• on Nov 14th, 2011 in Ideas Worth Exploring | 28 comments
    Out of 23 posts in industrialized countries, the U.S. Postal Service is one of the few remaining posts not offering an eMailbox solution to its citizens. And while there are private sector technology industry standouts in the U.S. that have developed widely popular e-mail and secure storage services, their business models sacrifice consumer privacy in the interest of ad-based revenue generation. In an increasingly digital world, it may make sense for the Postal Service to offer eMailbox services in addition to traditional delivery. A consumer would also be able to sign up for an accompanying highly secure data storage area service called the eLockbox, which would provide added security for the archiving of important legal and personal documents with anytime, anywhere secure access. Today many electronic documents, especially financial records, reside primarily on the banks or billers Web site and not with the consumer. The Office of Inspector General Risk Analysis Research Center’s new paper eMailbox and eLockbox: Opportunities for the Postal Service (Report Number RARC-WP-12-001) explores these concepts. This white paper is the fourth paper in the Digital series, and presents a case for offering an eMailbox and eLockbox. Some of the paper’s findings include: 1.As communication channels become increasingly consumer-centric, the eMailbox and eLockbox would empower individuals to transition to full electronic delivery at their own pace. 2.The linking of one’s physical identity and address to the eMailbox address will provide high identity assurance necessary for transactions, which require privacy, confidentiality, authentication and non-repudiation such as for legal and financial correspondence. 3.The Postal Service, offers protection from theft, interference, fraud and forgery under federal law, utilizing two law enforcement organizations (the Office of Inspector General and the Inspection Service). 4.Advertising mail would only be allowed from entities registered with the Postal eMailbox system and with the consent of the receiver. Together, the concept of the eMailbox and eLockbox services reflects a natural extension of the Postal Service’s role in the physical world as the trusted custodian of the nation’s address management system. The product provides a digital service linking American households and businesses in a trusted and verifiable way, while empowering consumers to determine the pace and extent of the service’s use. This product suite should be further developed as the organization implements new digital services. What do you think? Would you use a Postal eMailbox? This blog is hosted by the OIG’s Risk Analysis Research Center.
  • on Oct 10th, 2011 in Finances: Cost & Revenue | 57 comments
    Much emphasis has been placed on reducing the Postal Service’s costs in response to its financial crisis. Yet financial viability could come in the form of a balanced approach that both reduces costs and increases revenue. How would a smart business respond to declines in its major products? Would it raise prices where possible in stagnant areas and invest the proceeds into existing or new growth areas? Would it selectively discount products to grow volume in price sensitive segments? Disruptive innovation, such as that underway in the communications sphere, requires change to ensure the Postal Service has what it needs to move beyond the critical crossroad it faces today. The Office of Inspector General Risk Analysis Research Center’s new paper Postal Service Revenue: Structures, Facts, and Future Possibilities (Report Number RARC-WP-12-002) addresses the major components of the Postal Service’s revenue structure in Fiscal Year (FY) 2010, assesses existing opportunities permissible under the current framework, and discusses future options and policy considerations in a new era. Click here to read the Postal Service Revenue: Structures, Facts, and Future Possibilities white paper. How would you approach the revenue issue to make sure the Postal Service continues to provide self-funded universal service to the American people? This blog is hosted by the OIG’s Risk Analysis Research Center.
  • on Oct 3rd, 2011 in Finances: Cost & Revenue | 18 comments

    When you buy your groceries, how do you pay for them? What about when you go to the gas station or neighborhood restaurant? How do you buy items online? Cash may still be king, but in everyday life, it is being eclipsed by newer digital payment methods such as credit cards, debit cards, and electronic transfers. These payment methods are often more convenient than carrying around lots of cash, but they are not equally available to everyone. People who don't have bank accounts or credit cards cannot access the full-range of digital currency products. One option that is available is prepaid payment cards. Prepaid cards are preloaded with funds and then can be used like a credit or debit card. They are the fastest growing form of digital currency. More and more people are receiving their pay through prepaid cards. Unfortunately, customers sometimes must pay predatory fees to redeem the cards for cash or reload them. Is this an opportunity for the Postal Service? The Postal Service has the trusted brand and a vast retail network to ensure national coverage. It has experience helping the unbanked and the underbanked. It has sold postal money orders for about 150 years. In certain areas, the Postal Service offers wire transfer service. Should the Postal Service look into upgrading its payment offerings for the digital age? A new OIG white paper Digital Currency: Opportunity for the Postal Service examines whether there is a role for the Postal Service in the world of digital payments. The paper finds that the Postal Service is well positioned to expand into new digital currency products such as prepaid cards because of its widespread network, trustworthy reputation, and longstanding experience in providing payment services. The paper also provides some suggestions for an implementation strategy. Click here to read the Digital Currency: Opportunity for the Postal Service white paper. What do you think? Are prepaid cards a good opportunity for the Postal Service? This blog is hosted by the OIG’s Risk Analysis Research Center.

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