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
They would probably have to offer a good deal to encorage people to switch
An Post plans to take on banks with new current accounts
- Thread starter cork
- Start date
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.
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.
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.
Any post office interested in business opens all day at this stage.
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).
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.
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.
thedaddyman
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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.
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.
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.
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.
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.
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?
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.
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'.
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'.
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.
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.
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).
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.
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.
Gerry Canning
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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?)
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?)
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.
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.
