State-owned postal services provider Ukrposhta proposes amendments to the current legislation which would allow Ukrposhta`s entry into the financial services market and the issuance of own payment cards to service individuals` accounts, according to Ukrposhta Director General Ihor Smilyansky.
”It is about the expansion of financial services offered by Ukrposhta through amendments to the law on postal service. These changes will enable the company to open deposit and current accounts, issue payment cards, provide cash collection services,” Smilyansky told reporters.
To implement the initiative Ukrposhta suggests introducing to the legislation a concept of `post office accounts` as an alternative to bank ones.
”The draft law we propose introduces a new definition – `post office account`. It`s a new concept for Ukraine, but it is a common practice in the world,” Smilyansky said.
To provide financial services Ukrposhta plans to use the national payment system Prostir.
Payment cards issued by Ukrposhta would be used by people to make purchases online, transfer funds from one card to another, pay utility bills, as well as receive pensions and wages.
According to Smilyansky, Ukrposhta`s initiative is aimed at residents of small towns where banks are usually not present.
”There are no banks in 65% of Ukrainian settlements, therefore, it is an issue of ensuring access to the civilized world,” Ukrposhta CEO said.
Further, Smilyansky noted that the provision of financial services is one of Ukrposhta`s priorities.
Ukrposhta is the national operator of postal service in the country under the authority of Infrastructure Ministry. The company offers more than 50 types of services in 12,000 offices throughout Ukraine. The company employs about 76,000 people.
Ukrposhta processes and delivers over 240 million postal items, 16 million parcels and insured items, carries out 15 million transfers and 83 million pension payments annually.
In 2015, Ukrposhta posted a profit of UAH 53 million, the highest result over the past 15 years. In 2014, the company incurred a UAH 4 million loss.
