Why Banking in the postoffice might be a Better Option Than Payday Loans — and Wall Street

Why Banking in the postoffice might be a Better Option Than Payday Loans — and Wall Street

New york postoffice. Picture by John Donges.

The U.S. postoffice on Martin Luther King, Jr. Blvd. is a bastion on its Harlem block. Entrenched beside a pawnshop, a cash-for-gold company, and a commercial bank numerous when you look at the neighbor hood aren’t able to make use of, the center is basically a fortress. Filled with heavy stone walls, metal displays, vaults, ATMs, and armored vehicles, the premises evoke one word: protection. In the event that you’ve followed present news, in addition they recommend a moment term: Bank.

Post workplaces are designed like banking institutions.

And that is just one single good reason why postal banking, a hot concept in financial policy debates, is viable. Real and functional structures already occur that may help USPS provide basic monetary solutions: prepaid debit cards, mobile deals, brand new check cashing solutions, cost cost savings reports, as well as easy, small-dollar loans.

“There’s a post workplace every five obstructs in Manhattan — there’s accessibility in most zip rule,” explained Frankie Wright, 32, a USPS Supervisor of Customer Services in East Harlem. “On a operational degree, we’re already capable.”

The concept, popularized by journalist David Dayen and legislation teacher Mehrsa Baradaran, would develop general public selection for credit which help insulate Main Street into the likely event of some other financial meltdown. Continue reading “Why Banking in the postoffice might be a Better Option Than Payday Loans — and Wall Street”