Post Office to offer financial services

Customers will soon be able to pop into their local post office to take out an insurance policy, a credit card or even a mortgage under plans unveiled today.

Through a joint venture with the Bank of Ireland, the Post Office will offer a wide range of financial services including personal loans, credit cards, personal insurance, savings accounts and mortgages from early next year.

Although customers can already access high street bank accounts or take out National Savings and Investments products through their local branch, the initiative allows the Post Office to offer a range of services under its own brand.

The new offering builds on an existing joint venture with the Bank of Ireland, which provides foreign currency under the First Rate Travel Services brand.

Customers will be able to access the new services through their local branch, over the telephone or online, the two groups said.

The Post Office, which traces its history back to the 16th century, has over 16,900 branches across the country - more than all the UK banks and building societies put together.

"Our new range of products will have great appeal and I expect Post Office Ltd to become a major provider of personal finance services," said David Mills, chief executive of Post Office Ltd - a subsidiary of the Royal Mail group.

"This is great news for our customers. Our employees and sub-postmasters throughout the UK will be able to offer a much enhanced range of services."

The Post Office said the plans were the result of an extensive market research exercise involving 20,000 customers over 18 months.

The Bank of Ireland hailed the move as a major opportunity for it to extend its reach into the key UK market, which already accounts for around 30% of its business.