Tag: UK

The Post Office is set to unveil a range of financial products in a direct challenge to banks, building societies and other providers.

Post Office bosses are convinced they will be able to poach millions of disillusioned banking customers because of the easy availability of branches – it has more than 17,000 outlets.

This week, the Post Office will introduce an unsecured personal loan which will be followed by a range of core products including mortgages, credit cards and life and home insurance.

Royal Mail looks set to press ahead with plans to introduce size-based pricing after asking postal regulator Postcomm to consider the proposals, despite industry pressure to quash the initiative.

The new pricing system will take the size of an item, rather than solely weight, into account, and is to be introduced in April 2005.

The proposals drew heavy criticism from industry bodies when they were first unveiled. Changes have since been made to the original proposals, with Royal Mail taking many of the industry’s concerns on board.

Royal Mail is extending the changeover period for its Postage Paid Impressions (PPIs) proposals in the face of a backlash from industry bosses, who claim they have not been consulted on the issue.

The move follows the DMA (UK)’s appeal to Royal Mail to postpone a decision until it has talked to the industry. Royal Mail has agreed to extend the migration period to 12 months, with a revised implementation date of July 31, 2004.

The DMA welcomes the move, but remains concerned that Royal Mail has still not spoken to the industry. It has now asked the company to enter into talks on the PPI proposals and is awaiting further response.