Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this4:15 pm
January 12, 2019
Offline
.
I saw this article on FP today, and thought I'd share . . .
I'm not too sure what to think of this. Their postal services/businesses are going Broke (running Deep in the Red), so they're branching into Financial Services ?!
Go figure 
- Dean
" Live Long, Healthy ... And Prosper! "
4:47 pm
October 27, 2013
Offline
Here is a rather heavily biased article written in 2020 on some history https://lindsayadvocate.ca/corporate-pressure-ended-postal-banking-in-1968-its-time-to-bring-it-back/
A key motivation is obviously Canada Post jobs and possible positive cash flow to help stop the hemorrhage but I don't think it is going to be the panacea some think. It is hard to imagine CP can offer competitive fees while still making money.
That said, there are many small rural communities that do not have physical banking and it will be of benefit to them. I doubt the business will be of significant threat to cause any of current banking alternatives to be shaking in their boots.
6:23 pm
April 14, 2021
Offline
Hard to see how CanPost can ever turn a profit, especially with that CUPW millstone tied around its neck. Apparently, Laurentian Bank is one of few on the entire continent with a unionized staff. That should foretell much.
I've always wondered by CanPost didn't try to emulate the European postal systems with Postal Buses that delivered both packages and mail along with passengers. They provided essential communications for their rural communities. The departure of Greyhound left such a massive hole in that industry.
6:48 pm
January 3, 2009
Offline
"Who is more foolish: the fool, or the fool who follows him to use Canada Post for anything?"
8:38 pm
October 21, 2013
Offline
Postal banking has been around for quite a while overseas and is quite popular for everyday banking from what my relatives tell me. They still use regular banks for other things but find the postal banks convenient.
8:33 am
December 20, 2019
Offline
phrank said
"Who is more foolish: the fool, or the fool who follows him to use Canada Post for anything?"
If it's insured and has a good rate... why not
I can see it as a great service for the elderly who use the post office anyways .
8:37 am
November 5, 2022
Offline
They should also sell beer and cannabis.
2:49 pm
December 12, 2009
Offline
I disagree. This isn't Canada Post offering postal banking; it's struck a marketing and distribution partnership with Koho Financial, building upon its lending partnership with TD Canada Trust. I suspect this isn't what CUPW had in mind in their never-ending quest for postal banking.
I'm largely opposed to postal banking because it merely potentially provides a profitable business model to subsidize an unprofitable business model. Canada Post has warned that its current trajectory, having to deliver fewer and fewer pieces of transactional mail to an ever-increasing number of addresses is unsustainable without significant changes, which could include centralized delivery, weekend delivery of parcels, and fewer delivery days of lettermail and transaction mail more broadly.
It has further warned it'll run out of money by the end of Q1 2025 without a taxpayer-funded bailout by the federal government.
As well, postal banking is also problematic because it will accelerate the number of branch closures in rural and suburban areas as the Big 5 strike distribution arrangements with a postal bank, giving them nominal amounts for service but saddling the taxpayer with the legacy cost structures.
Cheers,
Doug
Please write your comments in the forum.