A state-owned post Office may benefit the UK, according to a recent report from the Cass Business School in London.
The City University of London school’s 46-page report specifically looked at how a state-owned post office would impact the country, in an effort that would diversify the UK’s portfolio and increase its revenues, according to a press release. Economic and financial growth would be spurred by improving financial assistance to small and medium enterprises, growing inclusion in the financial sector for those not using banking services, and shifting the economy away from solely urban centers like London.
Other countries in Europe already follow a similar system, including Italy and France. Currently, the Bank of Ireland manages post office banking services. The report suggests ending the partnership by acquiring the Bank of Ireland, UK portfolio and holding onto its customers. The post office would be set up as a subsidiary, per the report. The researchers’ analysis found that “the Post Office’s current partnership with the Bank of Ireland has not delivered the expected and potential results,” according to the report.
“Our analysis suggests the revenues the partnership between the Post Office and the Bank of Ireland has brought in remain significantly lower than post banks around the world, and it has not delivered a full range of banking products for Post Office customers,” lead author Barbara Casu Lukac said in the press release.
Lukac is the Director of the Centre for Banking Research, and she teaches banking and finance at Cass. She joined the faculty in 2007 and has worked at universities throughout Europe, including the Catholic University of Milan in Italy and the University of Wales.
Dr. Angela Gallo and Dr. Francesc Rodriguez Tous co-authored the paper. Gallo is a research fellow at the business school, and Tous is a lecturer.
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