The creation of a state-run Postbank would help the flow of finance for small businesses and promote social inclusion as traditional bank branches close, Unite said on Thursday (September 7).
Unite, which represents about 730 Post Office managers, welcomed the report commissioned by the Communication Workers Union and produced by Cass Business School that makes the overwhelming case for a Postbank in the UK.
Unite officer for the Post Office Brian Scott said, “The report sets out a clear plan for a Postbank that would remove social exclusion from banking; give much wanted support to small and medium enterprises (SMEs); and make the Post Office really sustainable in the longer term, thereby securing jobs.
“The report confirms that the current relationship with the Bank of Ireland, which provides savings, credit card and mortgage services for the Post Office’s customers, is not delivering on its promises and better results would be achieved through a Postbank, which the report confirms, could be cheaper in the longer term.
“A Postbank would also be able to fill the gap on the high street being left by the retail banks which are closing local branches at a rate of knots – an estimated 760 such branches are set to close this year,” Scott added.
“A Postbank could combat the curse of social exclusion which affects the elderly, those without a car and those with disabilities.
“It is a blueprint to reinforce the Post Office as a central part of the nation’s social and economic fabric.
“We hope that ministers give this cogent report the serious consideration it deserves.”