Post urged to offer more financial services
Former Commonwealth Bank chief executive David Murray is encouraging Australia Post to widen its financial services offering through its network of 2500 shops. This would all be agency business, however, and not use Post's balance sheet to hold deposits or make loans.Murray called for a wider range of services to be sold through Post shops, mainly in order to generate revenue to offset declining income from traditional products. He also suggested that Post to consider developing its own ATM network. The Sydney Morning Herald reported on Murray's views.''There's all sorts of thing in the funds management superannuation business, documents that need to be signed and lodged - it can be more than just a banking agency,'' Murray told the SMH.Ahmed Fahour, chief executive of Post (and a former CEO of the Australian business of NAB) told the newspaper, ''We will be continuing to grow the financial services products that we offer today.''In the past Fahour has cited superannuation as one financial services niche where Post may offer more services.Australia Post's financial services business recorded a decline in revenue, and presumably volume, in the year to June 2010, according to the corporation's annual report published last Friday.Overall revenue for 2009/10 fell two per cent, to $4.9 billion, while pre-tax profit declined 73 per cent, to $103 million.