Chapter 36 - Post Office Bank

Australia Post

Australia Post is still a government agency and has offices in every neighborhood. Australia Post is a consideration for a network of government public banks. The government would have to capitalize this bank, but it has the assets of the nation as its backing. The government currently stands to guarantee private banks, anyway. The government is unlikely to let any major financial organization collapse.

In the event of the private banks being found to be insolvent, it might be prudent to prepare Australia Post to become a National Public Bank. I remember having a post office passbook savings account, where the amounts were handwritten or printed into a grey passport-like book. That was the old fashioned way.

Australia Post could be issued with its own banking license. Australia Post is already a trusted entity. In country areas, it is a center for many of the facilities needed to sustain rural needs. This new bank could be mandated to lend locally and to never lend for speculative purposes. [1]

The Postbank

Postbank is one of Germany’s largest banks for private customers. It has around fourteen million clients and is one of Germany’s largest financial service providers. It focuses on business with private customers and with small and medium-sized companies. [2]

Kiwi Bank

Kiwi Bank is a wholly-owned subsidiary of New Zealand Post which is a state-owned enterprise. So Kiwibank is totally owned by the New Zealand government.[3]

Worldwide Postbanks

Many nations’ post offices operated or continue to operate postal savings systems. These include: Vietnam, Germany, Japan, China, Brazil, Israel, France, Korea, India, South Korea, Kenya, and Sri Lanka. [4] Approximately one billion citizens from fifty countries rely on their postal systems for financial services. [5] The Post Office network has a widespread presence in rural and poor areas. In Brazil, more than ten million bank accounts were opened between 2002 and 2011 after the post established Banco Postal. [6]

The United States Postal Service

USPS, The United States Postal Service had a workforce of around 491 000 in 2013. [5] A white paper has suggested that post offices should offer financial services including: cheque-cashing, small loans, bill payments, international money transfers, and prepaid cards to which salaries or benefits could be transferred. [5] Greater than twenty-five percent of American households are underbanked or unbanked. This means they do not have a bank account, or they are still using payday lenders and check-cashers. [5]