2020 target to be major player in financial services

Post Office Money plans to compete with Britain’s high street banks

Post OfficeThe Post Office is planning to challenge the high street banks by uniting all its financial services operations into a single business.

It believes Post Office Money could become one of the biggest financial groups in the country with one of the most extensive networks of branches.

The Post Office already works with Bank of Ireland and the Post Office Money brand would give customers access to services through 11,500 bricks and mortar outlets as well as its online business.

Nick Kennett, director, financial services, at Post Office Money, said: “Post Office Money is committed to providing customers with an offering that is fair, accessible and helps them manage their financial needs.”

The Post Office launched personal current accounts two years ago and has 3 million customers using its banking and insurance businesses and 9 million using its foreign currency service. As part of its aim to become a major financial services player by 2020 it will offer home loans, savings products and travel insurance.

It is likely to promote its local and universal presence, often in suburban neighbourhoods, as an answer to bank branch closures. Some banks have abandoned the ‘last branch in town’ principle, leaving some communities without physical access to bank facilities. The Post Office’s network is more than double the combined total of Barclays, HSBC, Lloyds and Royal Bank of Scotland.

The move came as Spanish bank Santander said it had reached agreement with the Post Office for its customers to bank at the Post Office’s outlets.

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