Can post offices plug the gap left by bank branch and cash machine closures?
Our new research aims to find the best solution for customers
Since 2017, post offices have offered everyday banking services to most current account holders and small businesses — but we know people aren’t using these services regularly.
As the consumer advocate for the post sector, we want to find out how well these services are being delivered and what other banking services post offices could offer to support local communities. That’s why we’re carrying out new research.
How well are post offices delivering everyday banking services?
With around 11,500 post office branches and over 90% of people living within a mile of one, it’s easy to understand why the government sees post offices as key to maintaining free access to everyday banking. But these services need to work for customers.
At Citizens Advice, we have concerns about the quality and suitability of everyday banking services at post offices. Our research in 2017 found that around 1 in 5 shoppers couldn’t access a service they should have been able to. Awareness and use of banking services at post offices is also low.
To find out if post offices are delivering better services now, local Citizens Advice services in Wales have been testing banking services at post offices. We’re also asking shoppers throughout Britain to test everyday banking services.
Could post offices help fill the gap left by bank closures?
A recent survey found that 4 in 10 people with a day-to-day account use a bank branch at least once a month. People use banks for everyday banking as well as other services such as transferring money, paying bills and to seek financial advice. But since 2015, bank branch numbers have reduced by a third, leaving many people without easy access to their nearest branch.
People in rural areas and low income households are particularly affected by bank branch closures. Poor internet connectivity in some rural areas means that people are less likely to use alternatives, such as mobile banking, to help manage their finances. Low income households are also more likely to use cash to help with their budgeting. So places where people can withdraw cash freely, such as bank branches and free-to-use cash machines — which are also declining in numbers — are essential.
This has led to calls for post offices to offer extra banking services. For example, the Treasury Select Committee called for ‘banking hubs’ to be set up at post offices when the last bank branch closes down in a local community. The hubs would offer extra services, such as financial advice, which aren’t currently available at post offices.
Our new research will try to answer these questions
We want to find out if post offices could offer any extra banking services to help people access financial services, such as banking hubs. By asking our local Citizens Advice and the general public, we’ll find out what banking services people value. We’ll then talk to post office operators and other stakeholders to find out if post offices are best placed to deliver these services.
With so many bank branches closing, there’s a real opportunity for post offices to support the growing banking needs of local communities. But, these services need to work for customers. Our research will find out how banking at post offices can be improved and what extra services they could offer.
