The UK Post Office Gets Pitiful Payments For Serving Bank Customers! - Image 1

The UK Post Office Gets Pitiful Payments For Serving Bank Customers!

Posted on: 17/06/2024

The sad thing is that the total Post Office banking revenues quoted in this article are very LOW.

There are 11,500 post offices. So average banking revenues per post office branch are just over £20,000 per annum.

Revenues per banking transaction must be pitiful.

And if total revenues from banking services are truly higher than the average post office earns from parcels and letters, then the economic position of the average UK post office must be extremely fragile.

Looked at another way, published figures suggest that bank branches on average cost around a £1 million per annum to operate. Seems high but, if true, means that what the Post Office received in banking revenues last year equates to the cost of running about 260 bank branches.

Two UK bank branches on average have closed every day since 2015, so on average 730 each year. Or well over 6000 in total.

The banks must have good deal negotiators..

The UK Post Office is NOT getting a good deal for providing banking services.

They need a far better and longer term deal from 2025.

The latest figures from Italy suggest each post office ( there are about 12,500 in Italy) on average earns the equivalent of £80,000 per annum from financial services - and that in a country where there are still over 20,000 bank branches, compared to the around 6000 this article tells us remain in the UK.

Maybe the UK Post Office needs to recruit an Italian negotiator?

Just one more fact.

The UK’s population is 13% higher than that of Italy.

So the Italian public are certainly getting much more convenient access to financial services from their banks and Poste Italiane.

Never mind, though. We are British. Mustn’t grumble...


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