# An Post plans to take on banks with new current accounts



## cork (12 Nov 2015)

http://www.independent.ie/business/...banks-with-new-current-accounts-34189237.html

They would probably have to offer a good deal to encorage people to switch


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## tallpaul (12 Nov 2015)

They would also have to seriously look at their opening hours. The two closest PO's to my place of work, both close at lunchtime from 1-2pm!


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## Lightning (12 Nov 2015)

It's a strange move in some respects. 

Banking is moving more and more online rather than expensive to run in branch.

Also, the current account market is already quite competitive and few people switch. How will they complete with the PTSB free banking and 100 EUR sign on bonus? How will they complete with the KBC free banking and 4.00% AER regular saver offer?

An Post have failed before with current accounts. They could fail again.


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## Clonback (12 Nov 2015)

Currently there is a great opportunity for An Post to launch an alternative banking service.The competitive advantage the post office has is consumers trust.Most people feel the banks don't want them at their counters.
Any post office interested in business opens  all day at this stage.


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## mathepac (12 Nov 2015)

They open six days a week, already handle limited banking services to replace closed AIB branches and my local branch opens late once a week 'til 8:00pm. As against that as already pointed out they've failed as a bank already and they've failed as a courier company (as close to their core business as it gets).


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## Clonback (12 Nov 2015)

Postbank which closed in 2010 was a joint venture with Bnp Paribas who decided to exit as a result of the dire financial climate.
It had 200000 customers and if An Post now gets its offering correct i.e online and in the c. 1000 post offices people would be happy to exit the main banks for everyday transactions.
This would also help to put life back into rural Ireland.


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## ardmacha (13 Nov 2015)

What An Post should do is design an efficient online service in conjunction with someone, but also provide the option for customers to visit Post Offices for certain types of transaction. The best of both worlds.


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## thedaddyman (13 Nov 2015)

Does anyone know of An Post will be setting up their own bank with unique sort codes etc or have they entered into some sort of arrangement with one of the other clearing banks where they will "hang" off that banks IT infrastructure and systems?. If it's the latter, then it could add a day or more to the clearing of any payments so they would be less efficient for any transactions that are not across the counter.


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## MrEarl (13 Nov 2015)

Hello,

This could be great, or a complete disaster.... with the key concern being if it is a disaster, ultimately the State gets to pick up the tab.  As such, the venture needs to be properly structured and run from Day 1, with proper expertise either hired well in advance or else brought in by way of a joint venture with an experienced and respected bank.

It seems to be that the joint venture is the better option.  We could tap into expertise and experience within the industry, rather than see An Post try to shuffle staff without relevant experience into roles they may not be properly trained for or want to do, alongside seeing them try to hire people and perhaps not get the recruitment right in terms of the people they hire or the time given to establish the proper staff base.

The venture needs to be entirely "ring fenced" from An Post, other than for initial equity injection and ideally with investment also coming in from elsewhere - preferably from a banking partner (someone not operating in the Irish retail market) and perhaps other sources (part floatation, pension funds etc).

Could An Post partner with the likes of the Irish League of Credit Unions to provide loans through the local credit unions for example (granted the credit unions are independent, but with consolidation under way in the credit union sector and the Central Bank now trying to get a proper grip on them for regulatory purposes, future potential exists - albeit closer to 5year away than 1year away) ?

There is a massive branch network available through An Post nationwide and while this offers great potential, we also need to be very clear when we remember that the staff working at the counters of these post offices generally are not trained or experienced to sell various financial products.  As such, either massive retraining needs to take place, or else some form of recruitment drive to bring in properly trained and experiened people.

All in all, I think the risks are quite high for An Post and while it has great potential (particularly if they can replicate the way the British Post Office and Bank of Ireland successfully work together), it also has the risk of being a massive cost and that cost will ultimately be for the State, if we have to bail on An Post out of a financial mess in a few years time.


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## Clonback (14 Nov 2015)

Mr Earl
An excellent post with a great insight into what An Post has to do in order to  capture an obvious gap in the market.The postmasters are looking for more business but the problem rests with An Post management.Numerous reports have been carried out but no strategy.
Bobby Kerr is completing yet another report and hopefully we will see a new roadmap.


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## mathepac (14 Nov 2015)

An Post already sells financial products via its OneDirect operation (home & car insurance), processes direct debits and finance charges for these products and is a recognised and authorised as a finance intermediary by the Central Bank. Why could loans not be processed via this centralised set-up and let the branches work at the transaction level as they already do?


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## tvman (14 Nov 2015)

I wonder why they're planning it. Presumably banks only offer current accounts to generate fees, gather deposits for lending or to cross sell more lucrative products. If they come in at a competitive fee level (i.e. free or very low fees) its hard to see why they're doing it unless they begin lending and/or offering other financial products.


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## theresa1 (14 Nov 2015)

This should be based on Kiwibank in New Zealand. I would have liked to see EBS or even PTSB 'forced' into co-operating with An Post but can't see that happening.

People who agree to get pensions paid into a new An Post current a/c may get FREE banking would be my guess.

