NBU criticized the idea of allowing Ukrposhte to provide banking services
Today, Verkhovna Rada adopted the first reading bill number 2788-d on the creation of the state’s “Postal” bank. Voted in favor of 232 deputies.
The document, in particular, introduces a system of postal accounts, and also defines the list of financial services that Ukroptha can provide. Among them: opening and maintaining postal accounts, conducting settlement operations, issuing and servicing payment cards, conducting foreign currency transactions, raising money from individuals and legal entities, collecting cash and transporting currency values.
National Bank strongly opposed this initiative and said that it is a step towards increasing the state’s monopoly in the financial sector. To strengthen his position in the NBU, he made several arguments:
- This is irrational. The role of the state in the banking sector should decrease, not development. Reducing the role of the state would ease competition and, accordingly, increase the quality of financial services. Today, the state’s share is 55%. Together with the government, we plan to reduce it to 25% by 2025 due to partial privatization of state banks.
- It is unforgivable. Ukropsatha would be in a privileged position when compared with similar banks. The postal operator will receive all the benefits and opportunities of conducting banking activities, but will have no responsibility. The postal operator is not required to obtain a banking license, it does not need to follow standards and requirements to operate with public funds. NBU Ukrposhta will be able to set up the procedure for opening and maintaining accounts only.
- It is risky. Ukrposhta does not understand the real value of running a banking business. Banks are spent on building financial monitoring systems, risk control, managing other people’s funds, compliance, data and branch security. In addition, Ukrposhta has less expertise in financial monitoring than banks. Therefore, the risk of money laundering increases.
As an alternative, the NBU offered Ukrposhta an opportunity to provide agent services in rural areas on behalf of banks, as well as operate under the new payment law.
The reference PAYSPACE magazine
Recall that in “Ukrposhte”, Ukrainians were given the opportunity to receive a parcel, which confirms their identity with an electronic driver’s license. To use the service, you will need to install a Dyna mobile application.
This function only works for domestic shipment with cash on delivery in the amount of up to 15 thousand UAH (Ukraposhta Express, Ukroposta Standard, Ukroposta Smartbox). To obtain the remaining types of items, you must still have a passport or other identity card with you.
Read: Ukrposhta has expanded the number of accepted cards: now how you can pay for services.