ATM network linkup faces delays

The three-way interconnection among the automated teller machine (ATM) systems of the country’s major banks is facing operational delays.

In August last year, key officials of BancNet, ExpressNet and Megalink signed the interconnection accord that would allow an ATM cardholder the convenience to transact in any ATM machine.

At that time, the ATM networks’ official said they expected full interconnection of the three networks "sometime in the first half of 2006."

BancNet chief operating officer Aris Zafra said, however, that they are now in the final stages of testing by member banks. "We want to be sure that there are no kinks. We would like to be sure that when we launch the complete interconnections, it is not half-baked."

The interconnection involves BancNet and ExpressNet since Megalink already serves as the "common denominator," between the two networks. Megalink is the most "common or friendly" system, that is, a BancNet cardholder can transact through Megalink machines, and vice versa. In the same light, ExpressNet cardholders can transact through Megalink machines, and vice versa.

On the other hand, BancNet and ExpressNet cardholders still could not make direct transactions.

BancNet president Ricardo R. Chua said he does not expect transaction fees to increase with the recent interconnection. "Convenience for the public is the immediate result of the interconnection."

The Bangko Sentral ng Pilipinas (BSP) has been urging the three operators to consider merging operations. The three operators however had a different view on the merger issue.

BancNet said the fluid interconnection of the three operators is the first condition the regulators wanted to achieve.

In an earlier interview, ExpressNet chairman Aurelio R. Montinola said that instead of a merger, the operators would rather invest their money in new products and services using the present ATM platform as well as invest in more ATM machines.

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 through the three operators.

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 is Expressnet operating a total of 1,680 machines or roughly 34 percent of 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 and development banks (TBs). Last year, rural banks (RBs) have started to join the networks.