Post Office takes on banking

The UK Post Office could become a full bank after business secretary Lord Mandelson opened a public consultation on new financial products and services that could be offered by the organisation, reports Computer Weekly.

These services include current accounts, children's savings accounts and business accounts.

If the idea becomes a reality, the Post Office will need to invest heavily in IT systems to compete with existing banks and new players such as Tesco, which recently announced it had bought a core banking system, an essential system for any organisation that wants to offer banking services.

The UK's mobile banking market is growing at over 30% a year, according to a new report by the Future Foundation think tank and mobile banking company Monitise, showing the sector is gaining real momentum, states Cellular-News.

A survey of 1 000 adults revealed 5.6% used their mobile phone to access their bank accounts and manage their finances in November 2009, up from 4.3% a year earlier.

About a quarter of UK current account holders use the Internet to monitor their money, and mobile phone banking is expected to surpass this as technology and services grow.

Fundtech, provider of global transaction banking solutions, has been named one of the banking industry's top technology innovators by Bank Technology News, says CNNMoney.

The 2009 Annual Innovators Ranking recognised Fundtech for its industry-leadership and innovation in transaction banking, specifically with the development of its Global PAYplus services platform (SP).

"Fundtech's Global PAYplus-SP was selected because it allows banks to take great strides in the degree of service they offer clients around payments at a time when payments is a crucial area of competitive advantage in financial services," said Rebecca Sausner, editor-in-chief of Bank Technology News.