One proposal suggest that the United States Postal Service (USPS) could bring banking services to small communities.
The USPS proposal has been backed by Sen. Elizabeth Warren as a way to provide safe banking services. According to Warren, banks in these small communities could lend money to people without giving them huge interest rates. This would protect the people from high-interest lenders that target small communities with few banking options and could also be a source of revenue for the USPS, reports ThinkProgress.
The average person spends $520 to get a $375 payday loan from high-interest lenders. However, USPS offices could offer those loans without the high-interest. Six out of 10 USPS locations area already in communities that could benefit from the change and it could also potentially bring $9 billion to the USPS, ThinkProgress notes.
The USPS has offered simple banking services in the past, but it discontinued those services after banks started offering higher interest rates.
The opinions contained in this column are solely those of the writer.
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