According to Sky News, the Post Office is hoping to become one of the country's leading financial services providers and will announce on Monday its plan to amalgamate financial products under Post Office Money.
The Post Office provides insurance, mortgages and savings accounts. It is hoped the Post Office will become a leading challenger on the high street competing with the five biggest banks.
The Post Office is still a major presence on the high street with 11,550 branches and roughly 3m customers. Speaking to Sky News, Nick Kennett, director of financial services at Post Office Money, said:
Consumers want a choice about how they manage their money; at Post Office Money our customers have access to an unrivalled network as well as online and phone, combined with multi-award winning products.
We have been listening to our customers and know that people are facing some big financial decisions, and through the new Post Office Money we want to become their first choice when thinking about a mortgage, credit card or a safe haven for their savings."
Kennet wants to double the size of Post Office money by 2020. Earlier this month, insurgent Metro Bank cut its losses to £8.9m in the final quarter of 2014 as it edged towards profitability.
The bank, set up by Vernon Hill in 2010, has been championed as an alternative to Britain’s big four lenders – Lloyds, RBS, Barclays and HSBC – which account for more than 75 per cent of Britain’s 65m personal accounts and provide nine out of every 10 business loans.