Frances La Poste says needs to increase financial products to compete

Martin Vial, president of La Poste, said an increase in the variety of financial products offered by the postal network, including the ability to offer credit to clients, is necessary for the group to compete in an increasingly liberalised market.

French law prohibits La Poste from offering credit, but Vial said he hopes to create partnerships with financial institions, similar to alliances already made with CNP Assurance or the Caisse des Depots et des Consignations (CDC).

“La Poste can no longer do everything on its own; it is necessary to form alliances and partnerships,” Vial said in an interview with French financial daily La Tribune.

“As part of our forecasts of sustained and profitable growth, financial services are going to play an increasingly important role,” he said, adding that he intends to participate as a major partner, and not be reduced to a minority role in existing financial partnerships, including the Eulia alliance between CDC and the Caisses d’Epargne.

Currently, La Poste is the third largest retail banking network in France, with 28 mln clients.

Concerning the group’s Geopost unit, Vial said he is open to forming alliances with other global package delivery groups, including exchange of capital, “as soon as these partners contribute something.”

Vial added that any partnership with French transport and logistics group Geodis, a unit of the French railways group SNCF, remains suspended until their shareholders decide on the future of their group.

“Our goal is to form a long term industrial and commercial partnership,” he said. “Other logistics groups in Europe have also expressed their interest in an alliance with us.”