The Canadian Union of Postal Workers (CUPW) has called on the federal government to vote in favour of an upcoming motion to study the implementation of a postal banking system in Canada, citing the results of a CUPW-commissioned research report released Friday.
According to the report, It’s Time for a Postal Bank for Everyone, there were 1,774 fewer bank branches in Canada last year than there were in 1990, with the trend toward bank closures continuing. The number of credit union branches has also been also declining over time, the report says. While the trend toward fewer branches was most pronounced in small towns and rural areas, it was also evident in some neighbourhoods in larger towns and cities.
“The big banks are abandoning our communities,” says Mike Palecek, the national president for CUPW in a news release. “Canadians deserve accessible financial services and the post office is more than ready and capable of providing them.”
Providing banking services via more than 6,200 Canada Post offices spread throughout the country would provide underserved communities — including Indigenous communities — greater access to affordable financial services and be an alternative to payday loan providers, the report argues. The revenue generated by Canada Post in delivering financial services could be used to help support the Crown corporation’s primary mail-delivery services.
This fall, the government will hear final arguments and vote on an NDP motion, M-166, to study the implementation of postal banking in Canada. CUPW says it has sent a copy of its report on postal banking to all Members of Parliament.
“I don’t see how anyone who favours innovation and service expansion could vote against this motion,” says Palecek in the news release. “A postal bank would give more people access to financial services and bring new revenue to Canada Post.”