Leveraging the Post Office Network to Foster Financial Inclusion

Financial inclusion has become a topic of discussion in emerging and developing nations since the majority of people continue to lack access to either formal or informal financial services. In many countries, the post office is seen as a vehicle for financial inclusion due to its extensive network. In addition, with the decline in sales of their core business, traditional mail has exacerbated the need for the post office to venture into financial services whilst simultaneously answering the call to bridge the gap in society, especially for the un-banked and under-banked communities. Moreover, there is a need for post-offices to protect their long-term vitality as a business. This paper provides a theoretical perspective of financial inclusion, the role that the post office can play and the challenges preventing an effective rollout of financial services. This review can help postal managers, governments and policy-makers to understand how they can effectively use the post office to serve the un-banked communities. In addition, the study has enriched the academic discourse by providing literature on postal financial services and financial inclusion.