BancNet maps out expansion initiatives for ATM services

Automated teller machine (ATM) network operator BancNet is initiating a three-year program to enhance services to its 5.7 million cardholders in 39 member banks.

“The three-year program will include full linkages to the international gateways,” Angelito M. Villanueva, BancNet chairman and executive vice president of Metropolitan Bank and Trust Co. (Metrobank), said.

He revealed that BancNet has already broken ground in the international market through an alliance with the Department of Tourism, Visa International and financial institution ChinaWay. The arrangement allows Chinese tourists in the Philippines access to BancNet ATMs for financial transactions.

The program features three major projects: outsourcing initiatives, maximization of present channels and bringing ecommerce to the countryside.

Outsourcing initiatives include end-to-end technology application, propriety, cash-loading facilities and new or innovative ATM locations.

“Banks are moving towards outsourcing their ATM operations, thus allowing them to concentrate on their core businesses,” Villanueva said.

He added BancNet would also want to maximize technology not only for its ATM network.

 “Our investments in technology enhancements are enormous. For every P1 in income, 40 percent goes to research and development and other technology-related investments,” the BancNet official said.

It has started applications for the Internet, mobile banking, point-of-sales (POS), multi-channel payment gateways, e-channels with government, and an internet-based fund transfer (exclusive to member banks). It has likewise initiated talks for a tax payment gateway.

BancNet has also been aggressively pursuing links with rural banks and cooperatives, either direct or through Nationlink, an affiliate switch network provider.

“We are also looking to reach out to microlenders and microentrepreneurs,” Villanueva added.

BancNet has 39 member banks and subscribers, including Nationlink, and an affiliate ATM deployer (CTK). Its cardholders have access to 2,647 deployed ATMs.

It reported 529,378 daily average switched transactions with a record 909,508 switched transactions last Dec. 14, 2007, considered the highest single day switched transaction. Last year, it recorded a total of 153.3 million transactions.

Aside from ATMs, it operates 7,674 POS terminals through 1,685 merchant sites.

BancNet is looking forward to a 20-percent growth in net income this year. Net earnings last year was P20.8 million, from the 2006 net earnings of P20.7 million.

There are more than 7,400 ATMs and 21 million ATM cards nationwide. Aside from BancNet, the two other ATM providers are Megalink and ExpressNet.