All ATM networks linked up

this story was taken from www.inq7money.net

URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=06&dd=21&file=5





All ATM networks linked up
Posted: 2:07 AM | Jun. 21, 2006
Doris C. Dumlao
Inquirer

BANK depositors can now access their accounts at any automated teller machine (ATM) across the country, whether their bank belongs to the BancNet, ExpressNet or Megalink network.

The last leg of the three-way interconnection went live Tuesday as BancNet and ExpressNet officially hooked up, a year after they announced an agreement to link their more than 6,000 ATMs.

Before Tuesday, BancNet and ExpressNet were connected with Megalink separately.

The three-way linkage finally came 16 years after ATM banking was introduced in the country.

"The effort is consistent with BancNet's advocacy for a shared network infrastructure built around the principle of resource sharing and economies of scale," said BancNet chairman Angelito Villanueva, a director of Metropolitan Bank and Trust Co., at the launch of the BancNet-ExpressNet interconnection Tuesday.

"This convergence upholds both networks' commitment to excellence and quality," added Aurelio Montinola III, president of Bank of the Philippine Islands and chairman of ExpressNet.

Montinola said the partnership would encourage the use of innovative banking channels and thus lead the country "toward more technology-savvy banking methods."

Governor Amando Tetangco of the central bank, Bangko Sentral ng Pilipinas (BSP), who graced the launch of the BancNet-ExpressNet interconnection at the BSP, said this initiative would set a single electronic platform for a more convenient and cost-efficient delivery of financial services nationwide.

"This sharing of network infrastructure is a strategic move that is expected to reduce transaction costs which, in turn, would ultimately translate to lower service fees for all ATM-related transactions of the over 10 million ATM cardholders," Tetangco said.

It was the BSP that called for the three-way union among BancNet, ExpressNet and Megalink 15 months ago, under Tetangco's predecessor, Rafael Buenaventura.

BancNet linked up with Megalink in 1995.Megalink and ExpressNet interconnected two or three years later.

Tetangco told the networks: "But while we would want you to seize the opportunities, we also want industry participants to be mindful of the inherent risks."

"Accordingly, we shall be crafting relevant regulations that would ensure that risks inherent in electronic banking are adequately managed and depositors protected at all time," he said.

Tetangco said appropriate safeguards and mechanisms for managing and controlling risks could not be overemphasized with the growing sophistication of banking with new technologies.

"Just recently, we issued a memo advising banks to exercise vigilance in their operations and to educate the public against fraudulent practices involving ATM transactions," he said. "Information is vital if we are to protect the interests of the banking public and maintain their trust." With INQ7.net