The United States Postal Service (USPS) has been around for many years and done a fabulous job delivering mail. As email has spread throughout the country and phones are more ubiquitous than ever, the USPS has had less revenue coming from typical sources. This has forced them to seek other means of generating revenue in order to keep afloat.
The latest idea includes taking on many of the lending services that banks hold dear. They have decided to enter “non-bank financial servicesâ€, which stays out of the way of banks in name, but in practice is a little bit different.
Bank Competition and USPS
The Office of the Inspector General has stated that the USPS is not going to become or compete with banks, but instead offer complimentary offerings of most financial institutions. What this means exactly is unknown, but discussion of digital currency is high on the list.
The vast majority of people who are competing in this industry know that the digital currencies are the way to go. Bitcoin and other new digital currencies are making their moves across the world and becoming incredibly popular. Because they are so independent from other currencies and they are allows to operate on the free market, it makes sense that people would really be drawn to these.
The USPS is looking for a way of seizing upon this popularity and the future before the banks can offer the services. However, there are many legalities that come into play when discussing some of the new moves on their part.
Payday Lending from USPS
There are few nice things that people say about payday lending, but the USPS is looking to get in the industry due to the favorable returns. Most people have no idea how profitable the payday loan industry really is, which is why financial institutions have started to get into the industry. They are offering more micro loans that require less red tape and collateral.
The USPS has seen the writing on the wall and is stepping up the level of time that they spend focused on such matters as well. It makes sense that they would be seeking any product that could save them time and make them a lot of money.
Even though the digital currency issue is not a big deal with banks yet, the payday lending is going to be a huge problem for a variety of reasons. If they get vilified in the same way that the other lenders do, it will definitely be a disaster for the US government that is sponsoring some of the horror stories associated with payday loans.
Whether the fight between the USPS and the banks will continue indefinitely is unknown as well, but it is apparent that banks do not appreciate what industries they are moving in to.
