Today, as a Washington Post article points out, there are millions of low-income people in the U.S. who do not have bank accounts. Stores from Best Buy to Walmart, however, are offering them services including check-cashing, money transfers, prepaid cards and kiosks to pay a variety of everyday bills such as utilities and phone.
Beyond serving the unbanked, a variety of retailers offer other financial services, such as ways to save on car purchases, financing home improvements and getting insurance. Sam's Club is working with its small business members to help them get loans up to $25,000 through the Small Business Administration.
Kmart, which has tested check cashing and money transfers in California, Illinois and Puerto Rico, is rolling out the program nationally.
Susan Ehrlich, president of financial services for Kmart and Sears, said financial services and layaway programs are helping to draw the chains "up the value chain" of consumers looking for help to better manage their money.
"My belief and expectation is that retail is going to continue to play an increasing and evolving role in the provision of financial services, particularly in underserved communities," Ms. Ehrlich, who was named to the Federal Reserve's Consumer Advisory Council, told the Post. "Our having a voice in making sure that there is an awareness of that, and that we set the regulatory framework to accommodate that, is going to be important."