Foreign Perspectives

Post offices in many countries around the world offer a range of banking services these days, but are they really up to it?

Typically a small post office will have one counter to do everything. That works well when “everything” is mainly posting letters and parcels which take a few minutes to process.

Add on banking services and you’re into a whole different league in terms of the time that it takes to process a transaction though. For one thing, opening an account takes ages and delays everything. OK, it’s not something that happens every day but it happens fairly frequently: I spent getting on for an hour in a queue in a post office today which ended up snaking right round the available space and out the door because two people were opening accounts.

The problem really stems from the practice of governments to consider post offices in country villages to be a “good thing” and therefore worthy of support. That in turn leads to them being considered a job creation scheme so, of course, you wouldn’t want to add too much automation into them as then you wouldn’t create so many jobs. What automation that there is often is counter-productive: posting my three letters took nearly five minutes because the stamps had to be scanned in and destinations entered into the computer.

So, no, I don’t know that it’s really true to say that many post offices could be considered banks.