Remember our blog, “Could Email Save the Postal Service?” Well, while the “Neighborhood Package Centers” idea didn’t catch on, there’s another theory going around that could possibly save the business – banking.
In a report by the USPS Office of Inspector General, it’s proposed that the Postal Service offer financial services to the “underserved” (those without bank accounts or who are using costly services.) According to the report, 25% of U.S. households are considered underserved and pay an average of $2,412 dollars each year on financial service interests and fees. If the Postal Service partners up with banks, it could act as a bank and offer financial services to these people.
What would the USPS offer?
These proposed banking services would include things like reloadable prepaid cards, check-cashing, international and domestic money transfers, bill pay, and small loans.
With these offerings, the Postal Service would have the chance to make up to $8.9 billion in new revenue every year. It could also lend banks a hand: Since 2008, 90% of the bank branches that have closed are located in lower-income areas. By offering banking services, the USPS could help banks reach customers in areas where the bank isn’t present.
In an editorial by Senator Elizabeth Warren, she says, “USPS could partner with banks to make a critical difference for millions of Americans who don’t have basic banking services because there are almost no banks or bank branches in their neighborhoods.”
The Postal Service business has been on the decline since 2007, and several ideas have been proposed in order to help save it. Like many others, the idea of the USPS expanding its services has been met with both positive and negative feedback. While some believe it could benefit both the business and the underserved, others think the possible revenue won’t be enough to save it.
Our Philadelphia web design company wants to know: What are your thoughts? Would you use the Postal Service for some of your banking needs?