Nearly a million "financially excluded" individuals in the UK could have access to mainstream
current accounts and better-value
personal loans if a simple-to-use
bank account were launched by the Post Office network, it's claimed. As a result, consumer champions are calling on the government to introduce a tailored account as part of plans to introduce banking services through the Post Office.
New Consumer Focus research indicates that seven out of ten people with no
bank account in the UK - or those with a Post Office Card Account - agree that a new, straightforward account would suit them better than their current arrangements. Just under half revealed they don't trust high-street banks to look after their money, with many reporting problems meeting banks' identification rules when trying to open a
current account.
Andy Burrows, postal expert at Consumer Focus, pointed out that financially excluded people "often struggle to access mainstream financial products" like
current accounts,
savings accounts and low-cost
personal loans, making them more likely to use sub-prime credit and pay interest many times that of a standard
personal loan.
The Post Office network, he concluded, is well placed to offer a range of "neighbourhood banking products" with wide appeal.
Financial News
