The Post Office (UK) has refreshed its long term financial services partnership with Bank of Ireland. The relationship goes back 15 years, and currently serves over 2 million customers in the UK.
The renewed partnership will focus on providing an exclusive Post Office branded range of retail savings, residential mortgages and personal loans. The relationship has also been extended from 2023 to at least 2026.
“In addition to our partnership with Bank of Ireland, we intend to continue to strengthen our presence in the UK financial services market through new partnerships which expand our financial services offer and deliver relevant products and services to meet the changing needs of our large customer base and local communities.” - Chrysanthy Pispinis, Post Office Money Director
What’s interesting about the Post Office / Bank of Ireland relationship is that the financial products are Post Office branded. Australia Post, by contrast, offers a range of banking services for banks under its Bank@Post programme, but those services aren’t branded as Australia Post services.
Partnerships or postal bank?
The debate over whether to partner with banks (either to offer post office-branded services, or to offer services as an agent) or to create a postal bank is similar to the debate regarding operating a closed or open delivery network.
Looking at successful postal banks, the one thing they have in common is that they have very little in common other than their success! And even then, their continued success isn’t guaranteed - just as the postal sector is subject to disruption, the banking sector is subject to upheaval arising from fintech start-ups, cashless banking, and other factors.
Perhaps this is a topic for a future podcast. Feel free to share your comments below or on LinkedIn.
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