ATM pool system expanded, customers to benefit
ATM pool system expanded, customers to benefit
Two major banks in Laos, the Banque pour le Commerce Exterieur Lao Public (BCEL) and Lao Development Bank (LDB), launched an ATM pool system on Monday allowing customers of each bank to use the other's machines.
The two sectors aim at upgrading their systems and providing more convenience to their customers, many of whom are now ATM card users.
“We also plan to launch the system with Joint Development Bank (JDB) next month, following which we will work with ST Bank,” a BCEL official confirmed.
The Bank of the Lao PDR (BOL)'s Deputy Governor, Mr Khamvong Thipphavong, attended the official launch, along with officials from various sectors and the owners of the banks.
The ATM integration certifies that LDB has upgraded its core banking system and electronic card services, according to a handout.
The move will provide clients with more convenient services, allow the banks to retain more cash and allow customers to access it when needed, attracting more card use.
The pool system will effectively create a centralised ATM network, cutting unnecessary costs and saving time for customers as they will no longer have to seek out the ATM of a particular bank.
The system will also help maintain an appropriate level of cash flow in keeping with real needs.
Recently BCEL launched a similar ATM pool agreement with Lao Viet Bank (LVB) and the Agricultural Promotion Bank (APB).
Now ATM card users of BCEL, APB, LVB and LDB can use the services of any of their respective ATMs as the systems of all three banks are integrated, the handout read.
The system reflects the strong ties between the banks that are together trying to make their services simpler for customers, thereby increasing satisfaction with domestic banks.
This integration marks another significant stage in the development of commercial banks in Laos.
The network integration project is a service preparation readying the Lao banking sector for the Asean Economic Community (AEC) which comes into being in 2015.
BCEL signed a memorandum of understanding with seven domestic banks regarding the development of an ATM pool system on November 23, 2012.
The ultimate aim is to provide convenience to ATM card users and engender pride in Lao banks.
Many bank customers use ATM cards for their convenience but the number of ATMs is inadequate to meet demand.
The banks see that in some significant business areas and communities clients have to queue up to access ATMs.
ATM integration should be able to remove the delays and customers may be prepared to pay a small fee to get quick service.
The banks believe the system will not only provide more options for clients but also provide incentives to participating banks.
Currently the BOL is urging banks to speed up progress on the ATM integration project, which was agreed to by a number of financial institutions in 2012.
Under the 2012 memorandum, major banks' customers would be able to use other banks' ATMs for a variety of services.
Banks to be part of the ATM network include BCEL, LDB, APB, LVB, JDB, ST Bank Co. Ltd, Indochina Bank Ltd and Banque Franco-Lao Ltd.
The wider the system the higher customer satisfaction would be. This will also boost the banking business and increase the competitiveness of the domestic banks.
vientiane times
