MIAMI — Credit unions with Wal-Mart branches are now undergoing a reality check and may have to "dance with the devil" when it comes to dealing with the retailer and its planned rollout announcement last week of 1,000 "Money Centers," the president/CEO of the $750 million Tropical Financial Federal Credit Union said Tuesday.
"Though we hope that's not the case, you know there's nothing stopping Wal-Mart from signing up with third parties like Countrywide for mortgages or someone else for auto loans," maintained Gregory Blount, head of the CU headquartered in suburban Miramar.
Tropical, which has run successful Wal-Mart branches for five years, opened its sixth facility in Lake Park in March and so far "our branches have performed very well producing $100 million for us," said Blount.
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Like other CUs, early word of the Money Center launch came from unofficial sources or through the rumor mill but Blount noted that so far he sees no major threat. That might be different, of course, if the retailer starts offering auto loans "which would be our bread and butter."
Some CUs with Wal-Mart facilities have complained the branches, while serving as a helpful "billboard" in reaching new members, are too transaction heavy and are not worth the expense. However, Blount said, "we're very happy and we're getting new members all the time."
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