The Government wants the Post Office to offer a wider range of financial services products and become a more significant player in the mortgage market.
The Government has opened a public consultation on what it calls "this Great British institution" to seek views on how it can operate in the future.
Business Secretary Lord Mandelson says: "Growing financial services at the Post Office will help secure the future of the network and give people access to a full range of banking products at an institution they trust and value."
Other proposals include forging a closer link between the Post Office and credit unions, making it easier for credit union account holders to access their accounts when not in their local area.
Mandelson says it will be important to ensure all banks' current accounts can be accessed at a Post Office - currently only 60% of current account holders, or around 25m accounts, can be accessed through the branch network.
A weekly budgeting account, which would enable account holders to ring fence a certain amount of money each week in order to ensure payment of direct debits, without risk of incurring expensive unauthorized overdraft fees, is among the innovative services proposed.
Mandelson also says the Post Office is well-positioned to be a major player in the mortgage market.
"I would like to see the Post Office at the forefront of the provision of good value mortgages across the UK," he says. "The Post Office has rapidly grown sales of its award-winning mortgages and is today announcing improved rates across its mortgages range."
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