President Obama has the power to issue an executive order that can simultaneously cut down on predatory businesses, save millions of low-income families money, and help shore up the Post Office’s finances, thus securing hundreds of thousands of jobs and pensions.
Postal banking would let the Post Office offer basic banking services to customers, like low-interest savings accounts, debit cards and even some simple types of loans.
An estimated 68 million people live in “bank deserts,” areas without access to financial services. The big banks don’t want to serve these people because they’re mostly poor, leaving them to be gouged by check-cashing shops and payday lenders. Postal banking could save low-income families who rely on these services thousands of dollars a year and the Post Offices already maintains offices that serve people in bank deserts.
Many countries across the world have postal banking systems and the United States had one until 1967. Now it’s time to bring it back.
Michael Langenmayr, Daily Kos