Walmart US CEO reveals the retailer’s core fintech strength: its massive customer base

Walmart US CEO John Furner said that the retail giant plans to leverage its massive reach as part of its new, mysterious fintech venture.

Speaking at Bank of America’s 2021 Consumer & Retail Technology Conference, Furner addressed a question from Bank of America Securities Managing Director Robby Ohmes about Walmart’s fintech future. Walmart has so far simply announced that it intends to launch an as-of-yet-unnamed fintech venture with investment firm Ribbit. During an interview, Ohmes asked Furner if the retail industry could expect a “Bank of Walmart” in the near future.

While noting that it’s still “early days” for the new venture, Furner spoke about the rationale for his company’s foray into fintech. He said that Walmart can leverage the “millions of customers” who trust his company for healthcare needs, online shopping, and delivery. As of 2020, Walmart’s physical and e-commerce stores attract 265 million customers a week, on a global basis.

According to Furner, the core proposition behind the fintech venture is offering those shoppers “a better way to transact” with Walmart.

“We have a place where we can offer a suite of financial services done in a modern way, on a modern platform, that can benefit the customer,” he said. “With fintechs and startups, one of the hardest things to do is to acquire customers. It’s expensive.”

So far, Walmart has hired two consumer bankers away from Goldman Sachs. But details still remain scarce on the exact nature of the retail giant’s unnamed fintech venture. Experts have speculated that the retailer may be able to leverage its massive consumer base to provide low-cost financial services.

“We’ve got a lot of work to figure out the best path, but whatever it is, the customer will be at the center,” he said.

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