Could consumers start taking out a loan at the same place they buy stamps?

A recently released report by the Office of the Inspector General (OIG) of the U.S. Postal Service states that the United States Postal Service could partner with banks to offer a wide range of services to the unbanked. The idea has been kicked around before. And it might not be a bad thing at face value, but there are more questions then answers.

If a post office were to offer “bank-lite” services, neighborhoods that are not served by a bank branch would all of a sudden have access to a bank-like institution. For instance, the Postal Service could offer prepaid debit cards or partner with a bank to offer interest-bearing savings accounts. Or it could make a loan. This might be good for a rural part of the country, but not in bank-heavy Massachusetts.

The bottom line is the Postal Service should not turn itself into a bank. Making loans and offering savings and checking accounts should be the job of an actual bank, not the job of an organization that charges people to send mail and is in deep financial trouble itself.

In the report, the Postal Service touts its own brand as a trusted institution and makes clear that that trust can be transferred to the financial services world. Offering some financial services, with proper oversight, might be a good way for the Postal Service to make money and offer more services to consumers. But we shouldn’t go down this road.