Canada Post sets up pilot projects to look at postal banking

Canada Post has agreed to study how it could offer postal banking, including through setting up pilot projects at certain locations, as part of a new collaboration with a union representing rural postal workers, reports Canada’s National Observer.

The postal service and the union, the Canadian Postmasters and Assistants Association (CPAA), both confirmed the agreement, which is laid out in a letter of understanding between the two entities that was obtained by National Observer.

Canada Post will allocate up to $500,000 to a committee that will look at how rural post offices in places like the B.C. islands could offer services such as money transfers or cashing government cheques. As part of the study, it will set up “proof-of-concept” projects in “select locations.”

Canada Post already does offer limited financial services like postal money orders through a partnership with MoneyGram, no bank account required.

But its agreement with CPAA, which is dated Jan. 21, 2020, represents the first time it committed during the collective bargaining process with the union to examine the idea in greater detail.

CPAA has been vigorously advocating for bringing back financial services to rural post offices.