I hope the branding is good - Postbank was 'cheesy'.


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## Lightning (15 Nov 2015)

The Sunday Times Ireland today reports that An Post are looking for a taxpayer subsidy for their basic free banking accounts. 

An Post saying they are offering the product to ensure that more people, especially the elderly, have a bank account. The reality is the commercial banks already offer free banking to those over 60/66. 

Taxpayers should not be subsidising this free banking product.


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## MrEarl (16 Nov 2015)

CiaranT said:


> The Sunday Times Ireland today reports that An Post are looking for a taxpayer subsidy for their basic free banking accounts....



I saw red as soon as  I read that news.

Absolutely no way should the tax payer be paying for this.  Perhaps wise to start firing off a few emails to the politicans, to put them on notice that this is not a runner, before it even starts to grow legs.

I'd love to see An Post become more successful and profitable, but not at the expense of the taxpayer (be it directly or indirectly).


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## Clonback (16 Nov 2015)

An Post is a loss making business for many years due to civil service type management.They employ far too many doing the wrong type of job and succesive governments failed to tackle this.
With 1000 outlets which could easily be trimmed down by 25% it is well placed to develop and expand its service to local communities.All post masters are paid a fee based on transactions to run the business but do not own the business.In the U.K. all post offices are individually owned so they can be traded.Why not follow the U.K. Model although not perfect it would bring a more enterprising focus to the business.


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## Gerry Canning (16 Nov 2015)

Clonback.

Most public type services are @ 1st view lossmaking ,yet in the round are beneficial/profitable to society. I would think An Post are in that bracket.

{loss making due to civil service type management}
Hmn ! was it not our well trained? professional? regulated Bankers? who have cost me Billions? I think I prefer the honesty/dullness of civil servants to our masters of free enterprise! 
I trust Joe in my local Post Office to give genuine advice and sell me proper products.
At least with Joe I should avoid future repairs to our finances.

{employ far too many doing the wrong type of job}
That is a very strong claim.
Forgive for being a tad cynical , would that view come from the( be good to private ie efficient model of banking magazine?)


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## Clonback (16 Nov 2015)

Gerry
Joe your local postmaster is the right man who wants to develop his business and cannot do so.He is subjected to an out dated business model and given the right direction with proper incentives he will provide an even better service.As I said the Post Office has the trust of their communities which is one of the only services left particularly in rural Ireland.
Most Post offices in large towns and cities are understaffed but it is the layers of management thats the problem.


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## Alex (9 Jun 2016)

what is happening with this? it's the middle of the year now, well past early this year???


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## Alex (23 Jun 2016)

...i guess nobody cares about the product so.


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## Boyd (23 Jun 2016)

No news to report on it really! Nothing in media etc.


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## MrEarl (23 Jun 2016)

theresa1 said:


> This should be based on Kiwibank in New Zealand. I would have liked to see EBS or even PTSB 'forced' into co-operating with An Post but can't see that happening....



Sorry, but I simply could not agree with you on that point about merging it with either EBS or PTSB .. neither of those institutions have the skillsets to run their own operations properly, not alone take on a project like a merger with An Post.  They struggle to get the basics right, not alone anything more than the basics.

Both of those institutions should be sold off and acquired (or merged) to more capable and experienced banks (which are not state owned).



Alex said:


> what is happening with this? it's the middle of the year now, well past early this year???



I'm sure there are some consultants making a small fortune out of this...


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## theresa1 (9 Jul 2016)

EBS is owned by AIB so I presume you don't have much confidence in them either. I wouldn't be a fan myself.

When I say EBS or even PTSB I'm talking about just a bank option - the bank would still have it's own branches but would operate through An Post as well.

It be fantastic if the Government did a deal with Virgin Money - sell EBS to them and then re-brand and away you go -bit of competition and people could be brought in that know what they are doing.

Kiwibank is a huge success story. I wonder could we get them over.


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## MrEarl (9 Jul 2016)

theresa1 said:


> EBS is owned by AIB so I presume you don't have much confidence in them either. I wouldn't be a fan myself......



We are half way through 2016 and AIB continue to recruit staff for their FSG (Financial Services Group) unit, to try and repair their loan book.  I understand that AIB currently has over 1,000 staff working in their FSG unit ... While big ships take time to turn, AIB's slow progress with fixing it's loan book says it all at this stage !


I agree with your thinking on the likes of Virgin Money and Kiwibank by the way, but suspect our Government are no where near commercial enough to manage to get organisations like these into Ireland ...


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## theresa1 (22 Jan 2017)

David McRedmond Group Chief Executive of An Post mentioned in the Oireachtas that we should have this in the next few months.

An article appeared in The Sunday Times and stated no overdraft facility but the account would have rewards. It may not be a FREE account.


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## Lightning (22 Jan 2017)

The article is here. (Article is behind a paywall but one can register and read 2 articles per week for free). 

The Sunday Times mentions transaction fees but rewards for certain activities. The offering sounds similar to the PTSB Everyday Banking product.


