PO link up to extend services

By JO THORNHILL
Updated:

 

THE Post Office has joined up with the Link network, which runs the most of the nations bank and building society cash machines, to extend banking services at the 18,000 post offices across the UK.

At present, the Post Office has an agreement with six banks, including two internet banks, which means their customers can use post office branches to make basic transactions.

The banks already involved include Alliance & Leicester, Co-operative Bank, Lloyds TSB, Barclays, First Direct (for customers in Scotland) and internet banks Smile and Cahoot.

The Post Office now hopes to extend this to include all high street banks in the coming year.

'This represents a key step forwards offering customers greater access to their cash across our network of branches free of charge,' says Basil Larkins, executive director strategic alliances at the Post Office.

'It will support the provision of the universal bankng services to enable customers to continue collecting their benefits in cash at the Post Office after the switch to automated credit transfer in April 2003,' he adds.

The Link-Post Office connection and the extension of banking services is being advertised in a TV campaign featuring Chris Tarrant.

'The ad shows how easy and convenient it is for customers to access their bank accounts at Post Office branches,' says Deborah Maxwell, brand and marketing director at the Post Office. ' With most people living within a mile of one of our branches, customers can deal with all their essential everyday business all in one place - without having to make an extra trip into town.'

The Post Office has also signed an agreement with the Link network to manage universal banking services. These will be aimed at adults who have been excluded from the mainstream banking system mainly because their credit profile is not considered profitable enough.

Eleven major banks and building societies will offer basic banking accounts and will contribute a total of £180m over five years to the cost of running the banking service.

However, the project is not due to start running until April 2003. As well as giving access to basic bank accounts run by banks, the Post Office will run its own card-based account, aimed at those who only want to access their state benefits. This service will be funded by the government.

Anyone currently receiving cash benefits at Post Offices will need a universal account before 2005. Payment books are being phased out in favour of transfers into bank accounts.

The announcement of the extended banking services comes in the same week that The Countryside Agency (CA) has reported village post offices are being closed at a rate of three a week.

The CA's report found that in the past three years 546 of England's 6,556 village post offices have been shut. As a result nearly 400,000 people in rural areas live more than one and a half miles from their nearest branch, posing serious problems for the elderly.

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