Financial networking firms to merge

Financial networking firms to merge

Smartlink Card Joint Stock Co will soon merge into the Viet Nam National Financial Switching Joint Stock Co (Banknetvn) in this year in what will be a major step towards the unification of the country's financial networking alliances, it has been reported.

Several online newspapers said that a memorandum of understanding for the merger was to be signed yesterday, but a Banknetvn's switchboard clerk confirmed with the Viet Nam News that no such event took place.

A source from the State Bank of Viet Nam said that auditing and valuation procedures for the merger between two largest transaction processing systems were currently being carried out, adding that the move would fully conform with the Enterprise Law.

Reports claim one other system, VNBC, will also merge into Banknetvn within the first half of next year.

"The State Bank now holds a 25 per cent stake at Banknetvn and it will maintain this holding ratio after the mergers," he said. "The role of the central bank is needed as the cashless and card payment markets are very strong."

According to the source, three alliances' transaction processing networks were already linked from last year, and this now allows major banks which represent 90 per cent of the card payment service market to stay technically connected.

ATM card holders can now use their cards to pay money at point-of-sale machines no matter who they bank with.

Banknetvn general director Ngo Ngoc Dong was reported saying the company is expanding links with foreign financial switching systems, including China's UnionPay, Russia's UC, South Korea's KFTC, Thailand's ITMX, and Malaysia's MEPS.

This would help promote the usability of domestically issued debit cards in foreign countries as well as foreign cards in Viet Nam, he said.

vietnamnews