Banking agreement to continue for three more years

Banking agreement to continue for three more years

We’re delighted to announce a new three-year Banking Framework agreement starting from 1 January 2020. 

It means millions of customers will continue to have easy access to cash and vital banking services over the counter at their local Post Office, wherever they live in the UK – great news for branches and for customers. 

However we are disappointed that Barclays has told us it plans to end over-the-counter cash withdrawals in Post Office branches for its customers from 8 January 2020 (but Barclays cash deposits, cheque envelope deposits and balance enquiries will continue).

Barclays customers can of course still withdraw cash at the Post Office counter until 8 January. Barclays is informing its customers about this and there will also be some customer materials available for Post Office branches. 

Services for all the other banks and financial institutions will remain the same as now under the new agreement.

Excellent and vital service

Martin Kearsley, Director of Banking Services, said: “We’re delighted to have signed this agreement with the UK banks, so their customers can continue to have convenient and secure access to everyday banking services. It secures national access to cash, free of charge, for most personal banking customers and small businesses for another three years.

“We have been working with the banks to ensure we can continue to offer a commercially viable service to their customers and, importantly, to ensure postmasters receive a fair remuneration for providing these services. This could mean further good news for postmasters as part of the ongoing remuneration review, and we will report back on the outcome of that later this year. Our branches provide an excellent and vital service to customers carrying out their everyday banking – personal and business customers alike.

“Apart from the disappointing decision from Barclays, overall this is really good news for branches and for customers of the partner banks.”

Earlier this year we announced an increase in postmaster remuneration for cash deposits – the fastest-growing banking transaction in Post Office branches, and we will still be offering this service for Barclays customers as well as the other banks under the new agreement. The increased rates began from August.

The original Banking Framework agreement was signed in 2017. Last year Post Office branches handled more than 130 million transactions on behalf of UK banks, and this is set to grow as we add more banks, building societies and credit unions to our service. 

If you have any questions or feedback about this announcement, please speak to your area manager or email postmastersquestions@postoffice.co.uk.

 

The full list of Banking Framework partners:

Allied Irish Banks, Bank of Ireland, Bank of Scotland, Barclays, CAF Bank, Cahoot, Clydesdale Bank, The Co-operative Bank, Danske Bank, First Direct, First Trust Bank, Halifax, Handelsbanken, HSBC UK, Lloyds Bank, Metro Bank, Nationwide Building Society, NatWest, Omnio, Payment Cloud Technologies, Royal Bank of Scotland, Santander, smile, Starling Bank, TSB, Ulster Bank, Virgin Money and Yorkshire Bank.

We currently also have separate contracts to provide services for APS Financial Limited (Cashplus) and Think Money. Both are due to join the Banking Framework agreement soon, taking the total to 30.