Postbank decisions key for future of Post Office network

Ahead of tomorrow's (Wednesday 2 Dec) announcement of the consultation on Post Office financial services, Consumer Focus is urging the UK Government to realise the potential of Post Office banking services to secure a bright future for the network.

As mistrust of banks has grown, this is a major chance to reinvigorate the Post Office network and put banking services, delivered by a trusted provider, back into communities. The Government and Post Office Limited must listen to consumer needs and act upon their concerns if this is to succeed.

A greater role in financial services for Post Offices would benefit all Post Office users, but could particularly help low-income customers, small businesses, and those in rural and deprived urban areas, where there are fewer banks. There are 23 million people who use their Post Office every week, and consumers will want branches to deliver a genuine ‘neighbourhood bank'.

Consumer Focus is calling on Government to seize this opportunity, which could be a key turning point in delivering a secure future for the post office network. It urges the Government to commit to developing everyday banking products to secure a triple win that boosts the Post Office network, delivers benefits to consumers and promotes genuine choice and competition in the financial sector. Consumer Focus will soon be launching research into what low-income consumers want from a banking product and the potential for the Post Office to offer this.

Richard Bates, Public services expert for Consumer Focus said: ‘The Post Office network is at a crossroads. There is a real opportunity here for Government  to provide a secure future for the network by introducing new banking services.

‘Banking services designed to meet consumers' needs and offered by the Post Office - the  real neighbourhood provider - would give a much-needed boost to the network. This would also offer the choice of banking services through a trusted provider to consumers who have lost faith with, or been let down by, the banking system.

‘The message from consumers is clear, the Government should deliver on this opportunity and follow today's words with action.'