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USPS financial services may be the answer to its financial problems
The United States Postal Service has seen better days, but one particularly dedicated U.S. Senator could see the agency restored to its former prominence with a new proposal to replace surprisingly common predatory lenders.
In January, the USPS Office of the Inspector General released a report suggesting that the agency could, in theory, provide non-bank financial services for those currently going without. According to OIG's research, 1 in 4 U.S. households are currently in an area devoid of mainstream financial services. The report defines these select homes as "underserved households," and says the average spends more than $2,400 annual on interest and fees for alternative financial services, like short-term lenders.
U.S. lawmaker takes action
According to Think Progress, the loans provided by predatory lenders regularly come with interests rates above 100 percent and force customers to pay back a substantial amount more than they originally borrowed. After reviewing the OIG's report, Sen. Elizabeth Warren (D-Mass.) introduced a proposal to allow the USPS to provide simple banking services for those who otherwise don't have immediate access.
Surprisingly, the USPS report found that 6 out of 10 post offices currently reside in underserved areas, which means the business generated if Sen. Warren's proposal passes would secure significant and, sustainable revenue streams for the agency. The online magazine Clutch recently reported that the plan could be worth as much as $9 billion to the USPS, effectively ensuring the agency's longevity and continued service.
The USPS has been making considerable efforts to restructure their operations to better work in the 21st century, optimizing delivery processes and searching for additional revenue sources. For direct mail marketers, these changes can mean big things in the months ahead. In order to keep up, companies can use mailing software to help them echo the postal service's efforts and streamline their own mailing operations.
