The Post Office needs to do something to win back popular support following the series of recent strikes. With the banking sector suffering even more deeply from public resentment plans to turn the post office into a bank could be just the ticket.
The government is reviewing the proposal to turn the post office network into a 'People's Bank'. There is a strong likelihood the plans will move forward toward fruition by 2011.
Currently more than 75% of mortgages are written by just six banks. This monopolization is the result of consolidation following the financial crises.
Business Secretary Peter Mandelson has been backing the call to extend the range of products on offer since early this year.
Supporters of the Post Bank claim that around three million people are still denied access to basic finance in the UK, including the most disadvantaged, pensioners and those in very remote rural areas. Also small businesses are looking for alternative sources of finance to help them through the recession in the face of increasing costs at the high street banks.
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