Post Office is to extend its financial services role in the UK

The Prime Minister announced a much bigger role for Post Office in providing financial services, increasing accessibility of financial products for consumers and small businesses. The Prime Minister said:

“I want the Post Office to play a much bigger role, bringing banking services back to the heart of people’s communities.”

Business Secretary Lord Mandelson said:

“The Post Office is one of the country’s great assets. It is a trusted institution that offers face-to-face contact in the heart of local communities.

“The time is right to build on these strong foundations and substantially increase the banking services it offers.

“The announcement will help secure a viable future for the Post Office network. It is also excellent news for consumers and small businesses – giving people access to a full range of banking products at an institution they trust and value.”

The Post Office is one of the UK’s fastest growing financial services providers, and the country’s number one foreign currency provider. The announcement will be the next step towards turning the Post Office into a leading player in financial services, offering a full suite of products across its network of 11,500 branches.

In order to achieve this, the Government will be consulting to help the development of new banking products and services from the Post Office which meet the needs of hard-working families.

This announcement reinforces the Government’s commitment to a secure and sustainable future for the Post Office, following the decision in November 2008 to award it a new contract for the Post Office Card Account, and the investment of up to £1.7bn to 2011.