Second bank rules out joint venture with An Post
Another bank has ruled itself out of a joint venture with An Post for a new banking service.
An Post is currently accepting expressions of interest from potential joint venture partners, but Permanant TSB has already ruled itself out.
Yesterday Danske Bank said it would not be submitting an expression of interest either.
Danske, a Danish company,owns National Irish Bank (NIB) and a spokesman said the bank was concentrating on building up its market share. It hoped to introduce a new range of online bank accounts and mortgages shortly.
Banks from Ireland and overseas have until September 19th to submit an expression of interest.
AIB, which already has a relationship with An Post, is the most likely of the Irish banks to apply, although it has refused to comment officially.
Ulster Bank said it was too early to say whether it would apply or not.
Bank of Ireland is also reserving its position.
An Post is hoping to sign an agreement by January. The banking service could be up and running a few months later. The postal company will offer a range of new products via its extensive network.
The company will have to decide during negotiations what to do with its existing financial offerings. For example, An Post sells a range of products through its One Direct subsidiary.
In tender documentation circulated a few weeks ago, An Post said the new banking service would sell savings and insurance products. It is not clear whether mortgage products would be offered.
Some banking analysts are sceptical about the prospects for any new bank operating via the post office network. Many believe it would take many years for such a business to produce strong retruns. However An Post believes the public is looking for an alternative to the mainstream banks.
