Government approves An Post-Fortis Banking Joint Venture

The Irish banking sector received a major boost today following the approval by the Government of a joint venture agreement between An Post and the Belgian/Dutch international financial services company, Fortis. This fully functioning retail bank will offer a broad range of financial services and products to the Irish market, including insurance, mortgages, credit cards, indeed all the services to be expected from a first class retail bank.

The joint venture will employ approximately 250 people initially, rising to 500 within five years, and its products will be rolled out between March and July of 2007. This decision, which will change the face of banking in Ireland, is seen as a positive, exciting and strategically important initiative for customers, the shareholder, staff, management and Postmaster contractors.
Fortis, which has a market capitalisation of euro39.7 billion, was chosen as the preferred partner following a rigorous selection process which reviewed proposals from both Irish and international players. Fortis is actively participating in successful joint ventures elsewhere, notably with the Belgian post office.

The parties are investing heavily in the joint venture which will be a 50/50 partnership between An Post and Fortis . An Post will provide access to its network of branches together with two successful trading entities, PostPoint and One Direct. Fortis will contribute its international experience and expertise as well as cash. One Direct will form an integral part of the new company and its headquarters in Athlone will play a pivotal role.

The new financial services joint venture will utilise the network of post offices throughout Ireland to deliver a wide range of simple, straightforward, value for money retail banking products and services which will appeal to the banked and un-banked alike.

An extensive programme of training, refurbishment, branding, promotion and product preparation will be undertaken during the coming months. The products and services of the joint venture will be rolled out from early 2007 and these will include telephone and internet banking.

Commenting on the new joint venture An Post’s chairperson Margaret McGinley said: “This is a very important and exciting day for An Post and we are delighted to welcome Fortis to this joint venture. From the outset we have been acutely aware that the choice of a suitable partner for this deal would be fundamental to its future success. The experience, knowledge, and skill of Fortis will be essential in this highly competitive market. We are confident that the joint venture will provide a strategically significant and sustainable alternative income stream that will contribute to the future financial stability of An Post.

“This initiative will allow us to restate, and reinforce An Post’s relevance to the community that it has served so well for so many years by making financial products and services more readily and widely available. The new financial service created through the joint venture will be in touch with what people want, not just now, but into the future. We intend to build on the trust that people have in An Post and we will ensure that we provide a strong appeal to a younger and more diverse Ireland,” she added.

An Post’s Chief Executive Donal Connell said: “We are delighted to be welcoming such an internationally successful financial services partner as Fortis to this joint venture and the establishment of this new banking service. This deal is of significant importance to An Post, its customers, its staff and contractors and gives the company a new relevance in the economic, business and social life of the nation.”

“We look forward to delivering a range of outstanding products and services to our thousands of existing customers and the thousands more who can access our post offices throughout the country. At a time when others are departing we are bringing retail banking to the people.”

Thierry Schuman, General Manager – Retail Banking, Fortis said: “We are happy that the Irish Government has approved this joint venture and by doing so, has endorsed the very detailed preparation and background work undertaken by both parties. Together we look forward to combining the best of An Post’s tradition of trusted customer service with the banking and insurance expertise of Fortis to provide a truly innovative new retail banking experience for all – customers, staff and Postmasters alike.”