The Government has approved a joint venture agreement between An Post and an international financial services company to allow the Post Office network to offer retail banking services.
Credit Cards, mortgages and Internet banking will be available through An Post from early next year through an agreement with Fortis, one of the largest financial institutions in Europe.
An Post says the initiative could create up to 500 jobs over the next five years.
An extensive programme of training, refurbishment branding and promotion will take place in the coming months.
The move is subject to approval from the financial regulator.
Minister for Communications Noel Dempsey said the intitiative was approved as part of An Post's long-term strategy and would offer a real opportunity to develop the network of post offices around the country.
An Post said both rural and urban customers would be able to benefit from the new range of services through its well established network of outlets.
And Post Chief Executive Donal Connell said the improved income from the venture would also put An Post on a secure footing and strengthen the social fabric of rural communities.
