Why Royal Mail’s delivery cuts demand urgent action from legal, financial, and insurance providers
From August 2025, Royal Mail will stop delivering second-class post on Saturdays—reducing service to just three days per week.
This change, approved by Ofcom as part of broader postal reform, might sound like an operational footnote. But for regulated industries—where timing, auditability, and compliance are non-negotiable—it introduces new and pressing risks.
If your client communications still rely on physical mail, your compliance posture may already be at risk.
What’s Changing in 2025
Royal Mail’s revised delivery model includes:
- Elimination of Saturday second-class delivery
- Reduced next-day first-class delivery target from 93% to 90%
- Second-class post now has a three-day target, down from two, with 95% reliability
For regulated firms—particularly in legal services, wealth and asset management, banking, insurance, and pensions—these changes introduce real operational consequences. Many of these industries depend on postal delivery for issuing contractual notices, client updates, and regulatory communications. With delivery times shifting and reliability declining, the impact on service levels and compliance cannot be ignored.
The 3 Most Pressing Risks Regulated Firms Face
-
Delays in Critical Communications
What once took two days to deliver could now take up to four. For firms sending regulatory documents, updates, or contractual letters by second-class post, the removal of Saturday delivery creates a timing gap that could result in late delivery, missed deadlines, or SLA breaches.
-
Compromised SLA and Compliance Targets
Many regulatory communications are bound to strict service level agreements and statutory response windows. The reduced reliability of Royal Mail’s services puts these obligations at risk—potentially leading to penalties, reputational harm, or increased scrutiny.
-
Rising Operational Costs
Alongside slower delivery, Royal Mail’s upcoming price increases will raise the cost of physical communication. This compounds the problem: you’re paying more for a service that is less dependable—adding friction and cost to every client interaction.
A Digital-First Alternative: How Legado Helps
Instead of reacting to every postal reform, forward-thinking firms are adopting digital delivery models that offer compliance, speed, and security.
Legado enables regulated firms to:
- Replace post with secure digital delivery of formal communications
- Maintain full audit trails and access control to meet regulatory standards
- Automate communication workflows with eSignatures, real-time notifications, and document requests
- Reduce dependency on physical mailrooms through digitised distribution
- Centralise documents in a secure, client-facing digital vault
Firms using Legado are streamlining their communication processes, reducing operational risk, and enhancing client satisfaction—while staying fully aligned with FCA, PRA, and SRA requirements.
Act Now: Don’t Let Postal Reform Undermine Your Compliance
Royal Mail is changing. Your clients already expect more responsive, digital-first communication. This is the time to reassess your operational risks and modernise how you manage critical communication.
Book a free 15-minute consultation to:
- Review your current communication workflow and risks
- Explore secure, compliant digital alternatives
- Receive a tailored roadmap for transitioning away from physical post
Schedule your consultation with Legado here.
Stay Compliant. Stay Efficient. Stay Ahead.
With communication standards evolving, regulated firms can no longer afford to rely on traditional mail. Legado helps you stay compliant, reduce costs, and exceed client expectations—all in one secure platform.
Learn more at joinlegado.com