Bring back postal banking, says think tank

Bringing back postal banking would give many Canadians access to otherwise unavailable financial services, says a study by the Canadian Centre for Policy Alternatives.

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The traditional financial banking sector is not meeting the needs of all Canadians, says John Anderson, the study’s author. An estimated 3% to 15% of Canadians do not have a bank account.

“Canada Post has the largest network of retail outlets already in place across Canada. Offering postal financial services would allow the millions of Canadians without local bank branches or easy access to banking the access they need,” Anderson says.

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Postal banking systems are used worldwide. They could make the extra income needed to preserve the postal system as traditional letter volumes decline.

“Canada’s postal system has a long history of delivering financial services. Canada Post currently delivers some products and could develop a full banking system by building on what already exists,” says Anderson.

Postal banking could also focus on helping low-income and Aboriginal Canadians, who Anderson says are underserved by traditional banks.

The study recommends that the federal government and Canada Post immediately establish a task force to determine how to deliver new financial products.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.