“Why the unions are so opposed is that that model will be a much smaller post office. “Canada Post is going to have to reinvent itself as the preferred partner of all the e-commerce companies, whether it’s Amazon or whomever, because all those products ordered online have to be physically shipped,” he said. However, he says the volume of cheques in the mail and handwritten letters has “collapsed” in the digital era, leaving only one viable option. Lee says the new initiative has public relations value for TD Bank and for a government that pledged to innovate to help Canada Post. That’s what’s so preposterous about this, suggesting that you can’t get this service in the rural areas.” … They can walk in just as easily at any TD Bank or pick up the phone. “All the post office is doing is acting as another channel to bring in customers for the TD Bank. And so the idea that there are large numbers of people under-banked is factually false,” he said. That means 1 percent of Canadians do not have a bank account, which is an infinitesimally tiny, tiny number. “According to the Canadian Bankers Association, 99 percent of Canadians have a bank account. In an interview with The Epoch Times, Lee said there’s neither a market for nor much benefit to be had from the new loan service. “Other fundamental and transformational changes must be brought to bear.”Ĭarleton University business professor Ian Lee had testified before the task force, drawing on his experience as a lender for a major bank, a stint working at Canada Post’s head office, and reports on the corporation he had written for the MacDonald-Laurier Institute. “Although operational viable options have been presented, they alone are insufficient to bridge Canada Post to a financially sustainable future,” the report concluded. In its report, the four-member panel suggested that distribution of marijuana, less frequent door-to-door delivery, and more community mailboxes could help the mail carrier, whose pension liabilities had already reached $8.1 billion. In 2016, a task force examined the idea of mail banking as put forward by the Canadian Union of Postal Workers but determined that it would only generate marginal revenue. The interest rates are determined by TD, but current variable rates range from 9.78 to 19.78 percent, while fixed rates vary from 9.98 to 19.98 percent. The initiative will make loans of $1,000 to $30,000 available, to be repaid over one to seven years, and customers will not need a bank account or credit history to apply. The initiative emerged “after working closely with the Canadian Union of Postal Workers and the Canadian Postmasters and Assistants Association,” according to a press release, and offers an “inclusive” service “to Canadians across the country, including rural, remote and Indigenous communities.” 12, Canada Post announced the national launch of its MyMoney loan service in partnership with TD Bank Group. In an ironic twist, Canada Post is facing such difficult financial challenges that it is now facilitating loans, but some say this will do little to remedy the Crown corporation’s problems and what’s needed instead is an overhaul.
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