Bank of Ireland renegotiating UK Post Office deal

The Bank of Ireland is renegotiating its deal with the UK Post Office. This could end up costing the Post Office more in fees.

The bank offers a range of services through the Post Office such as credit cards, mortgages and 2,500 free cash machines. The Bank of Ireland is working with bankers at Perella Weinberg to renegotiate its deal.

The UK Post Office already has financial problems with its federation of sub-postmasters warning in May that 2,500 branches are at risk of closure.

Perhaps softening the blow, theBank of Ireland’s Francesca McDonagh has said that its relationship with the Post Office is successful and the current deal is set to run for three more years.

Major high street banks across the UK are closing branches at a rapid rate and many customers’ only contact with the institutions are through the Post Office network. Such renegotiations could cost those customers dearly should it impact the profitability of Post Offices further.

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