ATM outsourcing specialist courts foreign investor

MANILA, Philippines - ATM provider Encash is in talks with a foreign investor that will boost its capability to make cash within reach in the countryside by scattering automated teller machines (ATMs) nationwide.

“I can not reveal the name as we are still in serious talks,” Eric Severino, chief executive officer of Encash, said.

Last year, Encash held exploratory discussions with the likes of Microvest (USA), Planet Finance (France), Responsibility (Switzerland), Developing World Markets, SNS, and Oikocredit. Another option is the International Finance Corp. (IFC), the private investment arm of the World Bank.

He refused to indicate if the prospective partner was in the original line-up.

Severino however admitted that it is still targeting deploying a total 300 ATM units by the end of 2011. It presently manages 273 ATM units partnered with 139 partners, which include 105 rural banks, cooperatives and other microfinance institutions (MFIs).

From P5-billion transactions at the start of the fourth quarter of 2010, it reached P8.1 billion at the end of 2010.

Encash partners need not acquire the ATM machines but the deployed units charge a transaction fee of P88, compared to the familiar P8 to P12 per transaction of units deployed by MegaLink, ExpressNet and BancNet.

“The partners basically will manage the cash flow in each unit,” the Encash chief executive said. Encash is a member of the MegaLink network.

The deployment of ATMs in far-flung areas is still a boon for the countryside population. Some individuals in Samar revealed that they spend up to P500 for transportation alone just to get to the nearest bank.

Encash specializes in outsourcing ATM services and its accompanying infrastructure. Its main targets are thrift and rural banks, cooperative banks and cooperatives.