Dumfriesshire, Clydesdale and Tweeddale MP David Mundell has cautiously welcomed plans by the Post Office to offer current accounts, following claims by the Office of Fair Trading that there is too little banking choice for consumers.
Although the Post Office has so far given few details about the current account, it will be available in some areas shortly before a wider launch next year.
The Office of Fair Trading (OFT) said that Lloyds, RBS, Barclays and HSBC held 75% of the market, leading to a "lack of dynamism" from the banks, and a lack of choice for customers.
Local MP David Mundell, who last month spent some time helping postman Ross Shearer on his rounds, has welcomed the proposals. He said it would offer the public a wider banking choice, especially those living in his largely rural constituency.
“While we presently do not have much information on the form of the current account in general it is a good idea, and one which I will be monitoring closely.
“In rural Dumfriesshire, Clydesdale and Tweeddale, many constituents simply do not have a ‘High Street’ bank branch in their village or community. The Post Office, on the other hand, has 11,500 branches, many within our rural communities.
“By offering current accounts they are giving those living in rural areas an alternative to mainstream banking, one which is possibly better suited to them if they do not have a High Street bank nearby. And by offering a wider range of service over the counter this should, hopefully, also help protect our rural post offices from any threat of closure,” he added.