Australia Post gets Bank@Post investment

The Commonwealth Bank of Australia has reached agreement with Australia Post to support investment in the Bank@Post service. The new service is designed to support the country’s national post office network by giving Australians access to certain financial services.

Under the agreement the bank is to contribute a Community Representation Fee of AUD $22 million and revised transaction fees. The deal allows Australia Post to invest in its post office network and help provide safe, reliable banking services, ensure their Licensed Post Office partners will be paid appropriately and support the future prosperity of many communities.

Australia Post’s Group Chief Executive Officer and Managing Director Christine Holgate said “I am extremely appreciative that the nation’s largest bank has taken a lead position in supporting Australia Post.  This investment will not only help save a critical service in Post Offices serving the communities of Australia, it saves jobs and supports the financial viability of our local Post Office partners,”

“The agreement ensures customers will be able to access withdrawal, deposit, balance enquiries and passbook services at more than 3500 Post Offices across the country. Approximately 30,000 CBA customers use Bank@Post every day.”

At present it is estimated that more than 1550 communities across rural and regional Australia lack a bank branch so rely on the Bank@Post service through their post offices. In having access to financial services so these communities can thrive even many miles away from urban centres.

“Matt Comyn and the CBA team have shown strong leadership on this issue and a real commitment to ensuring the prosperity of communities that rely on our Post Offices. I would also like to thank both the Treasurer, The Hon. Josh Frydenberg MP for his support and acknowledgment that all Australians should have ongoing access to banking services, and Mark Korda from Korda Mentha who has supported our discussions,” Ms Holgate said.

“Importantly, this agreement will allow Australia Post to increase Bank@Post base transaction payments to our hardworking Post Office licensees by approximately 50 per cent from January 1st 2019, as well as investing in infrastructure including technology and security upgrades, and local marketing. Additionally, we will increase the annual minimum payment to licensees by 25 per cent.

“We continue to have positive and productive discussions with the other three major banks to seek their support for this service. I am very grateful for all the work their teams are doing as we work through these discussions together. Australia Post has proposed that they each commit to a Community Representation Fee of $22 million and revised transaction fees. If they also agree to a five-year commitment, this could deliver up to $500 million of additional investment over this period, the largest ever for Australia Post Offices, securing their future and helping protect the prosperity of all communities across Australia.”