How Walmart is Changing Banking

I'm sure that you are aware of the disdain that the Occupy movement has for big banks. In addition to protesting about the lack of jobs, income disparity and what they see as the wholesale purchase of the nation, the protesters are angry at the banking industry.

In fact, they have encouraged people to take their money out of large corporate run banks and put it in smaller neighborhood banks and credit unions.

Surprisingly, Walmart, one of the corporations that people love to hate, is benefiting from the collective anger at big banks. Their Money Center offers check cashing for only $3, direct bill payment services and even has a re-loadable pre-paid debit card.

Many people are finding that it makes better sense for them to pay the check cashing fee and handle their responsibilities with a pre-paid debit card rather than subject themselves to the exorbitant fees that many banks charge. In fact, Bank of America just agreed to pay a $410 million settlement over outrageous overdraft fees. The company also announced a $5 monthly charge for having a debit card, which they later canceled after customers lashed out. The banking system is definitely feeling the hurt right now, and Bank of American is preparing to lay off 10 percent of its workforce.

The question is, is using Walmart's Money Center the better way to go? For some, it makes good financial sense, but you have to understand that Walmart is one of the world's largest corporations and has heavy connections in the financial world. In fact, the Money Store partner is GE Capital, part of General Electric. The company, which almost went under after the housing market exploded, is now back in the black, thanks in part to their partnership with Walmart's Money Center.

The truth is, it's almost impossible to dodge banks entirely and the Money Center does offer a valuable service. If you are trying to avoid giving your money to the big banks, you might want to look into joining a credit union.

Have you used WalMart's Money Center? What do you think about large corporate banks? Do you belong to a credit union? Please share your thoughts in the comment section.