AustraliaPost chief Christine Holgate hits big four banks with $100m demand

AusPost chief says she’s a friend of the banks. But she’d be a better one if they hand over the $100m she says they owe.

Australia Post CEO Christine Holgate says she’s a friend of the banks. Pic Annette Dew

Australia Post chief Christine Holgate will ask the bosses of the nation’s big four banks to fork out $100 million by the end of this year to meet the cost of loss-making banking services provided in post offices.

Ms Holgate - the former Blackmores vitamins boss who took over the top role at Australia Post from Ahmed Fahour last October - will hold meetings with the chief executives of ANZ, NAB, CBA and Westpac over the next few weeks as part of a strategy reset of the national postal company.

Australia Post conducts 376 million annual transactions for customers of 70 financial firms through its Bank@Post service including the big four, according to a study it commissioned by Deloitte Access Economics.

It has called for the country’s largest banks to help fill its current financial shortfall.

“We unfortunately don’t get paid enough to cover the costs and that deficit is about $100m,” Ms Holgate told The Australian. “As banks close branches, we have seen a significant increase in the amount of work we are doing for them in those communities.”

The nation’s top four banks can clearly afford to pay the extra funds between them given their large profits, according to Ms Holgate.

“We’re not asking for a lot. We just want that $100m being covered by them,” she said.“If the big four banks paid Australia Post $25m each, that would cover the cost of providing that service and would they really notice it if they made a $9 billion profit?”

“We’re not asking for a lot. ... would they really notice it if they made a $9 billion profit?”

Despite the banks’ reputations taking a battering at the royal commission, the postal chief said she remains a supporter of the financial institutions.

“I’m a friend of the banks. I think they’re really important for our country and they’re clearly having some challenges,” said Ms Holgate.

“I’d like to be a bigger friend and I would be a better friend if they paid me a bit more.”

While the respective bank bosses are receptive to the idea, none have yet committed additional funding to back up Ms Holgate’s demands.

“I haven’t got one of them to get the cheque book out yet, but they are listening” she says.

Australia Post would push for the change this year, given declining letter volumes are pressuring other parts of the business and, hinted individual banks’ services could be withdrawn if its funding demands are not met.

“We need to fix it and we need to fix it this year. They need me in the community - they may not think they do, but their people keep walking in and using us,” said Ms Holgate. “If they don’t want to pay, we could always not do the work, and I suggest then they may lose some customers. People might switch to the bank that is prepared to pay.”

The banks’ poor conduct should serve as a warning to all Australian businesses, Ms Holgate added.

“As a CEO, when this is happening to our biggest banks, [you have to ask] could this happen to any one of us running an organisation,” she said.

“I’d love to work with the banks and help them with trust in the community. We can become the teller of the nation when people can come in and have choices about all of their banking partners and we can provide that for them.”

Australia Post would not consider replicating New Zealand Post’s creation of the state-run Kiwibank, but Ms Holgate said there were opportunities in sectors including insurance to boost its offerings to customers she said.