Mr. President: Let Us Put OUR Money Where YOUR Mouth Is: Post Office Banks
Writing for the New Republic, Dayen has sifted through the IG’s new white paper that applauds the possibilities of a new postal banking system for us, and you can read the 33-page report here (pdf).
How? By allowing the USPS to engage again in banking by offering savings accounts, debit cards, and even small loans. The Inspector General teamed up with experts on international postal banking, and liked what he learned. Many nations around the world offer postal baking, of course.
To begin with, the group discovered that over 68 million USians have either no access, or only limited access to traditional financial services (2011 pie chart here). Many of them are poor, and dependent on usurious pay day loan and check-cashing outlets, and were gouged to the tune of $89 billion in fees and interest in 2012. At a 90% discount for the same services, it could save the average banking-underserved family $2000 a year, and reap the USPS $8.9 billion in profit a year, helping out its balance sheet.
snippage
The postal service, with public trust earned over generations and 35,000 outlets in the best real estate in practically every city in America (in fact, the report notes, 59 percent of all post offices are in “bank deserts” with only one bank branch or less), is well-positioned to deliver simple financial services. In fact, it did for over 50 years. Begun in 1911, the Postal Savings System allowed Americans to deposit cash with certain branch post offices, at 2 percent interest. By 1947, the system held deposits for over four million customers. Though dismantled in 1967 (after banks offered higher interest rates and eroded its market share), the post office continues to issue domestic and international money orders, including $22.4 billion worth in 2011, as well as prepaid debit cards through a deal with American Express.’
http://my.firedoglake.com/wendydavis/2014/02/04/mr-president-let-us-put-our-money-where-your-mouth-is-post-office-banks/
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Much much more at the link (horrible thread title, I know) about committee hearings regarding the USPS this week.
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