Removing Barriers Blog

Treasury Report Rejects Postal Banking
Posted December 04, 2018 by CUNA Advocacy

The U.S. Department of the Treasury (Treasury) released a report on the future of the United States Postal System (USPS).  The report offered several recommendations that would alter the USPS’s business model to increase the sustainability of the system without increasing costs to taxpayers.

While the report generally encourages the USPS to explore new revenue streams, it also directly states the postal service should not pursue an expansion into banking services.  Specifically, the report concludes that “Given the USPS’s narrow expertise and capital limitations, expanding into sectors where the USPS does not have a comparative advantage or where balance sheet risk might arise, such as postal banking, should not be pursued.”

CUNA has been strongly opposed any expansion of the postal service’s into financial services.  In July 2018, CUNA joined with other trades to urge the adoption of an amendment to the Financial Services and General Government (FSGG) appropriations bill that would have prohibited the USPS from providing banking services.  In a letter, the trades argued that Congress “should encourage the Postal Service to focus on its core business of physical mail delivery, and not be distracted by expanding the mission to businesses outside of the Postal Service’s area of expertise.”  Today’s report echoed this recommendation.