15 thrift, rural banks tap BancNet services

MANILA, Philippines - A total of 15 thrift and rural banks have tapped the outsourcing services of BancNet for automated teller machines (ATM).

These banks are: BPI Globe BanKo, Wealth Bank, CARD Bank, Producers Bank, Finman Bank (BancNet direct connect), Enterprise Bank, Quezon City Rural Bank, Postal Bank, Tong Yang Bank, ISLA (Iloilo Savings and Loans Association) Bank, D’ Asian Hills, Central Equity Rural Bank, Valiant Bank, and Pacific Northstar.

“Likewise, six more banks are presently reviewing our offers,” Aristeo Zafra Jr., BancNet executive vice president and chief operating officer, said.

By outsourcing the ATM switching operations to experts, these banks can concentrate in their core business of lending and managing deposits. Yet banks and their depositors can still continue to benefit from the convenience of ATM services.

The ATM switch operator and the bank partner could share in the cost of establishing the latter’s ATM network, either through annual subscription fees or through transaction fee earnings.

Thrift and rural banks want to run their own ATM switches but could not afford the prohibitive costs of acquiring and operating one. But switch operators are encouraging banks to have its own switches to avoid overloading the present capabilities.

Return on investment could likewise be hastened by issuing co-branded ATM cards, and fielding of ATM units. Then there is also the inter-bank transaction charge as all banks are interconnected regardless of ATM switch operator.

“Cash loading is however the responsibility of the host bank,” the BancNet official pointed out.