POST OFFICE: EXTENSION OF BANK OF IRELAND CONTRACT

[TrueBlueTerrier]

Letter to Branches




No: 606
Ref: 100
Date: 9th August 2012

TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague,

POST OFFICE: EXTENSION OF BANK OF IRELAND CONTRACT

I would like to advise Branches that the Post Office has announced that it has extended its contract with Bank of Ireland to provide financial services products for an additional three years. The original contract commenced in 2004, and this revision means the contract is now extended until 2023.

The current Joint Venture (JV) between the Post Office and Bank of Ireland provides a broad range of Post Office branded products, including savings accounts, mortgages, motor, home and life insurance and credit cards, and has almost three million customers with a savings book of more than £17bn. As part of these contract negotiations, Bank of Ireland has purchased the Post Office’s shareholding in the JV company for £3m and, therefore, the JV has effectively been disbanded. Both parties will now work directly together commercially as a partnership to deliver current and future products and services. Going forward, the Post Office will be responsible for product sales and marketing and Bank of Ireland for product development and delivery.

I hope this new commercial arrangement will lead to the Post Office and Bank of Ireland working together to generate a much better offering of financial products, such as current accounts and children’s accounts for the British public. This will help support steps towards a financially viable Post Office network and hence greater job security for our members.

The Post Office’s press release, a regulatory statement from Bank of Ireland, and also the associated CWU press release are attached to this LTB for your information.

If you have any enquiries in relation to this LTB, please email csinclair@cwu.org.

Yours sincerely


Andy Furey
Assistant Secretary

[The BFO]

Thanks for the information. I wonder what this means for the future of the Financial Specialist grade, and how these products will be sold?

[billyhayes]

Thanks for the information. I wonder what this means for the future of the Financial Specialist grade, and how these products will be sold?

According to those in the know, FS are going to go on the counter and if/when someone wants a financial product they wont be caught looking at group-on or booking their holidays on the laptop. Everyones a winner.