You could be forgiven for thinking that the
fates of the global postal services were intertwined with that of the letter.
But despite the apparent death of the ancient art of letter writing, postal
operators are still very much alive; in fact they are flourishing.
Using some of the insight from Timetric’s latest report, I will be examining why postal services have been able to successfully venture into the realm of finance.
Using some of the insight from Timetric’s latest report, I will be examining why postal services have been able to successfully venture into the realm of finance.
Touching the untouchables
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| Remote locations has been a strong asset for opening up the market |
The established networks of the postal
services have acted as an efficient platform to provide financial services to
isolated members of the public. Touchpoints in some of the most remote parts of
their counties have meant that postal services have had unique opportunities to
open up the market to previously unbanked rural populations.
Everybody wins
They have not just touched the
geographically isolated, but also the socially vulnerable. Governments are
supporting and pressing their postal operator to offer basic financial services
to isolated social groups to combat poverty and inequality. By providing
savings accounts, insurance, pension payment services, remittances services and
loans products the postal services supply vital support. Their admirable
business plan is both commercially and socially rewarding.
The perfect financial partnership
The glory of this unique achievement must,
however, be shared with the postal operator’s important partnership with banks.
These alliances have produced major reward for all parties involved due to
their combined skills and assets. For example, the UK Post Office’s decision to
team up with the likes of Barclays and Halifax has delivered impressive results.
A trusted brand
Their long tradition of providing reliable
and cost effective services has meant that postal services have had high levels
of consumer confidence. The instantly recognisable quality brand has ensured
that postal operators carry the invaluable asset of consumer trust in an
industry currently very short of it.
Communication’s ever increasing reliance on
the internet has unquestionably diminished the post’s traditional revenue
streams. Yet the postal services are reporting healthy profits, largely thanks
to their financial enterprises.
Globally, in 2011, financial services accounted
for 11.7% of postal operators’ total income. Timetric’s in-depth analysis
forecasts this percentage to further increase significantly. The established
networks, trust and banking partnerships have made the postal services across
the world important organisations for both the financial industry and society as a whole.
If you want Timetric’s market leading
insight and data about the financial services of post offices around the globe,
then please click here.
Sources:
- Opportunities in Global Post Office Financial Services
- Post Office Financial Services: Emerging Economies
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