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The lobby group representing Canada\u2019s big banks says there just is \u201cno public policy objective or existing gap in the marketplace\u201d calling for Canada Post to become a retail bank.<\/p>\n
\n\tThe Canadian Bankers Association argues that those who advocate postal banking are simply \u201cdisregarding the facts\u201d of Canada\u2019s efficient and competitive financial sector.<\/div>\n
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\n\tCanada Post Corporation (French: Soci\u00e9t\u00e9 canadienne des postes), trading as Canada Post (French: Postes Canada), is a Crown corporation which functions as the primary postal operator in Canada.<\/div>\n
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\n\tCanada Post is operated as an independent company.<\/div>\n
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\n\tIn a brief to the federal task force reviewing Canada Post, the bankers\u2019 association says that Canadians are already enjoying access to a competitive spectrum of financial products and services.<\/div>\n
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\n\tBanks boast a high rate of customer satisfaction<\/strong><\/div>\n
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\n\tA recent Competitive Policy Review Panel noted: \u201cCanadians can justifiably be proud of our financial services sector, which is internationally held in high regard.\u201d<\/div>\n
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\n\t\tCustomer satisfaction with retail banks in Canada was high before the outbreak of covid-19, but satisfaction is falling flat in the critical area of digital banking experiences, according to the J.D. Power 2020 Canada Retail Banking Satisfaction Study published in May.<\/div>\n
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\n\t\tThe survey found that overall satisfaction among banking customers in Canada has risen by five points to 790 (on a 1,000-point scale) from 2019, mainly driven by increases in score by the Big 5 banks.<\/div>\n
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\n\t\tOverall satisfaction among midsize bank customers decreases two points to 796 from a year ago.<\/div>\n
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\n\t\tThe case for postal banking<\/strong><\/div>\n
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\n\t\tThe Canadian Union of Postal Workers (CUPW) and the Canadian Postmasters and Assistants Association (CPAA) are working together to help promote the idea of postal banking.<\/div>\n
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\n\t\t\u201cWe had a postal bank in Canada up until 1968. It\u2019s time to bring it back,\u201d says the group.<\/div>\n
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\n\t\tHere are its main arguments:<\/div>\n
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\n\t\tThousands of rural towns and villages, and some Indigenous communities, don\u2019t have a bank \u2013 but many of them have a post office that could provide financial services.<\/div>\n
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\n\t\tAs well, nearly two million Canadians desperately need an alternative to payday lenders. Wouldn\u2019t it be great if there were a better option than the big banks? A postal bank could be that alternative.<\/div>\n
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\n\t\tMany postal systems around the world operate banks that provide inclusive access to banking, fund economic development and help increase revenue to preserve both our public postal service and jobs.<\/div>\n
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\n\t\t\u201cTwo-thirds of Canadians support\u201d postal banking<\/strong><\/div>\n
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\n\t\t\u201cWe see postal banking as a much-needed financial solution for millions of people in under-serviced Indigenous communities, towns and villages in rural and urban areas. And we are not alone,\u201d say the campaigners.<\/div>\n
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\n\t\tThey claim that two-thirds of Canadians support the idea, \u201cas do hundreds of municipalities, ACORN, the Universal Postal Union, and even former presidents of Canada Post. Most federal parties have also indicated some level of interest.\u201d<\/div>\n
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\n\t\tACORN (Association of Community Organisations for Reform Now) Canada is an independent national organisation of low- and moderate-income families. It has over 130,000 members organised into twenty-four neighbourhood chapters in nine cities across Canada.<\/div>\n
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\n\t\t\u201cTo top it off, Canada Post conducted a secret four-year study on postal banking that indicated that adding this service \u2018would be a win-win strategy\u2019 for the corporation.\u201d<\/div>\n
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\n\t\tIn January, the Federal government finally made public its long-awaited vision for a renewed Canada Post, calling for expanded service options and alternative revenue streams.<\/div>\n
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\n\t\tMike Palecek, National President, Canadian Union of Postal Workers (CUPW), said:<\/div>\n
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\n\t\t\u201cPostal banking fulfils the government\u2019s vision for Canada Post. It is profitable, sustainable, and provides accessible banking services to all Canadians. It is a win-win opportunity for the Government to better serve Canadians.\u201d<\/div>\n
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\n\t\tThe battle over postal banking continues to heat up, with each side striving to align members of Parliament with its cause.<\/div>\n
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\n\t\tArticle by Mohamed Dabo for Retail Banker International<\/a><\/div>\n<\/div>\n
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