Lao bank card to be cheapest to use abroad
Lao bank card to be cheapest to use abroad
Banque pour le Commerce Exterieur Lao Public (BCEL) expects to be charging the lowest fee of any card when using ATM services in other Asean countries through its service integration project with their banks when this is established in the near future.
“Once the project is launched, the clients will have lower service charges when they withdraw cash or use other ATM services outside Laos but within Asean,” BCEL Deputy Managing Director, Mr Nanthalath Keopaseuth, said yesterday.
“They may even find the services are free of charge,” he added.
Nanthalath gave as an example that, at the moment, when a customer uses bank card services such as UnionPay or VISA in Thailand, they have to pay fees to their Lao bank, the Thai bank and a third party who owns and operates the system.
A BCEL official said that customers now have to pay to BCEL about two or three percent when they use UnionPay or VISA card services in a neighbouring country.
They also have to pay a fee to the bank in that country, “however we do not know how much the banks there charge,” the official said.
“So our ATM integration project will establish cooperation with only the local bank in the Asean country and there is no third party,” Nanthalath said.
“Our service system is ready to start operations and we have talked with some of the banks in neighbouring countries about cooperation on the project.”
The Bank of the Lao PDR (BOL) Deputy Governor, Mr Sonexay Sitphaxay, said that the BOL is pleased to support and promote the project, knowing that integration is part of the development plan of the banking sector for the AEC when it comes into being at the end of this year.
The ATM integration project is a step towards regional integration and global linkages with regard to banking sector service systems.
All of the service product improvements and service system developments are directed towards the attainment of international standards.
ATM integration will be of benefit to both banks and customers. It will help to grow the number of ATM users and get more and more people to use the services offered by the different departments within the banking sector.
It will effectively create a centralised ATM network, cutting unnecessary costs and saving customers' time as they will no longer have to seek out the ATM of a particular bank.
It will also help to maintain an appropriate level of cash flow in keeping with real needs. It reflects the strong ties between the banks that are together trying to make their services simpler for customers.
Now ATM card users of BCEL, Lao Viet Bank (LVB), Agricultural Promotion Bank (APB), Lao Development Bank (LDB), Joint Development Bank (JDB) and ST Bank (STB) can use the services of any of their respective ATMs as the systems of all six banks are integrated.
BCEL signed a memorandum of understanding with seven domestic banks regarding the development of an ATM pool system on November 23, 2012.
Banks to be part of the ATM network include BCEL, LDB, APB, LVB, JDB, STB, Indochina Bank Ltd and Banque Franco-Lao Ltd.
BCEL will continue the integration project with other banks that signed the agreement. Once it reaches completion, the integration system will cover more than 90 percent of the ATM system in the country.
The continuation of the ATM integration project to those commercial banks that have not yet joined, would be especially good if all the banks in Laos can take part.
