Banks’ territory is further threatened with Post Office current account launch

The Post Office is launching a new current account in Spring 2013, initially launching in some branches before a wider roll-out in 2014. Michael Ossei, personal finance expert at Uswitch.com, says: “This is great news that has been a long time coming. It will be particularly welcomed by those in rural areas as well as vulnerable groups such as the elderly that find it hard to get to a bank. Many have been recently hit by local branch closures, so this news should make life a lot easier.

“With low levels of consumer confidence in traditional high street banks, the current account market is all for the taking. Six out of ten people believe that new providers have learned from the mistakes of more traditional high street banks and one in three would like to bank with a company that offers other useful services aside from banking.

“High street banks should see this as a serious threat, especially with the new rules in September that make it easier for customers to switch current account. The Post Office will not only benefit from its far-reaching network of branches, but from the fact that it is a trusted brand. There’s everything to play for but value for money and customer service will be key.”