Mandelson gives Post Office a boost

The UK government is promoting new financial products and services that could be offered via the Post Office, ranging from a business account to children’s savings, reports Press Association. The article continues:

Business Secretary Lord Mandelson said growing financial services would help secure the future of the postal network, which has suffered a wave of closures in recent years.

A public consultation was launched on the type of products that could be offered.

It included: a Post Office Current Account, accessible from any of the 11,500 branches across the UK; a Children’s Savings Account, designed to encourage children to save through their local post office; a Business Bank Account; and a Weekly Budgeting Account, offering a simple account to low income households so bills could be paid by direct debit every month or quarter.

Lord Mandelson said: “Growing financial services at the Post Office will help secure the future of the network and give people access to a full range of banking products at an institution they trust and value.

“At a time when some banks and financial services companies are seeking to reduce face-to-face contact with customers, the Post Office stands out. It offers a trusted brand, and has more branches than the high street banks combined. It is ideally placed to bring banking services back to the heart of people’s communities.

“Our consultation outlines exciting proposals, but I want people to have their say. This is an opportunity for local communities to tell us what they want and need from their Post Office.”

Prime Minister Gordon Brown said at the Labour Party conference in September that he wanted a bigger role for post offices in providing financial services aimed at increasing access to reliable financial products for consumers and small businesses.

The announcement will be welcomed by business groups and trade unions, which have been campaigning for a People’s Bank to help secure the future of the UK’s post offices.