Postbank launched yesterday with .
Many questions come to mind
* What is An Post's core mandate and how does this venture serve that mandate?
* The launch products don't seem particularly competitive. How do consumers benefit from this JV? How do An Post shareholders (the state) benefit?
* The JV hopes to offer current accounts before year end. How does this affect the deal with AIB for limited counter services in post offices?
* Why do we need a semi-state bank? Could the EU object to this JV? (cf recent EU activity against state bank subsidies in Germany.).
An Post have spent €13.9m "in relation to the process of identifying and selecting a joint venture partner, subsequent negotiations and signing of the (JV) agreement".
* Did the Single European Payments Area feature in this process?
* Did An Post investigate a financial services alliance with foreign state post offices?
* Existing OneDirect products and customers are being moved into this joint venture. Have An Post been adaquately rewarded for sharing this business with Fortis? How? (Bear in mind each owns 50% of the JV.).
Update: An Post's 2006 Annual Report attempts to answer some of these questions:
Many questions come to mind
* What is An Post's core mandate and how does this venture serve that mandate?
* The launch products don't seem particularly competitive. How do consumers benefit from this JV? How do An Post shareholders (the state) benefit?
* The JV hopes to offer current accounts before year end. How does this affect the deal with AIB for limited counter services in post offices?
* Why do we need a semi-state bank? Could the EU object to this JV? (cf recent EU activity against state bank subsidies in Germany.).
An Post have spent €13.9m "in relation to the process of identifying and selecting a joint venture partner, subsequent negotiations and signing of the (JV) agreement".
* Did the Single European Payments Area feature in this process?
* Did An Post investigate a financial services alliance with foreign state post offices?
* Existing OneDirect products and customers are being moved into this joint venture. Have An Post been adaquately rewarded for sharing this business with Fortis? How? (Bear in mind each owns 50% of the JV.).
Update: An Post's 2006 Annual Report attempts to answer some of these questions:
The selection of Fortis, as An Post’s joint venture partner for the provision of retail banking services was a highlight of 2006. Selected in autumn 2005 from a shortlist of four potential partners, Fortis is one of Europe’s largest financial services companies. The market leader in the Benelux countries, it has operations in 20 countries and operates the Belgian Banque de La Poste. With a straightforward value for-money proposition Postbank will be particularly appealing to customers traditionally underserved by the banking sector and the many who have a natural affinity with An Post. I am pleased that this represents genuine fresh thinking within the sector, bringing more to the communities we serve than simply another banking option.
...
The development of this concept was a major project in respect of which exceptional costs amounting to €13.9m were incurred. Full value was achieved in negotiations for An Post’s contribution of the Postpoint and One Direct businesses to the joint venture.