Postal OIG White Paper Examines Benefits of Providing Financial Services

National Postal Mailhandlers Union, “Postal OIG White Paper Examines Benefits of Providing Financial Services,” May 21, 2015

On May 21, 2015, the Office of Inspector General issued a white paper entitled Examining the Road Ahead for Postal Financial Services, in which the OIG examines how the Postal Service could benefit by enhancing the financial services currently offered to the public. Report Number RARC-WP-15-011 examines five potential methodologies the Postal Service could take to achieve the benefits of providing widely available and affordable financial services.  The White Paper notes the Postal Service could :1) expand the products it already offers under its existing legal authority  and obtain authority to offer a broader range of products; 2) expand financial services through one key partner that offers money transfers, prepaid cards, bill payments, and perhaps even loans and deposit accounts; 3) examine ways the Postal Service could partner with one or more specialized banks, credit unions, or other organizations to provide products like reloadable prepaid cards and small loans; 4) create a marketplace where multiple providers offer each product for sale to the public; and 5) establish its own full-fledged post bank. The report speculates that latter 4 recommendations could generate billions in revenue for the USPS. The report went on to conclude that, “Offering expanded financial services would help the Postal Service improve the lives of millions of Americans as it fulfills its universal service obligation.”

The NPMHU supports legislation that will expand Postal financial services.