Santader UK ties up with UK's Post Office to provide banking services
27 January 2015
Santander UK, owned wholly by Spain-based Santander Group, has entered into an agreement with UK's Post Office to allow its personal current account holders and business clients to bank at the PO's 11,000 branches.
Reuters quoted the bank as saying, "As part of an overall commitment to providing our customers access and ability to do their banking when, where and how they want, Santander has concluded an agreement with the Post Office."
This agreement came partly from a larger investment strategy of Santander UK.
Under the strategy, the firm has revamped 40 per cent of its branches and also invested in digital technology, the news agency reported.
Reuters reported that the Post Office and Bank of Ireland had already tied up to offer banking services. The Post Office also announced that it would launch the 'Post Office Money' brand which customers could access at its over 11,000 branches or via online.
The Post Office intended to bring all its financial services under one umbrella as it aimed to emerge as one of the largest financial services providers in the country by 2020.
This was likely to pose a challenge to a number of the UK's largest banks, which are embroiled in scandals ranging from mis-selling loan insurance to rigging of interest rates.
Meanwhile, cityam.com reported that the Post Office yesterday launched a new push to take on big banks even as it announced it wanted to be a ''leading financial services provider'' by 2020.
It would rebrand its range of financial products as Post Office Money, in a bid to unify its brand, much of which was provided by Bank of Ireland.
According to the Post Office, 2,500 outlets that also opened on Sundays, would hopefully give it a high street presence to contrast with the big banks that were closing sites.
It said Post Office Money would announce new as also competitively rated products over the coming months as it indicated it planned a price war with the banks.
The development comes as Satander emerged as the latest major lender to offer its services though Post Office branches.