Lao, Thai banks extend cross-border services
Lao, Thai banks extend cross-border services
A cross border ATM link project was officially signed and launched on Friday between Phongsavanh Bank, Bangkok Bank Public Company Ltd and Processing Center Company Limited (PCC).
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The agreement was inked after Phongsavanh Bank was given approval by the Bank of the Lao PDR (BOL) in November to implement the cross border ATM link between Phongsavanh and Bangkok banks with PCC (Thailand) as the switching provider for the project.
“This project is divided into two phases. In the first phase, Phongsavanh Bank ATM cards can be used at Bangkok Bank's ATMs for two transaction functions - cash withdrawal and balance enquiry,” Phongsavanh Bank Managing Director Ms Sengdao Bouphakonekham said.
“The second phase will allow Bangkok Bank ATM cards to be used at Phongsavanh Bank's ATM machines,” Ms Sengdao said at the signing and launching ceremony.
The ceremony was also attended by Vientiane Deputy Mayor Mr Somvanhdy Nathavong, Thai Ambassador to Laos Mr Vitavas Srivihok and officials from the BOL, ministries and international organisations.
The Phongsavanh and Bangkok banks signed a Memorandum of Understanding in August 2008 for the enhancement of business and technical cooperation with the support of the Bank of the Lao PDR and Bank of Thailand.
The cross border ATM link project comprises three parties: Phongsavanh Bank as an issuer, Bangkok Bank as an acquirer and PCC as a transaction switching provider.
Bangkok Bank's Senior Executive Vice President, Ms Suteera Sripaibulya, said Laos and Thailand are close trading partners. Last year, over 1.2 million Lao people and foreigners working in Laos crossed the border into Thailand to buy commodities or other services, to a total trade value of over 31.6 trillion kip (120 billion Thai baht).
“The recent opening of the Thai-Laos Friendship Mekong River Bridge (between Nakhon Phanom province and Khammuan province) is expected to boost trade even more,” Ms Suteera said.
The project will be of tremendous benefit to customers crossing the border for trade, and to those studying or working in Thailand, as they will be able to withdraw cash from any Bangkok Bank ATM for their daily expenses during their stay there.
PCC Managing Director Ms Bussaba Pibulchol said “Cardholder customers of Phongsavanh Bank can obtain service at Bangkok Bank's ATMs, with over 7,700 ATMs in Thailand. PCC is to be assigned by both banks to implement and operate the cross border switching service between the two banks.”
A press release noted that the venture will help realise the project on “Lao Kip Banknote Sale along the border with Bangkok Bank” and to lay the foundations for future cooperation between the two banks.
Cooperation will not only enable the banks to develop their branding, build up and internationalise their reputation to the public, but also to seize the market share in order to raise their turnover on bank card products and foreign exchange, especially on cross-border settlements, alongside the two countries' business growth and development.
vientiane times
