![]() The cost of living crisis in the UK has caused citizens to turn to cash to aid in budgeting and handling day-to-day expenses.But successful postal banking systems exist in much of Europe, with the system in the UK expanding rapidly. US consumers preferred to bank in the private sector. Postal banking around the world: Postal banking existed in the US from 1911 to 1967, but the program was ended due to a lack of use. But only 66 bank branches serve these communities, meaning 90% of them don’t have access to a local bank. Additionally, Canada is home to more than 700 indigenous communities.As a result of these exclusionary behaviors, nine million Canadians are considered credit unserved or underserved, per TransUnion.And one-third of those lenders admit that customers with poor credit will receive no service. Only 16% of lenders have a system in place to provide loans to customers with poor credit. One major barrier to getting the needed financial products is low or bad credit.15%, or five million Canadians, are considered underbanked. ![]() ![]() According to Prosper Canada, 3% of the Canadian population is unbanked, meaning they don’t have a checking or savings account.But talk of bringing back postal banking has been stirring. The Canadian Post already offers products and services such as international remittances, money orders, and prepaid gift cards that together amount to five million transactions worth $2 billion a year.įinancial exclusion in Canada: Postal banking existed in Canada until 1968, when the program folded due to intense lobbying from the banking sector. The program aims to bring credit services to rural, remote, and indigenous communities, and TD Bank and the Post Office hopes to expand the program to offer other financial products in the near future. Throughout the pilot, citizens took loans for reasons ranging from covering emergencies to consolidating loans.Applications are submitted online or by phone, and a TD Bank representative is available to help with the application process.Citizens do not need to have a bank account or prior credit to apply for a loan. TD Bank is responsible for setting the interest rates.Borrowers can access loans in amounts ranging between $1,000 and $30,000.
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