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The Association of British Credit Unions (ABCUL) has welcomed yesterday's
response to the consultation on the future of financial services in the Post
Office, which sees the Post Office network as a natural distribution partner for
credit union services.
Responding to the news on behalf of the credit union sector, Mark Lyonette,
Chief Executive of ABCUL, commentedd: "Credit unions are ideally placed to offer
fair banking and affordable credit to people on low and modest incomes and a
link up with the Post Office will bring these services within the grasp of many
more people."
The consultation response, published by the Department for Business, Innovation
and Skills proposes using a new community levy to be funded by retail banks to
support a link between credit unions and Post Offices, allowing people to access
credit union loans, current accounts and savings accounts throughout the Post
Office's 11,500 branches.
Lyonette continued: "Opening up the Post Office network to credit union services
will help to deliver a step change in the scale of credit unions in Britain,
boosting access to their services for millions more people and raising awareness
of credit unions as an ethical and sustainable banking alternative.
"Credit unions across the country are keen to offer their services to many more
people and the Post Office link up will help them achieve this.
"Today's response is key to kick starting this exciting initiative which will
contribute towards reducing financial exclusion and bringing fair and affordable
banking services to many more communities - a real mutual and local alternative.
We look forward to working with the next Government to bring these exciting
plans to fruition."
In addition to savings accounts and affordable loans, credit unions offer a wide
range of financial services including Child Trust Funds, Cash ISAs and Current
Accounts which, thanks to today's announcement, could soon be available through
the Post Office network.
According to ABCUL, the Post Office link up would allow Post Office customers to
join a credit union and existing credit union members to get easier access to
their accounts, especially when away from home.
Staff at a Post Office would be able to carry out transactions in real time,
check account details and balances, pay out savings and give instant,
pre-approved loans that are affordable and convenient.
Andy Burrows, postal expert at Consumer Focus added: "The emphasis on providing
access to credit unions through the post office network, funded by levy on
banks, would give people another trusted way to manage their money and get
access to more affordable credit."
Source:
Getting Paid
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