Australia Post forms alliance to promote rural banking
Australia Post and the Rural Bank are proposing to join forces to offer banking services via regional and rural post offices across the country. The two companies have entered into a non-binding heads of agreement for the distribution of banking services. The parties are working towards agreeing a binding distribution agreement as soon as it is practicable.
It is intended that customers will be able to open Rural Bank deposit accounts at 1,400 post offices across the country. In addition, 130 post offices in areas with a strong agribusiness presence will offer Rural Bank loans through dedicated Rural Bank Business Development Managers.
The agreement will provide greater banking access and choice for regional Australia by bringing together Rural Bank’s innovative and specialist banking services with Australia Post’s vast retail network, the Post said.
Paul Hutchinson, chief executive of Rural Bank, said: “This partnership will give more people access to Rural Bank’s range of competitive transaction, savings and investment products, as well as specialised lending for Australian agribusiness. It is an ideal complement to our existing rural distribution networks.”
Under the arrangement, it is also intended that customers will be able to access their Rural Bank accounts through the Bank@Post service available at 3,287 post offices. Through this service, customers will be able to make deposits, withdraw funds and enquire about their balance.
Christine Corbett, executive general manager of retail services for Australia Post, said: “We are proud of our association with Rural Bank, an organisation that shares our understanding of the unique needs and demands of rural and regional life.
“This is a great example of a partnership that will not only increase services to rural and regional areas, but also help support our post offices in communities across the country by generating more business for them.”
Hutchinson added that Rural Bank is strongly committed to meeting the needs of Australians living in rural and regional areas.
“We will employ a team of Business Development Managers to support the Australia Post network at a local level, ensuring that customers receive the best possible service experience,” he said.
“We are proud that money deposited with us is reinvested back into rural and regional communities across Australia.”
The announcement of the Rural Bank – Australia Post proposed partnership has been welcomed by Malcolm Jackman, managing director of Elders, Rural Bank’s principal rural distributor.
“This agreement will deliver a substantial extension to Rural Bank’s reach and presence in regional Australia. Rural Bank’s profile and strength clearly stand to be enhanced by this partnership, which is good news for all the Bank’s customers and distributors,” he said.
The Post Office Agents Association Limited (POAAL) also welcomed the proposed alliance.
POAAL CEO Ian Kerr said that this new partnership should provide a welcome new business stream for licensed post offices in rural areas.
“The proposed partnership will take advantage of Australia’s largest physical retail network – the post office network – and build upon the trusted post office brand,” he said.
