USPS OIG Report Paints Bright Future for Postal Banking
05/21/2015 – A report by the USPS Office of Inspector General (OIG) released May 21 outlines the next steps for implementing postal banking, in which post offices would offer basic financial services – providing affordable banking transactions to every zip code in the US, while strengthening the Postal Service.
The May 21 report titled, “The Road Ahead for Postal Financial Services,” states that expanding and enhancing existing financial services such as money orders, international money transfers, check cashing and bill payments could be accomplished without an act of Congress.
According to the OIG’s “conservative estimate,” this expansion could bring the Postal Service $1.1 billion in annual revenue within five years while serving 68 million Americans who either who don’t have bank accounts or who “rely on expensive services like payday lending and check cashing.” Some refer to these predatory businesses as “alternative financial services;” APWU President Mark Dimondstein calls them “legal loan sharks.”
While highlighting the impact postal banking would have on the financial health of the Postal Service, the OIG also recommends that the USPS focus on the affordability of the services it could provide.
Among the expanded offerings, post offices “could provide ATMs where recipients of government benefits could withdraw funds without paying a fee,” the report says.
Dimondstein praised the idea. “It’s a no-brainer,” he said. “The Inspector General’s report confirms that the Postal Service can act now to provide consumers with affordable financial services while strengthening our trusted national treasure, the public Postal Service.
“We look forward to the day when people can get their checks cashed by their trusted neighborhood window clerk,” he said.
The APWU is a member of the Campaign for Postal Banking, a coalition of consumer, worker, financial reform, economic justice, community, civic, and faith-based groups that is organizing support for the concept. For more information, visit www.CampaignForPostalBanking.org.
via APWU
I think its a great idea! I agree with previous posts that state incompetent postal bigwigs can ruin a good thing by mis- management of this additional service. Id hate to hear on the nightly news that USPS had to borrow against deposited funds. But Its true that most people cannot even get a bank account if they tried because of seriously bad credit/financial crisis, what sort of risk would USPS be taking? Then, they would have to take care of added security in offices. The revenue would be great however. Quite honestly, I would love to do this! Helping the public get ahead to better themselves, lower interest payday loans, savings & checking Accts. prepaid debit cards, we’re already processing passports, collecting food in May each year with the food drive collected by mail carriers. Delivering medicines to customers, test driving same day food deliveries, delivering packages for Amazon on non-delivery days. Helping neighborhoods by being an extra set of eyes in the communities, selling Hallmark greeting cards, Recycling the un- deliverable Bulk mail. The USPS could be like a Super-Center! All we need now is a hair salon in every lobby!!
in the real world the window clerk will be wearin a kevlar vest and be behind 3 inch’s of bullet proof glass………for all the people who look like barry obama son-if he had a son of course. great idea ghetto banks lol.
Y’all know what kind of trouble check cashing can bring. Those people do not have a bank account because no bank would give them one after a couple attempts or they are criminals to begin with.
do members of democrat communist party usa get a 10% discount lol?
Instead of calling it a “Bank”, How about calling it your “community credit union” & insert many of the products that a credit union has to offer that a bank cannot. Your Federal community credit union.
Sounds like a pipe dream fellows… The American Bankers Association will blast their Republican House and Senate members to stop this.. John Boehner and Mitch McConnell don’t give a crap about unions and jobs that pay a great living wage.. John Boehner has been in Congress for over 20 years and his state of Ohio has lost thousands of great steelworker jobs. Steel mills that closed down and went overseas.. Just don’t understand why these clowns are continually voted back into office.. We American voters are really really STUPID!!!
This is so good for our image and our relationship with our customers. Do not need Congress make our own decisions because they want to make us bleed red we come back into the black. No problem
the big banks will never allow it , let alone the payday loan sharks. they will throw money at it until it goes away–that’s the American way.