Canada Post’s cash transfer service was a flop with operations of the program in 2020 amounted to $779 million in losses with 3,013 post offices operating in the red, according to Blacklock’sReporter..The Crown corporation only earned “marginal” profits on a cash transfer service introduced two years ago, according to a management report to MPs. Now a proposal to expand financial services is being proposed to raise the revenue of the program..A submission to the Commons government operations committee said “MoneyGram was marginally profitable in 2021,” but did not elaborate further..The 2021 details will be released shortly in the Crown corporation’s tax documents..Canada Post contracted US-based MoneyGram in 2019 to operate a cash transfer service at 5,200 offices across Canada, the agreement was then renewed in 2020 for five more years..“We are thrilled,” John Reis, general manager of Canada Post retail services, said in a statement in 2020..The Crown corporation will shortly release details of its 2021 pre-tax loss. Losses the previous year totaled $779 million with half of 6,026 post offices operating in the red..“Our large customer base continues to demand this critical service.”.As the 2021 financial documents are awaited, management’s last Annual Report said it must expand services, including the financial products..“We must innovate to find solutions that will strengthen our retail model while maintaining an effective community presence,” said the report..“Canada Post is piloting community hub concepts for a wide range of services in rural Canada including improved financial services and potentially new government and community services,” wrote staff..“Community hub” pilot projects are operating in two municipalities at High Prairie, Alta and Membertou, NS..The operations offer cash transfers, ATMs and micro loans of as little as $1,000 at 6% interest, according to management..Canada Post banking services were disbanded in 1968, but a 2016 Department of Public Works survey found there may be a market for it again..The survey found 39% of small business owners nationwide responded they would use Canada Post banking services if offered. The department paid $142,137 for the study Views On Canada Post Services by Ekos Research Associates Inc..Resuming.full-service banking at post offices was rejected in the Commons in 2018 when a New Democrat motion proposed the matter..“Do we really need further hearings and study on this matter?” Liberal MP Steven MacKinnon, government house leader, said in debate on the motion..“We believe the short answer is ‘no.’”.Access To Information memos obtained in 2017 showed the Canadian Bankers Association lobbied against any revival of postal banks..A cabinet-appointed Canada Post Review Task Force conducted a Discussion Paper back in 2016 and concluded banking was not feasible..Ewa Sudyk is a reporter with the Western Standard.,esudyk@westernstandard.news,.https://twitter.com/home
Canada Post’s cash transfer service was a flop with operations of the program in 2020 amounted to $779 million in losses with 3,013 post offices operating in the red, according to Blacklock’sReporter..The Crown corporation only earned “marginal” profits on a cash transfer service introduced two years ago, according to a management report to MPs. Now a proposal to expand financial services is being proposed to raise the revenue of the program..A submission to the Commons government operations committee said “MoneyGram was marginally profitable in 2021,” but did not elaborate further..The 2021 details will be released shortly in the Crown corporation’s tax documents..Canada Post contracted US-based MoneyGram in 2019 to operate a cash transfer service at 5,200 offices across Canada, the agreement was then renewed in 2020 for five more years..“We are thrilled,” John Reis, general manager of Canada Post retail services, said in a statement in 2020..The Crown corporation will shortly release details of its 2021 pre-tax loss. Losses the previous year totaled $779 million with half of 6,026 post offices operating in the red..“Our large customer base continues to demand this critical service.”.As the 2021 financial documents are awaited, management’s last Annual Report said it must expand services, including the financial products..“We must innovate to find solutions that will strengthen our retail model while maintaining an effective community presence,” said the report..“Canada Post is piloting community hub concepts for a wide range of services in rural Canada including improved financial services and potentially new government and community services,” wrote staff..“Community hub” pilot projects are operating in two municipalities at High Prairie, Alta and Membertou, NS..The operations offer cash transfers, ATMs and micro loans of as little as $1,000 at 6% interest, according to management..Canada Post banking services were disbanded in 1968, but a 2016 Department of Public Works survey found there may be a market for it again..The survey found 39% of small business owners nationwide responded they would use Canada Post banking services if offered. The department paid $142,137 for the study Views On Canada Post Services by Ekos Research Associates Inc..Resuming.full-service banking at post offices was rejected in the Commons in 2018 when a New Democrat motion proposed the matter..“Do we really need further hearings and study on this matter?” Liberal MP Steven MacKinnon, government house leader, said in debate on the motion..“We believe the short answer is ‘no.’”.Access To Information memos obtained in 2017 showed the Canadian Bankers Association lobbied against any revival of postal banks..A cabinet-appointed Canada Post Review Task Force conducted a Discussion Paper back in 2016 and concluded banking was not feasible..Ewa Sudyk is a reporter with the Western Standard.,esudyk@westernstandard.news,.https://twitter.com/home
