Phongsavanh Bank to install ATMs


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Phongsavanh Bank plans to begin installing automatic teller machines throughout the country to provide more services to its customers by next month, after signing an ATM purchase contract with a Thai company.

The bank signed a contract in Bangkok last week with the Diebold and Postilion companies of Thailand to buy 100 Opteva ATMs.

The contract involves the implementation of the ATM-POS switching system, with a total value of about 22.8 billion kip (US$2.4 million), and all machines should be installed by the end of this year.

The bank will initially set up ATMs in Vientiane before moving on to various other provinces throughout the country.

The Chairman of the Phongsavanh Bank, Mr Od Phongsavanh, confirmed that cardholders would be able to withdraw cash from any branch, as well as make purchases at some shops and mini-marts.

The bank already has one ATM in operation, at its central building in Vientiane , and technicians are surveying other planned sites in the city.

Mr Od said that in the next month, the bank would install at least 20 ATMs in Vientiane , mainly in crowded areas such as malls and garment factories.

He said his bank would be placing an emphasis on ATM services because he wanted to reduce the amount of cash being used in the country's main cities. His vision was to one day make it possible to pay for anything with a card anywhere in the country, he said.

The bank has already issued ATM cards to its staff, and some business customers who pay company salaries via the bank, but Mr Od said the country would need more ATMs in place before the bank could begin promoting these services to the public.

The bank intends to have at least one branch in each of the country's provinces within a period of three years, before turning its attention to building an international presence with countries that can demonstrate strong trading ties with Laos .

The bank is also pressing forward to open more branches in Vientiane , Savannakhet, Pakxe and Luang Prabang before the end of this year.

Phongsavanh bank opened its doors to the public in March of 2007. It has already created an international network of correspondent banks, including the US-based Wachovia bank and American Express, and in June became a member of the Swift transfer system, allowing it to make and receive payments from around the world.

The bank's main focus is on the retail market and lending to local, under-funded small and medium enterprises.

Mr Od also plans to go into partnership with a Thai bank in the future to improve local services and make banking easier for customers in both countries, especially when it comes to transferring money electronically.

By Soudalath Phonpachith
Vientianetimes