[Washington Examiner] The Unity Task Force created by presumptive Democratic presidential nominee Joe Biden has called for a "postal banking" system for people who don’t have access to regular banks, while experts and government reports pan the idea."I do not think it is the solution to improving the reach of financial services in our country," said Carrie Hunt, executive vice president of government affairs and general counsel for the National Association of Federally Insured Credit Unions.
Hunt is not alone in her assessment.
The Government Accountability Office, which audits the federal government, released a report in March that tapped the opinions of postal service officials and other stakeholders about the U.S. Postal Service adding banking to its amenities list and deemed that the post office "may not have the expertise nor the required capital" to pull it off.
The report also stated that the idea "may generate minimal revenue" as the post office seeks new income streams as it reported revenue losses of over $8 billion last fiscal year. This isn’t the first time that the agency has reported such losses.
The Postal Times reported on Friday that "over the past 14 years, the United States Postal Service (USPS) has lost $78.5 billion and now has $143 billion in unfunded liabilities. No one should be inspired enough by that performance to allow the agency to handle anyone’s money."
The Treasury Department also opposes granting the post office the power to provide financial services because of its limited capital reserves and lack of experience in the banking sector.
Its report from December 2018 stated that "given the USPS’s narrow expertise and capital limitations, USPS should not pursue expanding into new sectors, such as postal banking."