Government Approves An Post Negotiations with Fortis
14 February 2006
Assuming successful conclusion of negotiations regarding product specifics and retail strategy, An Post and Fortis expect to bring products to the market early next year.
“We are very pleased with the Government’s decision to sanction the next stage of An Post’s development strategy. This is a highly significant step forward for An Post, its staff, its contractors and its customers, both private and corporate,” commented An Post Chief Executive, Mr Donal Curtin.
“An Post has a unique role in providing a broad range of services to Irish people of all ages and backgrounds. We expect to continue this proud tradition through the provision a suite of financial products that will be relevant and accessible to all customers including the significant portion of Irish consumers who are currently unbanked.
“We now have the opportunity to generate a substantial and strategically important new revenue stream which is key to supporting our unrivalled network of urban and rural post offices. This will secure and grow the future income of dedicated Postmistress and Postmaster contractors in post offices across Ireland,” he added.
Given the strength of the An Post brand, its pre-eminent retail network and established reputation in savings, the joint venture is well positioned to offer An Post’s substantial customer base a highly competitive, modern range of Financial Services offerings. As a new player in the financial services market, it will build on the experience of many international postal operators who have successfully entered this arena in recent years.
The development of a Financial Services model was one of the key elements of the strategic recovery plan for An Post announced by Chief Executive Donal Curtin in September 2003.
Detailed preparatory work was undertaken over the following 18 months which resulted in the appointment in early 2005 of independent consultants to assist with a rigorous evaluation process to identify a preferred banking partner.
The process comprised several stages and culminated in Autumn 2005 with the presentation of substantial proposals from four major Irish and European financial institutions. Fortis emerged as the preferred partner based on their financial proposition, proposed strategy and their particular expertise in postal banking.
Fortis is an international financial-services provider engaged in banking and insurance. With a market capitalisation of EUR 37 billion, Fortis ranks among the twenty largest financial institutions in Europe with a presence in 44 countries and a workforce of 56,000.
Fortis occupies a leading position in banking and insurance in the Benelux countries and provides expertise in niche markets such as shipping, commodities, export and project finance and fund administration. Fortis also provides retail-banking services in France, Poland and Turkey and successfully combines its banking and insurance expertise in growth markets in Europe and Asia and leads the bancassurance markets in Spain and Portugal.
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