More funding for Australia Post banking services

Australia Post has signed a deal with two more major Australian banks -Westpac and NAB- to help fund banking services at Australia Post’s network of post offices.

Today’s announcement follows Commonwealth Bank’s decision last week to also sign a landmark new Bank@Post agreement that includes a $22 million annual Community Representation Fee.

Australia Post Group Chief Executive Officer and Managing Director Christine Holgate said: “This additional funding will enable us to invest in the Post Office network so that we can provide safe, reliable banking services, boost funding to our Licensed Post Office partners and importantly continue to support communities across Australia,”

“I would like to sincerely thank Brian Hartzer, Westpac CEO, and his team, plus Andrew Thorburn, Group CEO & MD, and the broader team at NAB for demonstrating their leadership and giving their support to the Bank@Post service. In signing these agreements, they have both shown their commitment to securing the future of vital banking services which is critical to the long-term social and economic prosperity for communities across our nation.

“I have been really encouraged by the discussions with the three banks’ executive teams. We are together considering additional services for small businesses including coin floats and opening/closing accounts, as well as much more.”

About 1,500 communities – mainly in rural and regional areas – have no local bank branch.

Australia Post Group managing director Christina Holgate says the service currently runs at a “significant” loss from the cost of transaction fees and technology required to maintain the service.