Single ATM network eyed before end 2015

CEBU, Philippines- The Philippines' automated teller machine (ATM) network is expected to be transformed into a single switch network by the end of 2015, a top official of the Bankers Association of the Philippines (BAP) said.

BAP President Lorenzo V. Tan said a single ATM network is eyed by year's end, noting that this is the first step towards a more efficient and inclusive retail payments system in the country. Tan is also the president and CEO of Rizal Commercial Banking Corp. (RCBC).

It was in January this year when an agreement to merge the country's two largest ATM networks -- BancNet and Megalink -- was signed.

BancNet is the largest ATM consortium in the Philippines. On the other hand Megalink, although has fewer members but has a large combined branch network.

The consolidation will entail Megalink banks to join the BancNet network. BancNet will be the surviving entity.

Tan said ATM transaction fees may be lower in the future caused by the consolidation. Presently, inter-ATM and interbank transaction charges range from P5 to P15.

What is also significant, according to Tan, is the expected cut in unit costs of banks.

The Philippine banking system currently operates a total of 16,319 ATMs as of June this year, data from BSP showed. 

Likewise, Tan said the merger will hopefully make the implementation of a single e-payment system, named as e-Peso platform, easier.

Tan explained the e-Peso, a joint initiative of BAP, Bangko Sentral ng Pilipinas (BSP) and the US Agency for International Development (USAID), seeks to minimize the use of physical cash.

USAID had noted in a report that 98% of all retail transactions in the country were still done using hard cash. 

Earlier, BSP Deputy Governor Nestor Espenilla Jr. had said promoting the use of e-money should be a priority, considering that majority of financial transactions in the country are still cash-based.

BSP is now working on establishing the National Retail Payments System (NRPS) to promote electronic payments.

The use of e-money is essential in improving financial inclusion as well as efficiency in the financial system, Espenilla had said in a media briefing in Cebu early this month.

NRPS paved the way for the ATM network consolidation.  (FREEMAN)