Australia Post has announced that the Commonwealth Bank of Australia (CBA) has signed an agreement to support critical investment in Australia Post’s Bank@Post service.
According to Australia Post, this is a landmark agreement in the history of the organisation and will help ensure all Australians can continue to use Post Offices across the nation to access important financial services.
The five-year commitment includes CBA contributing a new annual Community Representation Fee of $22 million and revised transaction fees. This partnership enables Australia Post to invest in the Post Office network in order to help provide safe, reliable banking services, ensure our Licensed Post Office partners will be paid appropriately and support the future prosperity of many communities.
“I am extremely appreciative that the nation’s largest bank has taken a lead position in supporting Australia Post. This investment will not only help save a critical service in Post Offices serving the communities of Australia, it saves jobs and supports the financial viability of our local Post Office partners,” Australia Post’s Group Chief Executive Officer and Managing Director Christine Holgate said.
There are 1550 communities across Australia, predominantly in rural and regional Australia, who today have no bank branch. The citizens and small businesses of these communities depend on Australia Post to provide access to financial services through the Bank@Post service in their local Post Office.
Today Australia Post loses money operating the service and does not have the funds to subsidise this service further or make the critical investment needed. Many of Australia Post’s local Post Offices are operated by Licensed Post Office partners, who as small businesses, do not have the capital investment needed.
Without support, Australia Post risked either suspending the service or closing some community Post Offices.