circumstances.

Michael Bergdahl

International Speaker, Author &

Wal-Mart Competition Authority

His Background: Michael Bergdahl is a professional international business speaker, author and turnaround specialist. Bergdahl worked in Bentonville , Arkansas for Wal-Mart, as the Director of “People” for the headquarters office, where he worked directly with Sam Walton. It was Sam Walton who gave Bergdahl the nickname, “Bird Dawg”! Previous to Wal-Mart he worked in the FMCG Industry for PepsiCo's Frito-Lay Division in the sales organization and headquarters staff assignments. He's an experienced turnaround specialist who has participated in two successful business turnarounds at American Eagle Outfitters and Waste Management.

Wal-Mart Competition Authority: Michael Bergdahl is considered an authority on Wal-Mart Competition . He has appeared on CNN, CNBC , CNN FN, MSNBC, CNN International, CBS National Radio and Bloomberg TV. He has participated in internationally televised news debates on “Power Lunch”, “On the Money”, “Morning Call”, and “Closing Bell”. Articles written by him, and articles written by others about him and his books, have appeared in business newspapers and magazines around the world. He maintains a Wal-Mart Competition Blog on his web site at: www.michaelbergdahl.net

His Books: He wrote his first book about “The Strategies of the World's Largest Company”, entitled: What I Learned from Sam Walton: How to Compete and Thrive in a Wal-Mart World. His second book is written about “The Tactics of the World's Richest Man”, entitled, The 10 Rules of Sam Walton: Success Secrets for Remarkable Results. Note: Rob Walton, the current Chairman of the Board of Wal-Mart and son of Sam Walton, wrote the Foreword for “The 10 Rules of Sam Walton” book. Both of these books were published and distributed internationally by John Wiley & Sons. Translated versions of his books are available in Russian, Vietnamese, Thai, Indonesian, Korean, Simplified Chinese, Traditional Chinese and Spanish.

Professional International Speaker: His international keynote speaking experience includes: * Brisbane , Australia * Beijing , China * Melbourne , Australia * Vancouver , British Columbia * Toronto , Ontario * Mont Tremblant, Quebec * Caracas , Venezuela * Bogotá , Colombia * Panama City , Panama * Cologne , Germany * Istanbul , Turkey * Malaga , Spain *  Moscow , Russia * Port Douglas, Australia * Santiago , Chile * Durban , South Africa * and across the USA *.

His Speeches: Michael Bergdahl is a professional international business speaker with substance, who is one part business, one part inspiration and one part storyteller. He customizes his speeches or workshops to fit the conference theme, and he designs them to teach others Wal-Mart's Best Practices. In his speech, How to Compete & Thrive in a Wal-Mart World (a.k.a. Picking Wal-Mart's POCKETS), Bergdahl unveils the seven strategies of the “Wal-Mart Way” and what audience members can learn from the teachings of Sam Walton, the World's Richest Man, and the strategies of Wal-Mart, the World's Largest Company.

Consulting: Michael Bergdahl is available to conduct a Bank Self Assessment Inventory with your entire staff.

Contact information

Michael Bergdahl : www.michaelbergdahl.net - 412-635-2638 – mbergdahl@aol.com