Banks to discuss possible role for post offices
A taskforce will explore the feasibility of allowing customers to make bank transactions at post offices, the Hang Seng Bank's chief said yesterday.
Speaking at a public function, Raymond Or Ching-fai, the bank's vice-chairman and chief executive, said the Hong Kong Association of Banks would discuss branch networks during a regular meeting this week.
'The association will continue to examine the possibility of having Hongkong Post provide simple banking services, such as allowing Comprehensive Social Security Assistance recipients to collect their welfare money at post offices,' Mr Or said.
But he believed there were enough bank branches to meet service demands, if more customers made use of phone and internet-banking services.
Bank of East Asia (BEA) chairman David Li Kwok-po said the bank was planning to expand some of its smaller branches and had no intention of cutting its branch network.
BEA's senior general manager, Samson Li Kai-cheung, said it was difficult to sell products such as funds and insurances through cyber-banking services, so there was a need to retain a branch network.
The bank welcomed proposals to allow customers to bank at post offices, but the government needed to work out details of the plan.
A spokeswoman for Hongkong Post said the scope of its service was regulated by law.
'Hongkong Post is facing certain constraints regarding our service scope because of the ordinance,' she said. 'But we welcome any discussion with the banking field to explore any possible business opportunities that the present law allows. The association still has not approached us, though.'
Banks have been criticised for not taking their social responsibilities seriously by not having enough branches to serve customers in public housing estates.
The three note-issuing banks - HSBC, Standard Chartered and Bank of China (Hong Kong) - were taken to task by legislators in November after it was revealed they had cut the number of branches by 27 per cent, from 580 to 422, during the past four years.
