BAP launches cash center

Four foreign groups have separately offered to be the strategic partner of the Bankers Association of the Philippines (BAP) in the latter’s cash center project designed to bring down commercial bank’s interme-diation costs.

BAP executive director Leonilo Coronel said that BAP was evaluating the bids of four groups featuring the world’s leading security and technology providers and should come up with a decision soon.

The groups that submitted bids are De La Rue jointly with Currency Systems International Inc., Bricks Inc., Group 4 Securities, and Giesecke & Devrient.

The winning bids will help BAP come up with a feasibility study and plan on how to establish the cash center, which could as much as have total intermediation costs and thus, lower interest charged by banks.

Coronel said that the partnership bids ranged from build-operate-transfer project to joint venture to turn key solutions. The cash center would be located in Quezon City beside the Bangko Sentral ng Pilipinas (BSP) printing plant. The BAP and the BSP already have an agreement in principle on the establishment of the cash center.

"We have determined that if there is a hub or infrastructure, there is a lot of opportunities to make banks more efficient in handling cash," Coronel said. "What we are doing now is choosing a partner we think will provide the best solution."

De La Rue is the world’s leading provider of cash to secure transactions and the largest commercial security printer and paper maker. The company is also a leading provider of cash handling equipment and solutions to banks and retailers as well as a range of identity systems to governments worldwide.

Currency Systems is the first and only technology provider in the world dedicated solely to high-performance currency processing systems and advanced solutions in high-speed and medium-speed (desktop) currency applications. It likewise services central and commercial banks, currency deposit receivers, armored car companies, bank note printers, casinos, and other establishments that require automated handling of large amounts of currency or other negotiable documents.

Brink’s Inc. provides the international business community with air courier services, currency services, coin wrapping, and automated teller machine (ATM) services.

Group 4 Securities is a large Czech stock company owned by a member of the Group 4 Falck, a group of companies that comprise one of the biggest security organizations in the world. Group 4 Securities provides for the physical security and protection of customer sites and offers transportation of cash and valuables, cash processing services, installation and maintenance of technical security systems, intervention after alarm services, VIP protection, and cleaning.