Like many of Monzo’s innovative new features, a legacy bank is coping one of Monzo’s most notorious. Lack of Post Office withdrawals.
Also other banks may follow as the post office has started charging the banks for withdrawals.
I can see this happening too. Now one has taken the initial blow they can hide behind them.
It seems to only mention withdrawals. Does this also effect deposits?
Interesting article - it sounds like a big driver for it is the change in pricing structure:
The new agreement involves almost every UK bank and includes an “improved fee structure” under which postmasters will receive about three times more remuneration for providing these services than under the previous deal.
I can’t find any info on what these banking service fees are, but seems like it’s not clearly a workable long term solution?
I think this quote sums it up:
The consumer body Which? said: “Barclays’ shocking decision exposes the fragility of the UK’s cash system, and blows apart industry claims that the Post Office network is a solution to the cash crisis.”
Clearly something needs to change in that system somewhere
The Post Office itself only has a few years of life left. A large amount will be shutdown next couple of years.
Same goes with Royal Mail.
Royal Mail agreement with the Post Office ends in January 2022, is encouraging customers to use its services directly rather than through the post office network.
Unless I’m mistaken though, this won’t actually change anything for customers.
When I banked with Nationwide - who don’t use the Post Office for banking services at all - I could still withdraw cash at the PO counter using my debit card. It showed up on my statement as an ATM withdrawal. Same with my Revolut card.
So, surely Barclays customers can now just withdraw cash at the PO counter using that method, rather than the (operationally identical) route of “Post Office Banking Services” which is being withdrawn by Barclays?
Hilarious if Barclays team up with Paypoint.
In theory the ATM’s in a post office should still operate with any bank per the LINK network.
I imagine the over the counter route will no longer work, as they are not part of the LINK network.
I’ve never fully understood the link between the post office / Royal Mail…
You’d think with the constant rise in online purchasing, not to mention the Royal Mail being a world class distribution network, that if they just focused on their core business they’d be ok.
I still think they’re capable of delivering everything outside of Amazon and doing ok, or a potential Amazon regulator break up would do wonders for them.
The key thing is the government will no longer continue to subside the post office in 2021. The NFSP have reported that basically a quarter have plans to shut next year, they just aren’t making money to survive.
The royal mail are equally screwed with the deal ending with the post office, and they don’t really have a plan to turn it around other than the recent cut of dividends and trying to improve efficiency by cutting costs, just a downward spiral.
The next 1-3 years will be interesting.
You are mistaken. Post Office counter cash withdrawls aren’t ATM withdrawels, they’re completely separate. Nationwide does participate in the Post Office scheme - I’ve used them in the past.
They’ve announced a 5 year plan in May to become a parcels led business again. Which is a good thing, providing they can keep the traffic through their network.
You can see it here:
They’ll either be a growth stock or capitulate, they’re in limbo at the moment and I can’t see it staying that way, conversely I also don’t see the Government letting them fail.
Yeah I was following it as that unfolded
Just realised almost the same date I commented on Thomas Cook.