POSTBANK, the banking joint venture owned by An Post and Belgian bank Fortis, is exploring the possibility of selling mortgages through the State's 1,000 post offices from next year.
Margaret Sweeney, chief executive of Postbank, which launched its new current account yesterday, said it was carrying out research on the Irish mortgage market and the type of mortgages offered by Fortis in countries around Europe.
She said it would be next year before it could sell home loans, given "the significant back-end build" required for mortgages.
"There is a demand out there. For the average consumer, buying a home in Ireland is a key part of their personal financial needs, and we are currently at the stage of strategy and exploring that, and looking at what Fortis has on offer in other markets in Europe."
She said Postbank had found that there was "complexity" in the Irish mortgage market, with 185 products for borrowers to choose from, and that there was a demand for "simple, straightforward mortgages".
The credit turmoil presented an opportunity for a new mortgage provider as lenders withdrew home loan products due to the higher cost of bank funding.
"If anything, there is an opportunity there. Our timing is very good. The corrections that are happening in the market make our timing good in terms of going into it. Consumers will be looking for much more simple and straightforward [products], and no surprises. A lot of them are getting quite a few surprises at the moment."
She said Postbank was introducing new products as other lenders were withdrawing products from the market.
Ms Sweeney said that the bank's current account would initially be available in 270 post offices but would be extended to all 1,000 post offices over the summer. She said Postbank was hoping to recruit 25,000-30,000 customers to its current account this year.
The Everyday Account offers free transactions and a €250 overdraft carrying an interest rate of 12 per cent if customers show their most recent payslip and a one-month bank statement. Customers can withdraw cash and spend with a Maestro ATM-debit card.
Postbank, which made a loss of €25 million last year, is investing €40 million in the roll-out of the bank. It has attracted 100,000 customers to its banking and insurance products since its launching a year ago. It has two deposit products: the Solid Saver account, which offers a rate of 3.3 per cent; and the Premium Saver account, which offers a rate of 4-4.3 per cent on balances over €10,000.
Postbank also sells motor, home and travel insurance as well as a life assurance policy for the over-50s.
The bank has created separate "financial zones" in 18 of the busiest post offices where Postbank staff work alongside An Post staff. It has plans to extend the zones to the 50 busiest post offices.
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