At last, ANYONE can bank at the Post Office...
...but will new pact give bosses an excuse to close even more branches?
THE country’s major high street banks have signed a pact – under Government pressure – that will allow all their small business and personal customers to do banking at their local post office by the end of the year. The deal was confirmed last week with the aim of putting the 11,500strong Post Office network at the heart of local communities.
It was co-ordinated by Business Secretary Vince Cable in response to the growing problem of communities being left bankless by widespread branch closures. He sees post offices as filling this void.
Yet some fear the agreement will backfire, simply providing banks with an excuse to accelerate their closure of branches.
Last year more than 470 banks were axed and 210 are already earmarked for closure this year. Over the past five years more than 430 communities have lost their last surviving bank. There are now only 9,700 bank branches in Britain.
A spokesman for Cable’s Department for Business, Innovation and Skills says: ‘At the moment banking services offered at the Post Office are patchy. The deal that has been signed means personal and small business customers from all the major high street banks will be able to use their local post office.’
The move means bank customers will be able to put cash and cheques into current accounts, check on balances and withdraw cash.
The broader Post Office service applies only to small businesses with fewer than 50 staff. Larger firms will be excluded.
Caroline Paye, 27, from Kensal Green, North West London, welcomes the Government’s move. Out shopping with friend Agnes Sakalauskaite, 28, from Acton, West London, assistant store manager Caroline says: ‘By providing more banking services at local post offices the banks are offering more choice – so that is a good idea.
‘But I suppose it will also make it easier for bank bosses to shut down expensive bank branches.’
The banks have also signed up to a ‘protocol commitment’ to work with communities before they shut a branch. It will include promoting the services of the local post office.
Bettina Hunt, 45, from Chelsea, South West London, says the move is a good one but far too late.
The married classic car dealership co-owner says: ‘It’s a shame we couldn’t get such an agreement before thousands of post offices were closed down in rural communities.
‘As a Barclays customer I would always prefer to visit one of its branches – rather than join a long queue that seems to be a feature of nearly all post offices I visit.’ Derek French, head of the Campaign for Community Banking Services, says: ‘The Government has taken far too long in addressing the damage to communities caused by bank branch closures. This latest development does not improve the situation and allows the banks to shirk their social responsibilities. We are also concerned post offices will not be able to handle the sheer volume of new transactional business.’
The British Bankers’ Association says: ‘This is a ground-breaking agreement that ensures customers will still have banking services close at hand if a bank branch closes.
‘The way that the nation is banking is changing – with many doing most of their banking on the internet. But for those that prefer a counter service – and want to see the whites of the eyes of those serving them – a post office will be an ideal choice.’
Nick Kennett, a director of the Post Office, says: ‘We welcome the recognition the Post Office has been given for supporting banking services in the community. The Post Office is unique in providing people with access to banking throughout the country.’