While the idea of offering banking services at post offices continues to excite progressives in Congress, it probably will not appeal very much to its intended customer base if implemented. It is hard to imagine unbanked millennials flocking to their local post office to check their balances and cash checks in today’s digital world.
A new U.S. Postal Service bank would enter an environment characterized by rapidly evolving financial technology innovation and a rapid transition away from in-person banking. Not renowned for its agility and encumbered by thousands of underutilized brick and mortar facilities, it is hard to see how the U.S Postal Service could effectively compete in this environment, let alone what value it might add.