Call for Post Office to deliver more locally

One and a half million Scots would use their post offices more often if they could access their bank accounts there, according to Consumer Focus Scotland.

 

 

The watchdog argues that by permitting their customers to do their everyday banking over the post office counter, the High Street banks would particularly help those in rural areas, where thousands of branches have closed in recent years and those that remain are often some distance away.

Around a third of bank and building society branches across the UK have closed in the last 15 years and there are now more post offices than bank and building society branches combined. In fact, the post office network offers nine or ten times as many branches as some leading banks.

Sarah O'Neill, director of policy at Consumer Focus Scotland, said: "Our research shows there is real consumer appetite to do everyday banking at post offices. Many communities in Scotland, particularly in rural areas, have only one bank branch or even none at all.

"Some banks are also now charging basic bank account holders to take their money out of ATMs not operated by their own bank. If there is only one cash machine in an area this could cause huge problems for vulnerable people.

 Age Scotland spokesman Callum Chomczuk said: "We fully agree with Consumer Focus Scotland, better current account access at the Post Office would both benefit customers, who would enjoy the convenience of more face-to-face counter access and the post office network, which would experience greater footfall.

"This could result in a more sustainable future for the post office network, which many older people, particularly those in the rural areas, rely on."

The consumer watchdog's research shows that half of those who currently access their current account at a post office do so because their post office is easier to get to than their bank. Around a third said their bank had no local branch and 5% said that the banks where they lived had closed.

Consumer Focus Scotland wants five steps to be implemented to improve consumers' access to banking services at the post office:

HSBC and Santander should join other major banks and allow all of their customers access to current accounts at post offices
All banks should offer full current account transactions at post offices, in line with the good practice demonstrated by Halifax, Clydesdale, Lloyds TSB, Co-operative Bank, Smile, the former Alliance and Leicester, Cahoot and Bank of Ireland. Major high street banks including Barclays, First Direct, Nationwide, Natwest and Royal Bank of Scotland (RBS) only offer some banking transactions through the Post Office.
Banks should raise awareness of post office access through messages on statements, ATMs and online banking services
Post Office Limited must improve the service it provides in its branches - queues and poor quality of service could be disincentives for consumers wishing to access their bank accounts at post offices
Post Office Limited must offer competitive commercial terms to banks for services provided to their customers to make this service workable.