Lithuanian postal operator will not turn into bank, to expand financial services instead

  • 2020-10-05
  • BNS/TBT Staff

VILNIUS – Lithuania’s postal operator Lietuvos Pastas (Lithuanian Post) will most likely not turn into a specialized bank given that such a scenario, as estimated by experts, would be uneconomic but will expand its financial services instead.

“Today, we do not see any use in establishing a stand-alone company on the framework of Lietuvos Pastas, an LP bank,” Lithuanian Transport Minister Jaroslav Narkevic told the reporters on Monday after a meeting with the management board of Lietuvos Pastas.

The analysis of three potential alternatives had shown that the establishment of a specialized bank and the development of electronic financial services of the postal operator would not be practicable in economic terms, the minister said adding that it had been decided to choose the third option, i.e. to expand financial services provided within the network of Lietuvos Pastas, which would require the least investment.

Lietuvos Pastas CEO Asta Sungailiene mentioned four key services: cash withdrawal and deposit transactions, daily transfers and cash payments, payments by card and other banking services that would be provided by the offices of the operator’s network.

“We are one of the market players with the broadest network and we are definitely able to offer payments to companies that render utility and similar services,” she told the reporters.

Lietuvos Pastas would introduce payments by card and withdrawals of small amounts of money in all its branches as early as at the end of 2020, Sungailiene added.

An analysis carried out by law firm TGS Baltic had revealed that the establishment of a specialized bank would require more than 31 million euros in investment, Narkevic told the reporters.