Make Post Office your New Bank

Going through dire financial straits and staving off bankruptcy, the United State Postal Service could make an entry (in simple fact, a re-entry) into your financial sector by providing a suite of personal services, which could get an estimated $8. 9 billion in annual revenue.
Based on a white paper published through the agency’s Office of your Inspector General, the Postal Service is able to providing services that include a reloadable prepaid card (possibly with the ability to earn interest), basic check-cashing, Two ATMs, mobile applications and a cash payday loan alternative.

Such offerings hint at a shot to steal market discuss from banks, but the Postal Service claims it is not vying for lender customers.

“To the counter, we are suggesting which the Postal Service, could tremendously complement banks’ offerings, ” your report said. “The Postal Service is well positioned to provide non-bank financial services to those whose needs usually are not being met by the traditional financial sector. ”

Using this type of venture, the agency would focus on the 68 million American adults who usually do not use or qualify for traditional varieties of bank products and lending products. If 10 percent from the underserved demographic uses your Postal Service, roughly $8. 9 billion could be generated per year for that agency.

The proposed prepaid card, aptly named the Postal Greeting card, would be issued by the partnering bank and maybe it's used like most debit greeting cards for purchases at stores and cash withdrawals in ATMs. An interest-bearing feature could be added to encourage personal savings. Mobile applications, Post Office ATMs and partnered ATM networks allows cardholders to access and manage their accounts.
Another proposed product is usually a payday-loan alternative that uses a borrower’s tax refund as collateral.

A limited amount of financial services are available today through the Post Workplace today. The Postal Services already offers domestic and international money orders and electronic money transfers to nine Latin American nations.
In 2011, the agency began selling American Express gift cards included in a market test that has since expanded to retailer gift cards from companies Amazon, Barnes & Respectable, Macy’s and more.

From 1911 to 1967, the Postal Service made available savings products that under a economic climate that held deposits. Nevertheless, due to a drop in usage, the method was terminated.