'Hongkong Post is missing a golden opportunity to generate increased revenues from its big branch network, play a small but instructive role in the global campaign against money laundering, and at the same time play the good Samaritan to migrant Philippine workers ...'
Forgive us if we crow a little but that was the introduction to a Banking World column on June 23 last year.
The column went on to argue that Hongkong Post outlets could profitably be put to service offering low-cost savings and withdrawal accounts in addition to the fledgling cash remittance service it had just begun piloting from 10 branches in a joint venture with Western Union. Small loans, generating interest income and ensuring that the service was not only self-funding but profitable, could follow.
As a model for the service, we urged Hongkong Post to consider the example of Kiwibank, the banking arm of New Zealand Post, which was capitalised with tax-payers' contributions in November 2001 but has since begun generating operating surpluses from explosive asset growth achieved by serving customers neglected by banks.
When we put the idea to Hongkong Post, however, the response was discouraging: the local banking market was mature, legislative amendments would be needed and a solid business case would have to be argued.
Where opportunity beckoned, it saw only obstacles. That was a year ago. Since then, the business case for the post office stepping into the widening breach left in banking services for small customers has grown steadily more compelling.
