Bank of Ireland joins UK Royal Mail for finance venture

The Bank of Ireland Group is teaming up with UK Royal Mail to launch a range of Post Office-branded financial services products.

Consumers will be able to take advantage of offers including personal loans, savings accounts, credit cards, personal insurance and mortgages.

The Bank of Ireland Group is investing #125m to help establish the scheme’s infrastructure and fund start-up costs. The financial giant will also aid provision and sourcing of the product range, which will be distributed throughout the country’s network of Post Office branches.

The joint venture will be owned equally by Post Office and Bank of Ireland Group, over an initial term of ten years.

Mike Soden, group chief executive at Bank of Ireland, says: “This is an excellent opportunity for our company to extend its reach in a market that is central to our strategy.

“The joint venture, combined with our existing personal and business banking operations in the UK, gives Bank of Ireland a unique level of access to the UK retail financial services.”

Bank of Ireland already operates a foreign exchange service with the Post Office, called First Rate Travel Services.