Attempts by the U.S. Postal Service to expand its offerings to include financial services at a time when improvements to its existing services are needed is “irresponsible,” Sen. John Boozman (R-Ark.) wrote in an op-ed published in The Hill this week. Boozman noted that USPS’ financial services pilot—which it quietly rolled out earlier this year—“likely overstepped” its authority, and several GOP lawmakers are calling on the agency to prove that its actions were lawful.
Boozman raised concerns that the creation of a postal banking system would expose taxpayers to additional financial risk, and cast doubt on USPS’ ability to deliver financial services safely and responsibly. “Safe banking requires specialized experience in underwriting and managing assets and liabilities, building and maintaining consumer privacy and data security systems, and complying with detailed regulatory standards and sound risk management––all areas in which USPS has no expertise.”
He added that meeting the financial needs of local communities is a job “best suited for community banks. Local financial institutions help propel economic growth and job creation by providing access to credit. These lenders understand needs in the areas they serve and offer opportunities for small businesses and families to secure vital funding.”
