Money News

Post Office should evolve into “people’s bank”, says coalition

Tuesday, 17 March 2009

Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

MPs, trade unions and small businesses have clubbed together to argue for a new type of local “people’s bank” to be introduced at Post Offices across Britain…

A major campaign to create a “people’s bank” at the Post Office (www.postoffice.co.uk) has been launched today. Under the proposed plans, 11,500 existing Post Office branches would offer a full range of banking services to those most in need.

The new “Post Office People’s Bank” would serve those who have been denied services from high street lenders and would provide a stable source of finance for the thousands of small businesses that are struggling to get loans from traditional banks.

The campaign is being backed by a coalition of trade unions, small businesses, MPs from all parties and pressure groups. Those in favour of the scheme have argued that a “Post Bank” would also create around 11,000 new jobs, boost the Post Office network and secure a future for the organisation.

Dave Ward, deputy general secretary of the Communication Workers Union (CWU) (www.cwu.org), said that the Post Bank would be “a radical redesign of banking.”

He said it would be based around a “public service ethos” and would bring affordable financial services to the heart of communities that need it most.

“If we make the right decisions now, the Post Office can play a key role in fighting financial exclusion, restoring our economy, and protecting and expanding job opportunities,” he said.

Campaigners say the bank would be backed by government funds and any profits would be reinvested into local communities and help finance banking services for small businesses.

Chris Eagle, commercial manager at CreditChoices.co.uk, said: “The Post Office already offers some attractive financial products, such as the Post Office credit card, which is the only credit card which doesn’t charge for transactions abroad (and hasn’t introduced plans to do so).

“The Post Office is a trusted national institution, so to make it the base for a new type of bank that really is there to serve those in need, certainly makes sense to me.”

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