Due to Senator Elizabeth Warren’s proposal of the Postal Banking Act of 2017 and Senators Bernie Sanders and Kirsten Gillibrand’s postal banking bill, banking has also been discussed in the United States.
Though it is still a relatively new idea, postal banking is already causing a stir in numerous nations, including the United Kingdom, Switzerland, and Japan.
According to a recent poll, two-thirds of Americans are amenable to the concept of postals banking, therefore the general public in America appears to be in favour of it as well.
Why does postals banking appear to be such a desirable alternative then?
Why do postal banks exist?
The concept of postals banking has a lot of potential, especially in light of the growing number of bank offices that are closing.
Checking accounts are simply modified in postal banking. Like your neighborhood bank, your local post office is providing you with some basic financial services.
In many parts of the world, postal banking is typical, and it was once available in the US. Although postal banking has been utilized for decades in other nations, it has never been used in the United States.
why is it necessary?
It is no secret that some areas of our nation lack adequate access to commercial banking services.
Either they are banking deserts—neighborhoods where fewer than half of the population has a bank account—where branches are few and financial services are scarce.
Low-income people are frequently more susceptible to fraud and identity theft if they do not have access to these fundamental financial instruments.
How will it appear?
An application will be given to a customer who asks for a bank account at their neighborhood post office.
Customers would have access to many of the same services as other banks—debit cards, savings accounts, and affordable loans—if they were authorized for an account (and everything that entails).
Additionally, your customers can deposit checks or cash money into their accounts using the mail centers and ATMs at their local post office.
How can I participate?
Find out if your nation currently has a postal banking system or if one is being considered.
Then consider what products or services you could offer to those who lack access to or cannot afford typical banking services.
Do you know anyone doing that right now? If so, ask them how they go about doing things and how they got started.
Who backs it?
Postal banking is not a brand-new concept. Even as recently as 2011, New York Senator Kirsten Gillibrand sponsored a bill that would have allowed post offices to provide savings accounts, but it didn’t get any traction despite the support of President Jimmy Carter.
Nevertheless, polls indicate that American support for postal banking has increased over time. 43 percent of Americans approve it, while only 39 percent reject it, according to a 2014 Rasmussen study. Support for it is considerably higher among millennials, who are likely to be underserved by banks.
What time will it be accessible?
There is currently no firm date for when Postal Banking might be accessible to Americans, yet since 2013 there have been rumors’ that Rep.
A postal banking bill will be reintroduced in Congress by Cedric Richmond (D-La.). However, it’s future is unknown given that Republicans currently control majorities in both houses of Congress and the executive branch under President Donald Trump.
Read More: The Top 9 Important Questions You Should Ask When Choosing a Bank
Who is against it?
Sen. Elizabeth Warren (D-Mass.) proposed starting postal banking in 2013, but Big Banks and several Republicans fiercely opposed it.
Even if she finally did not succeed in getting postal banking approved, it is still a possibility in the future.
Who is in favour of it?
Financial firms that would be in direct rivalry with postal banks are against it.
Therefore, it seems sense that the majority of postal banking’s backers are unions and consumer protection groups that see it as a method for low-income customers to obtain services they currently can’t get from conventional financial institutions.
Because they view commercial banks as needless middlemen between you and your money—and also as a government monopoly on currency—some libertarians also support postal banking.