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Reliance Bank joins campaign to fight Australia Post's unfair pricing policy

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Reliance Bank has become one of many mutual banks that has been asked to agree to an unfair pricing policy by Australia Post for customers to access Bank@Post.

Despite Australia Post CEO Christine Holgate publicly ruling out applying a Community Representation Fee (CRF) to smaller banking institutions in front of a Senate Estimates Committee in October, Reliance Bank has been asked to agree to colossal new costs.

Under Australia Post’s proposal, Customer Owned banks will be forced to pay a substantial annual fee on top of increased transaction costs, or their customers will no longer be able to use Bank@Post to do their banking.

Australia Post has previously claimed the CRF is necessary to subsidise the losses from Bank@Post services and make new infrastructure investments. The investments are said to be needed as a result of the increase in volumes of cash post offices are handling as bank branches close.

The Big Four are those primarily responsible for branch closures and handle banking for the vast majority of small businesses. Reliance Bank is proud to have not closed any branches in the past year.

The CRF is so significant and disproportionate that for Reliance Bank, Australia Post is asking for 20 per cent of annual profit. This is compared to approximately 0.3 per cent for the ‘Big Four’ banks.

Customers of Reliance Bank and other Customer Owned banks are being urged to write to Australia Post CEO Christine Holgate and Communications Minister Mitch Fifield to demand that the CRF fee isn’t applied to smaller banking institutions. Customers can do this by visiting: http://www.fairbankingaustralia.com.au

The campaign asks the Government to intervene and demand Australia Post doesn’t charge fees that are disproportionate to the volume of transactions generated by each banking institution.

“Reliance Bank is happy to pay its fair share for a service, but should not be forced to cover costs created by the ‘Big Four’ banks.

“We’re urging the Government to listen to our customers and the millions of others customers of credit unions, mutual banks and building societies to ensure we’re only paying our fair share,” said Mark Genovese, Chief Executive Officer of Reliance Bank.