SMS is killing standard mail advertising. First class mail volumes have plummeted. USPS is on the ropes. Senator Bernie Sanders has been trying to get the USPS to offer banking services to the American public. He sees it as a way for USPS to provide a service that people would value. He sees it as a revenue stream. His reasoning goes like this, every town and village already has a post office. Therefore by default, every bend in the road could have a bank. I would get this idea if it were 1970. Back in 1970, people needed a physical bank branch in order to conduct their banking needs.
Now thanks to the internet and mobile devices every person can conduct their banking needs at any time of the day. Banks are closing thousands of branches, not opening them. Now banks compete based on their ability to service their customers on the web as well as on their phones. My neighbor, a CFO for a $16 Billion Credit Union, says that more transactions are mobile-based than both web, call center and branch based combined. They have stopped building branches and are reducing their number as a whole.
The time has passed for this idea. USPS providing banking services would just become a boondoggle. You already line up and wait half an hour to buy stamps. Is it going to get any better when the clerk also has to do banking functions?
Just like SMS is killing traditional advertising. USPS is no longer needed by the American public. It no longer performs a service that the public pays $15 Billion per year (total annual subsidies). For anyone, that doubts my statement, imagine what would happen if we made people pay for the delivery of mail. If USPS charged $5.00 per month so that people could get mail that would kill the service. No one would be willing to pay USPS for junk mail.
Now don’t get me wrong I am a big fan of Bernie. But his idea of turning the post office into a bank sucks.