A public consultation has begun to decide whether the Post Office should operate as a full bank.

The Department for Business, Innovation and Skills (BIS) has initiated a public consultation on whether the Post Office should offer financial products and services.

The suggested services – which could be introduced at any of the 11,500 Post Office branches across the country – include current accounts, children’s savings accounts, budget planning, and business bank accounts.

The government department is also keen to secure the Post Office’s position within the mortgage market, building on its award-winning mortgages and improving its rates and ranges.

Having been in operation for more than 300 years, the Post Office is seen by many as a trusted and well-respected organisation. Lord Peter Mandelson, UK Business Secretary, pointed out the strength of the personal touch when retaining customers: “At a time when some banks and financial services companies are seeking to reduce face-to-face contact with customers, the Post Office stands out.

“It offers a trusted brand, and has more branches than the high street banks combined. It is ideally placed to bring banking services back to the heart of people’s communities. Our consultation outlines exciting proposals, but I want people to have their say. This is an opportunity for local communities to tell us what they want and need from their Post Office.”

However, some organisations feel that the consultation does not go far enough. Paul Reuter, Unite National Officer, said: “The government has missed a real opportunity to provide a people’s bank based at the Post Office. The government should extend this consultation to examine how this could be done. The Post Office network is key to removing social exclusion from society and making available banking services to all. A Post Office Bank can make a valuable contribution to society.”

Further information about the public consultation can be found in every Post Office branch nationwide, or online here.