Canada Post expands into banking amid financial woes

In a bold move to generate new revenue and address mounting financial losses, Canada Post has launched the MyMoney Account, a digital banking service developed in partnership with Canadian fintech company KOHO.

The initiative follows the lead of postal services in countries like the U.K. and France, which have expanded into financial services to offset declining mail volumes and evolving consumer demands.

According to Canada Post, the MyMoney Account aims to provide Canadians with a fair, transparent, and accessible banking alternative, particularly benefiting underserved communities, including rural and Indigenous populations. Offering spending and savings tools, as well as credit-building features, the service is designed to complement Canada Post’s existing financial offerings, such as money orders and prepaid cards, while leveraging its extensive retail network.

This shift comes at a critical time for the Crown corporation, which has struggled with significant financial deficits since 2018. Earlier this year, the federal government approved a $1 billion loan to sustain operations, following a disruptive nationwide strike that halted mail and parcel deliveries for an entire month during the peak holiday season.

As Canada Post ventures into the banking sector, questions remain about whether it can compete with traditional financial institutions while managing its own fiscal challenges. Read the full story in the next print edition of Canadian Stamp News.

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