Costco Checks Into The Banking Business
Kristen Millares Bolt and Bill Virgin report for the Seattle Post-Intelligencer on Costco's quiet entry into offering a wide range of financial services through partnering - without pursuing a banking charter.
What Costco's financial-services partners get is access to Costco's customer base. Four years ago, when Costco was looking for a better rate on credit cards, it teamed with American Express.The partnership also gave Costco access to American Express' knowledge of the industry. Might Costco one day use the experience gained through such partnerships to get more involved in banking, such as to seek its own charter?
Galanti won't say if that's on Costco's agenda, although he does think retailers should be allowed into banking "in some way, shape for form. Whether or not it's for Costco, we're not sure."
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