Borders no barrier as payment system goes online
Borders no barrier as payment system goes online
Sending money to where it is required will be easier with two banks in Laos and Vietnam launching a cross-border payment system (CBPS) to facilitate money transfers between the neighbouring countries.
Phongsavanh Bank Limited of Laos and Vietnam Bank for Agriculture and Rural Development (Agribank) officially launched the system yesterday in Vientiane.
Both banks have installed and successfully connected to the CBPS system.
Training on the use of the system was conducted for Phongsavanh Bank staff from November 3-4.
Phongsavanh Bank Managing Director Ms Sengdao Bouphakonekha said the system would promote electronic payments in banks' services, particularly for cross border payments.
The system aims to facilitate faster service provision for trade and business operations between Lao and Vietnamese traders and businesspeople.
CBPS is a web-based application developed by Agribank, which is used to send and receive transactions between the bank and its overseas partners.
It has been designed with ease-of-use in mind, supporting languages including Lao, Vietnamese and English.
Ms Sengdao said customers and businesses were also intensifying efforts to cut operating costs and increase efficiency to improve long-term competiveness and sustainability.
More efficient electronic payments methods are able to facilitate business and work to their advantage, she said.
“We shall take the opportunity to reorient toward use of electronic means to replace paper-based services a nd continuously seek to educate and familiarise consumers in the use electronic transfers and other technology linking our two banks services to achieve competitiveness and differentiation in our cross-border services,” she said.
Member of the Board of Directors of Agribank, Mr Nguyen Van Minh, said that the institution was the first in Vietnam conducting cross-border payments with Laos in 2008.
Phongsavanh Bank is the first partner to date.
The c ooperation efforts aim to bring both banks' customers a safe and effective border payment service which is mutually profitable, contributing to economic stability and prosperity in the Vietnam-Laos border area.
“However, as you may know, th e payment between the two banks has been done manually so far, documents must be delivered on a day to day basis, resulting in a delayed payment and document loss possibility,” Mr Nguyen said.
“Therefore, the mutual payment potential has not been fully leveraged. This has urged Agribank to invest in the development of CBPS solution.”
The application of the CBPS will facilitate five-minute money transfer, tracing for convenience and easy connection to all branches of both banks in order to better serve customer needs.
Relations between the two banks will develop to a new level with increasing transaction volume and customer base.
With a view to increasing cooperative ventures, various agreements have been mutually agreed upon.
These include technical and business cooperation, money transfers for students, staff training and finding solutions to ensure effective and efficient implementation.
vientiane times
