WASHINGTON – A new report that a Wall Street “mega-bank” is in discussions with the U.S. Postal Service to offer banking services at post offices is getting strong back from a credit union trade group.
According to the Capitol Forum, JP Morgan Chase has proposed to the U.S. Postal Service that it be allowed to offer financial services in post offices. A spokesperson for JP Morgan Chase told CNBC, "We had very preliminary conversations with the U.S. Postal Service several months ago about what it might look like to lease a small number of spaces to place ATMs to better serve some historically underserved communities. There is no agreement in place and no imminent plans to move forward.”
Both CUNA and NAFCU have consistently objected to various proposals that would have the USPS offering banking services in various forms over the years. The postal service has more than 31,000 locations nationwide.
Such plans for postal banking have gotten new life after a joint task force put together by Democratic presidential candidate Joe Biden and former candidate Bernie Sanders put together a task force that included among its other recommendations that bank accounts and payment services be made accessible to middle- and low-income Americans through the Postal Service.
In response to the report of JP Morgan Chase's discussions with the USPS, NAFCU CEO Dan Berger issued a statement saying, “Allowing Wall Street mega banks free-reign to solicit customers from community post offices would amount to nothing more than a power grab aimed at bolstering profits. From their beginning, credit unions have stepped up to the plate to deliver financial lifelines to vulnerable communities. Policymakers should advance policies that allow not-for-profit, member-owned credit unions to serve more underserved populations."