Singapore Post to distribute financial products
Singapore Post has said it plans to distribute retail financial products and related services through its post offices in order to extend its services.
‘Logically, it is the next step for SingPost to leverage our strengths in distribution to provide these customers with a wider variety of financial services, thereby maximising the use of our company’s capacities,’ SingPost CEO William Tan Soo Hock said.
The company said that subject to regulatory approval, it will introduce micro remittances, investment and insurance products, secured consumer financial products, secured personal finance and cashflow management products at its post offices.
SingPost currently operates 62 post offices countrywide.
It plans to introduce the new products over the next eighteen months, with an initial trial to start in June at two post offices, SingPost senior director Victor Ow, who is heading the initiative, said.
‘We are investing 2 mln sgd for up to March 2005 into this. After 18 months, if all things go smoothly and we see that the business is viable, we will go into it fully,’ Ow said.
Currently, the company derives 79 pct of its revenue from its core mail business, while its retail services contribute 6 pct.
‘We expect our revenue from retail and financial products to account for about 30 pct of our total revenue in five years, while we continue to enhance our postal services to our customers,’ Tan said.
