View more on these topics

Mutual concern at people’s bank plan

Building societies and brokers warn that the Prime Minister’s plans to bolster the Post Office’s banking arm must not give it an unfair advantage over the rest of the industry.

In his speech to the Labour conference in Brighton on Tuesday, Gordon Brown unveiled plans to develop the Post Office into a leading financial services player through its 11,500 branches. He said: “I want the Post Office to play a much bigger role, bringing banking services back to the heart of people’s communities.”

The Government has already committed £1.7bn of funding to the Post Office.

Brown also set out plans to develop a National Care Service, offering elderly people free personal care in their own homes.

But Building Societies Association director general Adrian Coles says the mutual sector is already the “people’s bank”.

He says: “Brown will need to make sure his proposals do not unfairly penalise building societies and undermine their valuable contribution.”

Association of Mortgage Intermediaries director Robert Sinclair says the plans are a good idea so long as the PO sticks to simple products. He adds: “If it strays into investments, I would expect the same level of qualification, training and professional standards as the rest of the financial sector.”

Recommended

Arc keeps options open for investors

Arc Capital and Income has established the Arc protected FTSE growth plan, a FTSE 100 linked capital-protected bond that provides two options with different levels of capital protection and returns.

Is volatility dead? No, sell credit

There are several arguments that one could currently make for why credit markets look unattractive. These include signals that the US economy is in late cycle, the fact that corporate leverage has been increasing (with 2016 setting a record for the amount of global bond issuance), and that US high-yield default rates have risen considerably […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Post Office
    I really welcome this move. This will hopefully reverse the the trend of closing down post offices in rural communities. It was the norm for elderly people and others to get their pensions and benefits paid as well as putting their savings through their local post office. It could bring back what the local communities have been missing over the last 10-15 years when the goverment have found excuses to shut post offices down one after the other. How can this be bad? Or am I missing something here??

  2. people’s bank plan?
    wasn’t it this governments plan to cull and rationlize the expensive post offices in the first place? me thinks he is sweetening up for the election.

  3. Tony Trescothick 2nd October 2009 at 1:50 pm

    Gordon’s Peoples Bank
    Wasn’t this what Girobank was supposed to be? Where did that endup? Being sold off to, I think, Alliance & Leicester. How many more new tricks will Gordo be trying over the coming months to curry favour pre-election?

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com