Aceleda bank to invest US$3.5 million to upgrade IT systems
Aceleda bank to invest US$3.5 million to upgrade IT systems
A CELEDA Bank Lao Ltd. plans to invest US$3.5 million to upgrade its IT systems next year, so that customers are able to perform payments through mobile phone banking by using an advanced quick response system.
The bank will implement this system in accordance with ACELEDA Bank in Cambodia, Bank Chief Executive Officer and Managing Director, Mr Narin Phon told Vientiane Times recently.
Customers were previously able to use Aceleda ATM cards for money withdrawals and money deposits into their accounts but in the future they will also be able to perform money payments through mobile phone banking as well.
This system is being tested at present so we can run the system in the fourth quarter next year, Mr Narin said.
More importantly, ACELEDA Bank is currently running an ATM swap pool system which will link it to ATMs with other commercial banks, he said.
Mr Narin Phon said in 2016 the bank's business operations have been better than previous years in terms of both quantity and quality.
In 2015, the bank's non-performing loans (NPLs) accounted for 1.42 percent and less than 1 percent up until November this year.
The Bank of the Lao PDR controls NPL at not more than 3 percent but we managed 1.42 percent and less than 1.1 percent this year. The bank's portfolio at risk (PAR) is currently 2.3 percent and is expected to lower to 2 percent, Mr Narin reported.
ACELEDA Bank has continued to release loans for small and medium-d enterprises, and next year plans to release some US$130 million.
In 2016, the bank released about US$120 million, accounting for 92 percent of the plan.
Actually the bank was capable of releasing loans to meet the plan but was affected by a lack of Lao Kip currency, Mr Narin said.
However, ACELEDA Bank plans to cooperate with international organisations and international banks to release Lao Kip currency to the bank, he added.
Mr Narin explained that ACELEDA Bank doesn't have plans to expand its branches or services next year but it has future plans to upgrade four service units into quarters in Xayaboury, Luang Namtha, and Saravan.
After we have already upgraded our IT system, certainly we will expand more branches nationwide when customers come to use our banking system, Mr Narin said.
While the bank is upgrading its IT systems it also needs to upgrade banking management to attract more customers to use its banking products.
Above all, ACLEDA bank's business operation is good although it still needs to work better in line with the regulations defined by the Bank of Lao PDR, Mr Narin noted.
According to ACLEDA, the bank opened for business in July 2008 and was the first Cambodia-based commercial bank to operate in Laos.
Its shareholders include ACLEDA Bank Plc, the International Finance Corporation (operated by the World Bank Group) and Triodos-Doen and Triodos Fair Share Fund, The Netherlands' financial development company.
