UPDATE 1-UK Post Office creates Money brand to bolster growth aims

* To bring all services under Post Office Money brand

* Seeks to be major financial services provider by 2020

* Britain wants challengers to take on biggest banks (Adds details, quotes from director)

By Matt Scuffham

LONDON, Jan 26 (Reuters) - Britain's Post Office said itwould bring all its financial services under one brand as partof plans to become one of the UK's biggest financial servicesproviders by 2020, laying down a challenge to the country'sincumbent banks.

The Post Office, which partners with Bank of Ireland to offer banking services, said it would launch the"Post Office Money" brand which customers could access in its11,500 outlets or online.

The move is intended to present the Post Office as achallenger to Britain's biggest banks, which have been hit byscandals ranging from the mis-selling of loan insurance to theattempted rigging of benchmark interest rates.

Lawmakers and regulators are keen for challengers to emergeto break the dominance of Britain's "Big Four" lenders, LloydsBanking Group, Royal Bank of Scotland, Barclays and HSBC, which control more than threequarters of personal current accounts and make nine out of 10loans to small businesses.

"Post Office Money is committed to providing customers withan offering that is fair, accessible and helps them manage theirfinancial needs," said Nick Kennett, director, financialservices, at Post Office Money.

Other new entrants include Metro Bank, which said last weekit had increased lending by 112 percent in 2014.

The Post Office began offering personal current accounts in2013 in an attempt to broaden its customer base. It already has3 million customers for its banking and insurance businesses and9 million using its foreign currency service. Post Office Moneywill also offer home loans, savings products and travelinsurance.

Post Office Money is looking to take advantage of Britain'sbiggest banks closing branches, which has been criticised asleaving some consumers without easy access to a local branch.

It will offer customers extended opening hours and Sundayopening at 2,500 branches.

Separately on Monday, Spanish bank Santander saidit had reached an agreement with the Post Office for its Britishcustomers to bank at the Post Office's outlets.

Santander said the arrangement was part of a widerinvestment programme that has involved it refurbishing 40percent of its branches and investing in technology. (Editing by Steve Slater and David Holmes)