Estonian Post seeks banking partners to make use of post offices

Estonian Post is looking to expand its provision of banking services within its post office network. The company has been working with Swedish bank SEB Bank over the past year under a cooperation agreement that provides banking services across postal counters in 315 post offices across the Baltic republic.

But it now says it is “open to new challenges”, and ready to negotiate with other financial institutions to start similar service co-operation arrangements.

Estonian Post board member Aavo Kärmas said financial services were an important part of the Post’s service portfolio, but that cooperation also provided big opportunities for banking partners.

“Our post office network exceeds three times the total number of branches of all banks in Estonia,” he said.

“In recent years, banks have closed dozens of branches in small towns. However, there is a post office in every Estonian parish, where financial services can be successfully provided, which is a significant opportunity for banks to reach rural population.”

Estonian Post is opening its doors to both national and international banking partners, said Kärmas.

“During this year, we plan to review our retail network strategy and are aiming to find the best solution for provision of financial services at our post offices,” he said.

Current financial services available in Estonian post offices include the opening of accounts, depositing and withdrawing of money, payments including direct debit arrangements, debit or credit card ordering, and the conclusion of internet banking.