The Government has approved a major deal between An Post and Belgian-Dutch financial services group Fortis to provide customers in Ireland with financial services normally associated with a retail bank.
The venture, which wll be jointly owned by An Post and the Dublin branch of Fortis will employ some 250 people initially but it is hoped will increase staff numbers to 500 within five years.
The joint venture in which each group are equal parties will utilise the network of post offices throughout Ireland to deliver a wide range of retail banking products and services.
The services will include insurance, mortgages, credit cards and telephone and internet banking.
An Post will provide access to its network of branches together with PostPoint and One Direct while Fortis will contribute its international experience and expertise as well as cash.
The products and services of the joint venture will be rolled out from early 2007 following an extensive programme of training, refurbishment, branding, promotion and product preparation.
Minister for Communications Noel Dempsey, said: "This new venture will build on the existing strengths of the network including its nationwide reach, recognised brand name, high customer base in excess of one million people and the enduring relationship between postmasters and their customers."
Commenting on the new joint venture An Post's chairperson Ms Margaret McGinley said: "This initiative will allow us to restate, and reinforce An Post's relevance to the community that it has served so well for so many years by making financial products and services more readily and widely available.
"We intend to build on the trust that people have in An Post and we will ensure that we provide a strong appeal to a younger and more diverse Ireland," she added.
Mr Thierry Schuman, General Manager - 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."