More banks to integrate with ATM network
More banks to integrate with ATM network
More than 10 banks in Laos will have linked up with the ATM pool system by the beginning of next year, according to a senior bank official.
Banks to be part of the ATM network include BCEL, LDB, APB, LVB, Joint Development Bank, ST Bank Co. Ltd, Indochina Bank Ltd and Banque Franco-Lao Ltd, a report revealed at a recent official ceremony for the ATM pool project.
Lao ATM Pool Switch (LAPS), a Chinese grant assistance project to boost more modern banking services in Laos, worth a total of US$9 million (more than 70 billion kip), was officially launched in Vientiane last Friday.
Under the cooperation between the governments of Laos and China, the Bank of the Lao PDR (BOL) and China Development Bank (CDB) are representing the governments to carry out the cooperative project.
Speaking at the launch ceremony, BOL Deputy Governor Mr Sonexay Sithphaxay said studies into the project and the gathering of information about the system development by CDB were carried out in 2011.
BOL and CDB inked a Memorandum of Understanding about their cooperation in setting up the project at the end of 2012 in Kunming, China.
“In 2013, CDB sent its experts to carry out a feasibility study in cooperation with BOL and signed two agreements on accepting the approval of the studies into the project and the project implementation in 2014,” he said.
He said the government of China also sent its experts to train Lao banking officials about technical management and other essential procedures relating to the ATM Pool system as well as grant scholarships to study Chinese language.
Currently, Banque pour le Commerce Exterieur Lao Public (BCEL) and Lao Development Bank (LDB) cover 70 percent of ATMs across the country.
Contract work on the ATM system development project is being undertaken by China UnionPay Company Limited.
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.
ATM card users of BCEL, Agriculture and Promotion Bank (APB), Lao-Viet Bank (LVB) and Lao Development Bank (LDB) could utilise each other's ATMs as the systems of all four banks were already integrated, according to a recent report by BOL.
The system reflects the strong ties between the banks that are together trying to make their services simpler, thereby increasing customer satis faction with domestic banks.
BCEL signed a Memorandum of Understanding with seven domestic banks regarding the development of an ATM pool system in November, 2012 aiming to provide convenience for ATM card users.
Deputy Prime Minister Dr Bounpone Bouttanavong, who is in charge of the macroeconomic affairs and services, Vice President of the Laos-China Cooperation Commission, Mr Vichit Xindavong, and Chinese Ambassador to Laos, Mr Guan Huabing, were also present at the ceremony.
In addition, the Executive Vice President at China Development Bank (CDB) Mr Wang Yongsheng and Vice Chairman of the Board and President at China UnionPay Company Limited Mr Shi Wenchao also took part in the launch ceremony.
