A refreshing idea

We've all heard about how the Post Office is failing; 2013 was the seventh year in a row that the Post Office reported a net loss, this time $5 billion. The Inspector General of the Post Office has an idea how the agency can be resuscitated. It proposes to do so by partnering with banks so that it would offer many banking services to those who currently having difficulty finding and paying for needed banking services. The IG thinks this would generate $8.9 billion in new annual profits.

The focus of the PO's efforts would be the poor, who lack banking options and are often gouged by predatory financial services. The average underserved household has an annual income of $25,500 and spends $2,412 each year just on interest and fees for alternative financial services. These are the services that would be provided.

Some of the reasoning of the IG:

• Postal financial services may appeal to many customers who feel abandoned by major financial institutions. Postal organizations have an unmatched ability to reach consumers from diverse backgrounds
• Many international posts are already garnering significant new revenue and keeping citizens connected by offering financial services. Financial services have been the best new opportunity for posts to earn additional revenue. 
• On average, people who filed for bankruptcy in 2012 were just $26 per month short of meeting their expenses. 

A few other interesting points. 
• The Post Office provided banking service from 1911 - 1967 and still sells money orders.
• Post Offices, furthermore, are well-positioned to help people because of their presence in lower-income areas. The report says that “93 percent of the bank branch closings since late 2008 have been in ZIP Codes with below national median household income levels.” More than half of post offices are in ZIP Codes with zero or one bank branch. 
• Congressional approval would not be required. Obama could do it tomorrow.