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.’
ENDS
Factfile:
- The Post Office network has reduced by a quarter in the last five years, with 11,942 branches, compared to 15,961 in 2003/04
- There are almost the same number of Post Office branches (11,956) as bank and building society branches combined (12,270 – Source: British Bankers’ Association)
- 900,000 people in the UK don’t have a bank account.
- There are approximately four million Post Office Card Account holders, of these, around 70% have bank accounts and 30% have only a POCA.
Notes to editors:
- Consumer Focus is the independent champion for consumers, created from the merger of energywatch, Postwatch and the National Consumer Council (including the Scottish and Welsh Consumer Councils). We are the voice of the consumer, and work to secure a fair deal on their behalf.
- Post Office closures under last year’s Network Change Programme, by Government region:
| Govt region | Outright closures during NCP (as of Sept 2009) | Converted to outreach |
| North East |
100 |
23 |
| North West |
228 |
21 |
| Yorks and Humber |
202 |
32 |
| W Mids |
181 |
32 |
| S West |
303 |
85 |
| S East |
277 |
19 |
| London |
161 |
0 |
| East of England |
213 |
41 |
| East Mids |
200 |
36 |
| NI |
92 |
52 |
| Scotland |
269 |
102 |
| Wales |
203 |
58 |
| Total |
2429 |
503 |