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## Clonback (22 Jan 2017)

Great to see An Post entering the current account market.The majority of bank customers are fed up of the poor service from the banks.i.e.long queues,no staff and a total indifference to customers.
The word on the ground indicates David McRedmond and the new chairman will put An Post on the right road.


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## MrEarl (24 Jan 2017)

Hello,

Just wondering, have An Post been recruiting to bring in experienced people to help launch this new service and ensure it's run properly ?   An Post do not have the skills and experience in house to manage things like SEPA in my view and if they are to do this right, they can't be just hoping it will be alright on the night.


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## theresa1 (24 Jan 2017)

Yes very little info on how it will operate. Are they getting help from an actual bank? No overdraft and I would imagine no cheque book but I could be wrong. Surely a mobile app will be offered. Will card be contactless? Will statements be e-statement only?


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## MrEarl (24 Jan 2017)

Good questions... hopefully someone inside An Post has both asked and found sensible answers for them


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## shweeney (24 Jan 2017)

Clonback said:


> long queues,no staff and a total indifference to customers.



can't tell if you're being sarcastic here - you're describing my local post office to a tee. At least if I go to AIB the staff are in uniform, the PO staff look like they just got out of bed and walked into work through a hedge.


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## Clonback (24 Jan 2017)

No I am not sarcastic.I am giving my experience of my local P.O.
As the old saying goes "doctors differ and patients die"


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## MrEarl (24 Jan 2017)

shweeney said:


> can't tell if you're being sarcastic here - you're describing my local post office to a tee. At least if I go to AIB the staff are in uniform, the PO staff look like they just got out of bed and walked into work through a hedge.



Sadly, that is not far off the description one might use for my local post office also ... and I live in the "big smoke", not somewhere near "ballygobackwards" in case anyone is wondering.

AFAIK, many of the post offices are actually franchises so not run directly by An Post. That may explain why the opening times, dress code, level of services etc. all differ so much.  If I am correct, then An Post really need to deal with this sort of stuff, as part of an overall effort to get back on track....


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## PaddyBloggit (24 Jan 2017)

What about privacy?

If I hold a current account in my local PO how does An Post ensure that my daily expenses, salary payments etc. don't become a topic of discussion in the back room of the PO as they sip tea around the Stanley?

There's a lot to be said for bank personnel indifference!


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## Lightning (5 Mar 2017)

An Post current accounts will launch in Q1 2017. Will be a basic offering but it will not be free banking. Source: Sunday Business Post.


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## Lightning (5 Mar 2017)

The Sunday Times are also reporting on this here. "A key element of McKinsey’s recommendations, involving the launch of a full-service current account that will reward customers based on how much they spend, is being pilot-tested by An Post and will be unveiled in the coming weeks".


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## delfio (5 Mar 2017)

PaddyBloggit said:


> What about privacy?
> 
> If I hold a current account in my local PO how does An Post ensure that my daily expenses, salary payments etc. don't become a topic of discussion in the back room of the PO as they sip tea around the Stanley?
> 
> There's a lot to be said for bank personnel indifference!



Well said Paddy,  not a hope would I give my local post mistress privy to my financial state. Maybe I paranoid but...


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## amtc (5 Mar 2017)

There's only a handful of company offices, mosthe are contractor operatored. An Post already tried Postbank and have a tie up with BOI


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## MrEarl (6 Mar 2017)

Hello,

Thinking out loud here, but does the local post office actually have any reason to need to see your balance or individual transactions ?

Why can they not just be the place where you go to lodge / withdraw, submit a request to set up or cancel a standing order, request a statement or interest cert etc ?

The individual post offices won't have any ability to give credit from what I can see, so why would they actually need to be able to see your individual transactions such as salary coming in, or balance on your account ?

Actually, going half a step further with that, the local post office is the last place that should have authority to sanction credit - if ever there is to be credit approved, it should be done centrally by trained and experienced decision makers.

Simply locating a printer on the opposite side of the counter from the postmaster (postmistress ) would be sufficient to ensure that they don't get to view your statement, if you are getting one printed.

All that said, I can't see this type of facility appealing to the masses, unless it also comes with very impressive internet based banking, quality apps for Android and Iphone etc.


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## Lightning (7 May 2017)

The Sunday Times have (again) said that the An Post current accounts are a few weeks away.


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## ardmacha (8 May 2017)

What they need is an impressive Internet facility that let's you set up standing orders etc without going near the Post Office. But when some ID document mumbo jumbo is needed, or if you do need to lodge a cheque or cash then you have multiple physical facilities to do so.


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## MrEarl (9 May 2017)

CiaranT said:


> The Sunday Times have (again) said that the An Post current accounts are a few weeks away.



Better to get things right, before they launch in fairness...

I expect that the market will already be a bit apprehensive about An Post launching this on a "go it alone" basis, so hopefully when they do roll the new service out it will be fit for purpose.

I agree with *ardmacha* about the need for an impressive internet (and mobile device) service as part of this effort, but fear that An Post may not see that as being quite so important - given they are trying to find things for the people in the local post offices to do etc.


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## Lightning (15 Jun 2017)

New thread on this here, now that the product has launched.


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