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CBA continues 106-year partnership with Australia Post

  • Posted on Tuesday 9th, October 2018.

The Commonwealth Bank of Australia (CBA) has renewed its long-standing Bank@Post partnership with postal service company, Australia Post, for another five years.

This is a landmark agreement, according to Australia Post, and will help ensure all Australians can continue to use post offices across the nation to access important financial services.

The five-year commitment includes CBA contributing a new annual Community Representation Fee of $22 million and revised transaction fees. This partnership reportedly enables Australia Post to invest in the post office network in order to help provide safe, reliable banking services, ensure its licensed post office partners will be paid appropriately and support the future prosperity of many communities.

”I am extremely appreciative that the nation's largest bank has taken a lead position in supporting Australia Post,” said Australia Post Group Chief Executive Officer and Managing Director, Christine Holgate.

“This investment will not only help save a critical service in post offices serving the communities of Australia, it saves jobs and supports the financial viability of our local Post Office partners.

"The agreement ensures customers will be able to access withdrawal, deposit, balance enquiries and passbook services at more than 3500 Post Offices across the country. Approximately 30,000 CBA customers use Bank@Post every day,” she said.

There are 1,550 communities across Australia, predominantly in rural and regional Australia, who have no bank branch, according to the CBA. The citizens and small businesses of these communities depend on Australia Post to provide access to financial services through the Bank@Post service in their local post office. 

Without this service these communities face significant economic and social challenges. Recent research by Deloitte Access Economics highlighted the important role Post Offices play in local communities. In fact, with every role Australia Post employs in rural and regional Australia, two more jobs are created in the economy.

“Matt Comyn and the CBA team have shown strong leadership on this issue and a real commitment to ensuring the prosperity of communities that rely on our Post Offices,” said Holgate.

“I would also like to thank both the Treasurer, The Hon. Josh Frydenberg MP for his support and acknowledgment that all Australians should have ongoing access to banking services, and Mark Korda from Korda Mentha who has supported our discussions.

"Importantly, this agreement will allow Australia Post to increase Bank@Post base transaction payments to our hardworking post office licensees by approximately 50 per cent from 1 January 2019, as well as investing in infrastructure including technology and security upgrades, and local marketing. Additionally, we will increase the annual minimum payment to licensees by 25 per cent.

"We continue to have positive and productive discussions with the other three major banks to seek their support for this service. I am very grateful for all the work their teams are doing as we work through these discussions together. Australia Post has proposed that they each commit to a Community Representation Fee of $22 million and revised transaction fees. If they also agree to a five-year commitment, this could deliver up to $500 million of additional investment over this period, the largest ever for Australia Post Offices, securing their future and helping protect the prosperity of all communities across Australia,” she said.

CBA CEO, Matt Comyn, said its partnership with Australia Post has been and continues to be important.

“We’ve been listening to our customers and we know they want the convenience and choice of how, when and where they bank with us whether it’s on our app, by calling our local call centres, in a CBA branch or at Australia Post,” he said. “As two of the country’s largest organisations, we’re proud to partner with Australia Post to provide jobs for so many Australians and to continue to ensure customers and communities, especially those in rural and regional areas, have access to local banking services.”

The CBA-Australia Post relationship spans 106 years according to Comyn and goes back to the start of the CBA in 1912 when it began offering its banking services through post offices in Victoria.

“I’m delighted that we have been able to extend our relationship for another five years,” he said. “This relationship symbolises our aim to be a better and simpler bank for our customers. We look forward to continuing the work we do side by side with Australia Post in supporting the communities that we both serve.”

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