Post Office to install 1,500 free ATMs in branches

The Post Office® today announced plans to install an extra 500 free-to-use automated teller machines (ATMs) in its branches – on top of the 1,000 it had already committed to roll out within the next five years.

Alan Cook, Managing Director of Post Office Ltd, said the expansion in free-to-use ATMs underlined the Post Office®’s vision to be a universal provider of free cash access for its customers.

The Post Office®, under an agreement with its financial services partner, Bank of Ireland, announced last summer that 1,000 free-to-use ATMs would be installed in the network. The Post Office also confirmed its intention to withdraw from its involvement with third party fee-charging ATM suppliers.

Following a review of its 14,300-strong branch network, the Post Office® is identifying additional sites where it is economically feasible to replace existing third party surcharging ATMs with their new free-to-use ATM service. The Post Office® is also identifying more new sites that are suitable for free-use cash machines. It is anticipated that installations will soon hit an average of 10 per week.

The Post Office® recently installed a free-to-use ATM service at the Speke branch in Liverpool, replacing a fee-charging ATM. Since installing the free ATM service, use of the cash machine has already increased seven-fold.

Mr Cook said: "The expansion in free-to-use ATMs in Post Office® branches complements the free cash access service we offer at the counter on behalf of 19 banks and building societies.

"More than one million free cash withdrawals are made every day at the Post Office®, making us the largest, free-to-use cash network in the UK. But we want to do more; our goal is to be able to offer every one of over 25 million customers who visit us every week access to their cash free of charge – no matter who they bank with – across the counter in every branch and, where it’s economically feasible, via a cash machine as well."

The roll-out of free-to-use cash machines began in October 2005. One of the first new Post Office® ATMs was installed in Cowie, Scotland – an area where there were two other non-Post Office® ATMs, both of which made a charge for cash withdrawals.

Zulf Ahmed, the subpostmaster at Cowie, said he has seen a dramatic rise in the number of people visiting the branch because of his new cash machine.

"Many of my customers rely on an old-age pension or other benefits and they love the local convenience of free access to their cash – I can now provide them with that along with everything else. My Post Office® is a real hub for the local community," he said.

ENDS

Issued by:
Post Office Ltd press office:
148 Old Street
London
EC1V 9HQ

www.postoffice.co.uk

Notes to Editors:

• The agreement between the Bank of Ireland and the Post Office was formally signed at the Aldwych Post Office® branch in London. A picture is available on request from the press office.
• There are currently 2,500 ATMs in Post Office® branches: approximately 680 are free-to-use, and the remainder charge a fee for cash withdrawals which is levied by the machine provider. A number of companies currently supply and maintain ATMs in Post Office® branches. As contracts expire, the Post Office® will either replace those machines with a new free-to-use ATM (operated by Bank of Ireland), or will decide not to renew the contract if it relates to a charging ATM. Subpostmasters will be able to install surcharging ATMs in the private retail side of the business they run alongside the Post Office® branch via a contract direct with an ATM provider – but the Post Office® will not be involved in these contracts.
• The Post Office® continues to seek membership of the LINK organisation, in order to allow every one of its over 25 million weekly customers free access to their cash at their local Post Office® branch.
• The Post Office® provides personal banking services for current account and basic bank account bank customers free of charge on behalf of the following UK banks and building societies:
Current accounts Basic bank accounts
Alliance & Leicester
Bank of Ireland
Barclays
cahoot
Clydesdale Bank
first direct (Scotland only)
Lloyds TSB
Nationwide Building Society
smile
The Co-operative Bank
Abbey
Alliance & Leicester
Bank of Ireland
Bank of Scotland
Barclays
Clydesdale Bank
First Trust Bank
Halifax
HSBC
Lloyds TSB
Nationwide Building Society
NatWest
Northern Bank
The Co-operative Bank
The Royal Bank of Scotland
Ulster Bank
Yorkshire Bank

• The above list represents approximately 40% of the current and basic bank accounts in use in the UK. The Post Office®’s vision is to enable all its customers to have access to their cash free-of-charge whatever bank account they have with any bank or building society and the Post Office® continues discussions with banks and building societies to this end.