top of page
  • Frank Tian

📨 Personal Loan in Post Office

Updated: Jan 28, 2023

From Oct 12, Canadian consumers can get personal loans at post offices, under a partnership between TD Bank and Canada Post.

💰 This is the latest example that consumer lending spreads to consumers’ daily scenes - being offered at non-financial outlets.

The interest rate is roughly 10% - 20%. Amount $1K-$30K. Terms 1-7 years.

This is a loosely embedded finance - as the loan is not directly tied to purchase at Post Office.

TD is able to leverage the 5,000+ post offices throughout Canada as a distribution network, while the applications are completed online or via phone.

The success depends on how Post Office can effectively market the products, to the right customers, while handling its main job.

🇺🇸 In the US, a pilot in 4 areas by US Postal Service only won 7 customers since Sep 2021.

The pilot is a test to revive the once-booming postal banking in the US, which died in the 1960s when the deposit insurance system allowed banks to steadily win business.

The services offered in USPS pilot include check cashing, bill pay, and ATM access, as well as upgraded money orders and wire transfers.

From my limited experience in the USPS offices, they were always busy with a slow-moving customer queue. 🤷‍♂️

Sources: Canada Post, TD, CU Collaborate.

Image source: Canada Post

🔹If you enjoy this post, consider receiving content like this in your inbox

Recent Posts

See All

🔎 BaaS Partnership in Regulatory Focus

Last week, Blue Ridge Bank named a new president for its fintech division. It makes perfect sense to bring in someone with direct BaaS partnership supervisory experience. The community bank signed a r

🙅‍♂️ Loan Application Not Available

A newly launched loan product between a bank and its non-bank partner has suspended applications for days. According to unnamed sources, the program quickly runs into a fraud problem. A few thoughts -


bottom of page