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Australia Post could compete with banks

A plan to expand the financial services role of Australia Post was revealed yesterday in a bid to bring greater competition to banking.

David Murray, who is the former head of the CBA and now runs Future Fund, has been in talks with the Gillard government to transform Australia Post offices into financial shopfronts.

The plan includes allowing Australia Post to offer some banking and provide other financial services such as superannuation. Murray also suggested Australia Post could set up an ATM network. He added that there was room for post offices to offer quasi-banking services including loan documentation.

Murray suggested Australia Post would not use its own funds to provide loans and deposits, but would act as an outlet for other institutions.

Australia Post's 3800 outlets currently offer limited deposit and withdrawal services on behalf of credit unions and some banks.

Last year, former NAB boss Ahmed Fahour was appointed as the head of Australia Post, which sparked speculation Australian Post would move into the financial services sector.

By BN | 22 Oct 2010