Will an Australian Postbank offer home loans?

Christopher Joye, head of Rismark International, has suggested that a logical move for an Australian Postbank would be to offer home loans either by becoming a third-party lender or providing white label products.

One proposal the head of former prime minister John Howard's home ownership taskforce put forward would see Australia Post align with second-tier banks and credit unions to offer mortgages. Another, would see it create an Australia Post line of products through an existing non-bank lender.

Australia Post already has the advantages of having an instantly recognisable brand and an unrivaled distribution network.

Speculation that Australia Post managing director Ahmed Fahour will create Postbank is gathering momentum as the former NAB chief looks to strengthen the company's balance sheet and increase profits.