The US Postal Service (USPS) is considering joining with banks to provide financial services for 68m underserved Americans.
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In a white paper, ‘Providing Non-Bank Financial Services for the Underserved’, the office of the inspector general of the USPS considers the prospect of offering mobile banking, prepaid cards and other financial services in partnership with US banks.
In the introduction to the paper the USPS wrote: "Banks and other financial institutions play a critical role in American society.
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By GlobalData"Accounts at federally insured depository institutions provide safety and security, protect households from theft, help families save money, and can open the door to affordable credit.
"Yet, more than a quarter of American households are left outside or on the fringes of the traditional financial system. Some have no bank account whatsoever."
According to the USPS 68m adults are underserved and spend an average of $2,412 every year on expensive alternative services like payday loans and cheque-cashing exchanges.
In a survey by the postal service the single most common reason the under-banked gave (32.7% of respondents) for not using a traditional banking service was that they didn’t have enough money to warrant opening an account.
The second most chosen response was not far behind with 29% of people surveyed saying they don’t want, need, like, nor trust banks.
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