On a different blog, I wrote an article about the Japanese Postal Service.
Here is an update to the article.
The Japanese Postal Service does more than deliver the mail. They are a bank of some sort.. They provide the service of keeping money in safe deposit while earning a modest interest rate. The intent of the service was to give access to banking "safe deposit" services to rural Japan. The savings is government insured.
The postal service has aided in expanding commerce as "telephone shopping" (mail order) is very popular. It offers a way for business and individuals to exchange cash for goods.
As of October 1, 2007, the Japanese Postal Service has been privatized. There are four companies. The Japan Post Holdings, a holding company for all corporate affiliates. Japan Post Network, the Postal Service. Japan Post Bank, the banking arm. Japan Post Life, Life Insurance Company.
This is not the first time that a Japanese Government run service has been privatized. Japan Railways was privatized in April 1987.
I am of the opinion that from a financial perspective, the privatization will be successful. Like JR, the postal system does have considerable assets. JR's value is in its real estate holdings. The postal system has its depository assets. The decreased government control should provide additional opportunities for the Japan Post to expand their lines of business much like JR has transformed from transportation provider to a diversified corporation that includes real estate, services and even cashless payment services (Suica).
What does this mean for the citizen's in Japan. Well, the effect of privatization has many in rural Japan worried about their access to postal services. Will "unprofitable" routes be cancelled? JR cancelled many services to rural areas of Japan, subsequent to its split because it was not profitable. Will neglected areas be served by smaller companies, local government or non-profits?
What happens to our savings deposits? Before the proliferation of banks, the postal service was the place for the Japanese to deposit their funds in savings accounts. The postal service does still have a large share of the deposits.
Only time will tell.
The Postal Service offers ATM's which can be used by Westerners. What I really want to know is if I can still access yen with my US debit or credit card. The more pressing question is whether the new private post offices will let me take out more than 10,000 yen per transaction.
Check to see if it accepts your card.
http://www.jp-bank.japanpost.jp/en/ias/en_ias_index.html
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