January 23, 2015
Postal Workers, Alliance and Allies Partner to Institute Postal-Service Banking
On Monday, the American Postal Workers Union announced that it is partnering with the Alliance and other financial-reform organizations for a national campaign to create low-cost financial services through the United States Post Service (USPS). This partnership, named the Coalition for Postal Banking, aims to use over 31,000 USPS retail branches throughout the United States to provide low cost banking services to people who do not have access to traditional banks. Today, 28% of U.S. households, representing 93 million people, do not have access to affordable financial products such as the ability to cash a check, transfer money or pay a bill at a reasonable fee. These “unbanked” Americans are often subject to predatory check cashing companies, payday lenders, and loan sharks, which usually incur massive profits for their services. USPS is not a latecomer to banking services. From 1911 to 1967, it offered savings deposit accounts, and it currently sells more money orders than any other institution.
“The campaign is a coordinated effort to cut costs for working Americans and alleviate ‘bank deserts’ in many communities,” said Barbara J. Easterling, President of the Alliance.