PH Bank ATM Outsourcing now allowed

From BusinessWorld 2 November 2011

 
Banks may hire third parties for onsite ATMs’ servicing

BEGINNING THIS month, banks may sign up third parties to service the automated teller machines (ATMs) they’ve installed at their branches.

According to Circular 739, which the Bangko Sentral ng Pilipinas (BSP) posted on its web site yesterday, the policy-setting Monetary Board has decided to include the servicing of onsite ATMs as among those that banks may outsource to third party service providers.

This follows the decision in May to allow banks to contract third parties to service their offsite ATMs.

BSP Deputy Gov. Nestor A. Espenilla, Jr., in a text message, said the latest BSP initiative was intended “to allow banks… to improve the service levels of their ATMs and/or realize cost savings… via outsourcing.”

He pointed out, however, that the outsourcing of ATM servicing to third parties is “ultimately a business decision.”

Ismael R. Sandig, executive vice president and head of retail banking at the Rizal Commercial Banking Corp., in a text message said “this is a welcome development as this will allow banks to reduce their overhead costs.”

Banks that decide to outsource the upkeep of their onsite ATMs to third parties must ensure, however, that the servicing is carried out during business hours.

Service providers will be given limited access to the bank. When necessary, bank staff shall accompany the service provider when the latter services the ATMs,” according to Circular 739.

Banks must also install a closed-circuit television at the ATM area to record all occurrences around the machine.

Circular 739, dated October 26, 2011, will take effect 15 days after its publication in a newspaper.

BSP data showed the number of ATMs rose by 2.6% to 9,847 in June compared to March. Roughly 6 out of 10 machines were onsite ATMs.

Article location : http://www.bworldonline.com/content.php?Section=Finance&title=Banks may hire third parties for onsite ATMs’ servicing&id=40974

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