“Think tank” lacks forward thinking on Canada Post Banking

Published On October 15, 2013 | By Joseph (Ken) | Business, Economy
Canada post
Canada needs postal banking, think tank says

“Facing high banking fees and difficult access to bank branches, Canada needs postal banking, according to a new report from the think tank Canadian Centre for Policy Alternatives.”

“The report notes that while there has been a “slight” 5% increase in the number of brick-and-mortar bank branches in recent years, driven largely by growth in certain areas like Ontario, Alberta and British Columbia, the number of branches is 26% below 1990 levels.”

Hmmm… what is different today from 1990…? I know, THE INTERNET. Although I agree with the statement that Canadians are facing high banking fees, the lack of brick-and-mortar bank branches reflects technological advances like the internet. I deposit through banking machines, I pay bills on-line, I transfer funds to people via email transfers etc etc. If banks could make money by having more branches, they would build them.  Thanks to technological advances like the internet, we don’t need more bank branches and the decrease in them reflects that reality. 

“The Canadian Centre for Policy Alternatives report cited a Canadian Union of Postal Workers survey showing that 63% of Canadians are in favour of Canada Post expanding into areas like financial services.”

Of course, Postal Workers are in favour of expanding into areas like financial services because they are facing huge cut backs.

Cash-strapped Canada Post weighs future of mail delivery

“Urban Canadians could be saying goodbye to door-to-door mail delivery. Cutting that service is among the options being seriously considered by Canada Post as it grapples with plummeting volumes of letter mail and financial losses of $104 million in the last quarter.”

Have you ever heard of the think tank “Canadian Centre for Policy Alternatives”?

As per Wikipedia, “It is funded primarily through individual donations, but also receives research grants, and has institutional support from trade unions.”

Need I say more?

 

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About The Author

Joseph (Ken)
(Ken) is a Registered Public Accountant with over 25 years of public practice experience in the accounting profession. Ken specializes in accounting information systems, taxation and financial reporting.

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