5/17/2023 0 Comments Post office inoted states![]() “Roughly 6% of the population is unbanked,” meaning they manage their money outside of traditional banks and credit unions, explains James Angel, a professor of finance at Georgetown University’s McDonough School of Business. Those branches could fill the gap for banking services that can’t be conducted online, like cash handling for small businesses, Von Tol says. Nearly every ZIP code in the United States is served by a post office, which adds up to more than 30,000 branches nationwide. “They’re paying more to access credit,” by paying fees to check cashers or other bank alternatives, explains Jesse Van Tol, CEO of the National Community Reinvestment Coalition. Whatever the reason, being un- or underbanked can be expensive. They may live in rural areas or neighborhoods where banks have closed branches, leaving them in what’s known as a banking desert. But many people simply don’t have easy access to bank branches. There are numerous reasons why someone may be unbanked or underbanked, from a lack of trust in traditional banking to an irregular income schedule. One in four households in America conducts at least some of their financial business outside of the traditional banking system, according to data from the Federal Deposit Insurance Corporation (FDIC). The biggest argument in favor of adding banking services to postal service branches is to make banking more convenient and accessible. Postal Banking Could Serve the Underbanked Here’s what you need to know about postal banking. In fact, it was included in an amendment to an appropriations bill that passed in the House of Representatives in July. Yet as the debate on how to keep the Postal Service funded through the election and beyond continues, you may begin to hear more about postal banking. On top of that, it could add a little cash to the USPS coffers.īut offering banking services via the postal service isn’t a simple recipe for success, which is why it’s been pushed to legislators’ back burners for years. The primary benefit, according to supporters, would be increased access to financial services for the unbanked or underbanked. ![]() ![]() As the United States Postal Service’s dire funding situation took center stage amid the coronavirus pandemic and ongoing economic relief negotiations, one potential revenue generator peeked out from the wings: postal banking.įar from a new or novel concept, a postal banking program would allow people to complete typical banking functions like deposits, withdrawals and bill payments at their local post office branch. ![]()
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