The USPS a contender in financial disruption
by: Jim Ghiglieri
Among the contenders in the race to disrupt the financial service industry is the U.S. Postal Service (USPS). Recently, the USPS issued a report talking through the different ways it may go about achieving this new opportunity, and one of those ways was to collaborate with community financial institutions (FIs). Of course, the organization has plenty of experience to potentially stand on its own two feet. It already is the largest single provider of paper money orders.
It appears the audience they are most interested in courting is the unbanked and underserved, a segment that has become increasingly valuable to traditional FIs, as well. It certainly is a sizable market and one likely to offer unmatched loyalty and word-of-mouth marketing when trusting relationships are indeed solidified.
“With well priced and carefully conceived products, these customers can be profitable,” Bank Director’s Joan Susie tells the Financial Brand. “Large banks, nonbank financial services companies and a few community bank pioneers are quickly realizing there is an even better reason than CRA credits to bank new immigrants and other underserved populations.”continue reading »