LONDON (Brand Republic) – The Post Office’s Clear bank will be run by a third party, if the government goes ahead with plans to tender out the contract.
The bank is part of a drive by the government to ensure social security payments are paid directly into bank accounts. As many as 4m recipients do not have bank accounts and the Clear bank accounts will give them basic banking facilities.
Potential companies who could win the business include Girobank, the former post office-based bank now owned by Alliance & Leicester, and Link, which connects the country’s cash machine network.
The annual cost of running the Clear service is put at £300m, but the government wants the financial services sector to contribute £130m of this each year.