Full ATM interconnection starts next month

The country’s automated teller machines (ATMs) is reportedly set to be interconnected in June with the completion of testing between ExpressNet and BancNet.

MegaLink, the other ATM network, has long been interconnected with the two systems. The interconnection of the three systems will allow bank clients to use any ATM machine in any bank nationwide.

"It should be interconnected in June after months of testing," Aurelio Montinola III, ExpressNet chairman said. Montinola is also the president and chief operating officer of the Bank of the Philippine Islands (BPI).

BancNet chief operating officer Aris Zafra said in early May that they were in the final stretch of testing by member banks of BancNet and ExpressNet.

Zafra said that they were commited in completing the interconnection of the three ATM networks "sometime in the first half of 2006."

However, both officials failed to clarify issues of inter-bank transaction fees.

The ATM operators signed an interconnection agreement in August last year, promising to get the full system operational by the end of 2005.

The Bangko Sentral ng Pilipinas (BSP) had been pushing the ATM operators to merge operations with interconnection as the prelude. "It should result in more efficient and convenient banking for the public," the BSP said.

Roughly 6,000 ATMs, based mainly in the branches of the commercial banks with a handful of thrift banks and rural banks, will be interconnected.

There are over 14 million ATM cardholders, and some banks have started introducing ATMs that can be used overseas, or compatible with ATM machines in other countries.

The biggest network in terms of ATM machines is ExpressNet operating a total of 1,680 machines or roughly 34 percent of the total ATMs. BancNet is the largest ATM consortium with 25 bank members while MegaLink has 21 member banks.

MegaLink has the largest number of cardholders with 6.7 million, BancNet with 3.9 million, and ExpressNet with 3.5 million.

All expanded commercial banks (EKBs) and commercial banks (KBs) are ATM members including a large number thrift banks (TBs). Last year, a handful of rural banks have been initiated into the networks. – Ted Torres