Govt approves joint venture between An Post and Fortis
The Government has approved a joint venture between An Post and the Belgian/Dutch international financial services company, Fortis.
The retail bank will offer insurance, mortgages, credit cards, and other services to the Irish market.
The joint venture will employ approximately 250 people initially, rising to 500 within five years, and its products will be rolled out between March and July of 2007.
Fortis, which has a market capitalisation of €39.7bn, is participating in other joint ventures elsewhere, notably with the Belgian post office.
The joint venture will be a 50/50 partnership between An Post and Fortis.
An Post will provide access to its network of branches together with two trading entities, PostPoint and One Direct. Fortis will contribute its international experience and expertise as well as cash.
One Direct will form an integral part of the new company from its headquarters in Athlone.
The new financial services joint venture will use the network of post offices provide telephone and internet banking among other services.
An Post’s chairperson Margaret McGinley said: "This is a very important and exciting day for An Post and we are delighted to welcome Fortis to this joint venture. We are confident that the joint venture will provide a strategically significant and sustainable alternative income stream that will contribute to the future financial stability of An Post."
An Post’s Chief Executive Donal Connell said: “We are delighted to be welcoming such an internationally successful financial services partner as Fortis to this joint venture and the establishment of this new banking service. This deal is of significant importance to An Post, its customers, its staff and contractors and gives the company a new relevance in the economic, business and social life of the nation.”
Thierry Schuman, General Manager of Retail Banking, Fortis said: “We are happy that the Irish Government has approved this joint venture and by doing so, has endorsed the very detailed preparation and background work undertaken by both parties. Together we look forward to combining the best of An Post’s tradition of trusted customer service with the banking and insurance expertise of Fortis to provide a truly innovative new retail banking experience for all – customers, staff and Postmasters alike.”
