Call for UK banks to expand service access at post offices

Consumer watchdogs in the UK have called for banks to allow their customers to carry out basic services through their local post offices. Consumer Focus said today that it believed there was potential for 18m people to make use of such a service, compared to the 4m who currently use postal banking services.

Allowing use of Britain’s 11,800 post offices for cash withdrawals, deposits and information access would mean easier access for bank customers – particularly those in rural areas where local bank branches have been closed.

It could also give the post office network a “valuable shot in the arm”, said the consumer group.

Currently, many banks that do offer services at the Post Office do not offer a full range of services, while banking giants HSBC and Santander offer little or no access at all via post offices.

Andy Burrows, post office expert at Consumer Focus, said there was “real consumer appetite” for everyday banking over the post office according to the watchdog’s research.

But, he said as well as expanding service access, there was a real need to improve consumer awareness about services available through the post office.

“Four out of five people were unaware that they could access their account through a post office, with two-fifths of this group telling us they would consider doing so if they knew it was possible,” he said.

Service access

Banks in the UK have closed around a third of their branches in the last 15 years to trim costs, with 2,200 closing since the year 2000. Consumer Focus said there were now more post offices in the UK than bank and building society branches combined – and up to 10 times as many post offices as branches of some of the leading individual banks.

Consumer Focus said its study suggested 51% of people found their post office easier to get to than their local bank branch.

Almost a third of people said their bank had no local branch in their area.

The research also suggested a low level of awareness among consumers that some banks do provide services via post offices.

Consumer Focus said banks should promote awareness of post office access in their statements, through their ATMs and websites. The group called on HSBC and Santander to allow customers to access services through the post office, and called on banks including Barclays, First Direct, Nationwide, Natwest and Royal Bank of Scotland to offer a full range of services through the post office.

On its side, the Post Office needed to work to improve services at its branches, including reducing queuing times and improving customer service.

Burrows said: “Better current account access at the Post Office would be a win-win situation – customers enjoy the convenience of more face-to-face counter access and the post office network benefits from greater footfall.”