IA «FACT» already wrote, that from February «Ukrposhta» will completely switch to automated processing of postal items, which will significantly speed up the delivery of parcels throughout Ukraine, reducing the time to one day. And soon «Ukrposhta» may get its own bank — this topic will be discussed again after a short break raised in the media after Prime Minister Denys Shmygal’s statement. He reported that the government decided to transfer the corporate rights of the First Investment Bank (PINbank), previously owned by Russian businessman Yevgeny Giner, from the State Property Fund to the Ministry of Community and Territorial Development, and later to the control of the state postal operator.
Chairman of the board of «Ukrposhta» Ihor Smilyanskyi reacted to the news with a statement: «Ukrposhta is becoming a bank!» Probably, PINbank will be renamed to «Ukrposhta Bank», which will operate with a limited license, focusing on basic financial services. That is, its service will be primarily aimed at rural communities, front-line areas, the elderly, people with disabilities, recipients of social assistance, military personnel, farmers, and e-commerce market participants.
This concept corresponds to the «financial inclusion bank» model, which allows providing basic financial services in sparsely populated regions. Last December, VR did not support draft law No. 12044 on the creation of financial inclusion banks, as only 221 deputies out of the required 226 voted for it. This shows that there is no agreement among legislators regarding this initiative.
In addition, the process of creating a new bank requires approval from the NBU. And the national regulator categorically against creation of a bank on the basis of «Ukrposhta», referring to the fact that this may threaten the financial stability of the country. The Central Bank also emphasizes the need to reduce the state’s share in the banking sector, which is about 55%, and the creation of a new state bank is contrary to this strategy.
An additional obstacle may be the need for consultations with the International Monetary Fund, which usually does not support the expansion of the public sector in the Ukrainian economy. So, although Ukrposhta declares its intention to get its own bank, it will have to overcome legislative barriers and gain the support of key financial regulators and international partners in order to launch it.
Is it realistic and expedient to start a postal bank in Ukraine? What do citizens and experts think about it? How do similar institutions function in other countries?
Why does «Ukrposhta» want its own bank and how experience with postal banks has been implemented in other countries
«Ukrposhta» strives to create own bank to ensure access to financial services for every third Ukrainian, in particular in frontline, de-occupied and remote areas. The launch of more than 25,000 service points is planned, where it will be possible to receive pension and social benefits, pay for utilities, and buy goods and medicines.
In Ukraine there is a problem with the availability of banking services for some citizens. Many banks are closing their branches in remote areas, making it difficult for people to get financial services. «Ukrposhta» has many branches throughout the country and plans to provide banking services through its service points.
Other countries have a similar experience of opening postal banks, and they have proven to be effective. Yes, La Banque Postale has 7,700 branches in France. It is a state-owned bank that focuses on the mass market and provides accounts, loans, insurance and investments. Provides banking services through post offices and the German Deutsche Postbank. Once part of Deutsche Post, it is now a division of the privately held Deutsche Bank.
These examples show, that the integration of postal and banking services can increase the availability of financial services, especially in regions with limited access to traditional banks.
If Ukrposhta is unable to obtain a special limited banking license, its plans to provide financial services may be in jeopardy. However, if Ukrposhta does not receive a license, it may consider partnering with already existing banks. Such collaborations could allow basic financial services to be provided through the national postal operator’s branch network. However, this solution may have limitations and may not ensure complete independence in the provision of financial services.
Currently, Ukrposhta is the only state enterprise that actively promotes the idea of creating its own bank to increase financial inclusion. Other state-owned companies have not yet announced similar initiatives, focusing on their core activities.
Public and expert opinion: do Ukrainians really need such a bank
«Ukrposhta Bank» is planning provide banking services in remote areas, but some private banks already operate there. This means that «Ukrposhta Bank» will have to offer attractive and competitive products and services. However, due to limited resources and experience in the banking sector, this can be a difficult task for a new financial institution.
Creation of «Ukrposhta Bank» caused lively discussions among economists, bankers and business representatives. Opinions are divided: some see this as an opportunity to increase the availability of financial services for the population, while others warn about potential risks.
Some economists believe that the expansion of financial services in remote regions is important, and «Ukrposhta Bank» can become a bridge between the financial system and the rural population, providing access to banking services. However, the success of «Ukrposhta Bank» will depend from whether the company will be able to provide a good level of service and security of financial transactions. It is also important that the postal operator overcomes the technical and organizational challenges associated with the integration of banking services into its operations.
Creation of a postal bank causes discussions regarding the stability of the institution’s business model. Orientation of such an institution to serve low-income people and work in remote regions may not be profitable. High costs and limited profit may force the bank to turn to the state budget for help, which will further burden the state treasury.
Some experts worry that the creation of a new state-owned bank will contradict the policy of privatization and reduction of the state’s presence in the financial sector. They warn that «Ukrposhta Bank» may be subject to external pressure and make decisions based on political motives, rather than economic expediency, which undermines trust in the bank.
PrivatBank, Oschadbank and monobank have not yet commented on the creation of Ukrposhta Bank, but experts believe that the appearance of a new bank may force them to change their strategies in the field of serving the rural population and providing banking services.
There are also questions about the fairness of competition between the state-owned Ukrposhta Bank and private banks. Some businessmen fear that the state-owned bank will receive benefits, access to government resources and support, which will create an unequal playing field in the market.
The question of the need to create a postal bank is discussed and ordinary Ukrainians. The National Bank of Ukraine reports that state banks, in particular, PrivatBank and Oschadbank, have a high level of trust among our compatriots, as evidenced by PrivatBank’s leadership in the number of deposit accounts.
However, the general level of confidence in the banking system remains ambiguous According to the survey by Active Group, only 4.2% of Ukrainians are completely confident in banks’ preservation of bank secrecy.
Implementation of digital services, integration with Diya and competitiveness in the market
The creation of Ukrposhta Bank raises a number of questions regarding its digital capabilities and competitiveness in the modern financial market.
«Ukrposhta» already has experience in digital services. Its mobile application allows track shipments, process parcels, and calculate shipping costs. A new mobile application with extended functionality is planned to be launched.
Integration with the «Action» application can to simplify customer verification processes and signing documents online. Many Ukrainian banks already use the capabilities of «Diya» to open accounts and other services.
Modern banks, in particular, monobank and PrivatBank, are actively developing digital services, offering customers convenient mobile applications with a wide range of functions. In order to successfully compete, Ukrposhta Bank will need to invest in technological solutions and ensure a high level of user experience.
Tetyana Viktorova
