Consumers Would Give Serious Look at Wal-Mart Mortgages
Whatever Wal-Mart touches seems to turn to gold.
You may recall that the world’s largest retailer made its rise as a competitor to K-Mart and Target, but once they decided to create super stores selling groceries, they became not only the largest retail store but the largest grocer also.
In a recent survey by Carlisle & Gallagher Consulting Group, respondents were asked if they would consider getting a mortgage if offered by Wal-Mart and 33% said they would, according to a reports from Reuters.
“Consumer attitude is driven by three things, price, service and trust,” Doug Hautop, Carlisle & Gallagher’s lending practice leader, said in a news release. “Institutions looking to gain market share must target customer values instead of traditional asset segmentation.”
The timing could be good for Wal-Mart to attempt a foray into a new sector. The 2008 crisis has left many major banks skittish about lending money.
Other lenders such as Quicken and Nationstar have been filling the void somewhat but few companies have the reputation and financial strength of Wal-Mart. Competitor Costco has already begun a limited mortgage program and by all accounts it’s working out well for them.
Neither Walmart nor PayPal responded immediately to a request for comment.
Would you consider a mortgage from Walmart?