Problems in the Post

Ian Rogers
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.

Revenue from over-the-counter bill payments fell 6.7 per cent. There was no mention of trends in relation to postbillpay.com.au, a rival to the banks' BPay service.

Post claimed an increase in its market share for "travel money", with volume growth in Western Union money transfer of 19 per cent, and "successful partnerships" with American Express for foreign currency and Travelex for the latter's cash passport payment card.

Post's network of 2500 shops handled 23 million banking transactions.

The annual report mentions identity services as one growth area, though much of this may come from customers other than banks.

Structural shifts in communications are finally catching up with Post's overall financial position, though it remains profitable.

Overall revenue for 2009/10 fell two per cent, to $4.9 billion, while pre-tax profit declined 73 per cent, to $103 million.

As for the periodic speculation that Post has banking plans of its own, CEO Ahmed Fahour told The Age, "We are not a bank … but we are a financial services player. We will be continuing to grow the financial services' products that we offer today in our agency capability."