Major banks to double number of ATMs this year

Major banks to double number of ATMs this year.

The larger commercial banks plan to double their number of automatic teller machines (ATMs) this year, to provide facilities for expanding electronic bill-payment transactions.

Bangkok Bank plans to lift its ATM number to about 5,000-6,000 this year from, its existing 3,600, said executive vice president Chooporn Chantaravichai.

Bill-payment activities through electronic banking channels are on the rise, particularly via ATM. The electronic payment method provides customers with greater convenience and helps banks lower operating costs.

With double the number of ATMs this year, the bank expects bill payments through the machines to rise significantly and boost its fee-based income. The bank collects 30-40 per cent of its bill-payment fee income from ATM bill-payment services. This is expected to increase to 70-80 per cent this year. "Once the number of transaction increases, customers could be subject to lower charges per transaction when paying bills," she added.

Kasikornbank is to add 600 ATMs to its existing 3,100, which will boost the bank's bill-payment business and fee income.

Last year, the bank's bill-payment volume was about Bt40 billion, contributing fee income of Bt240 million. The bank recorded total fee income from retail banking of Bt6 billion, up 20 per cent year on year.

This year, the country's fourth-largest bank plans for its fee income from retail operations to grow 30 per cent from last year.

Bank of Ayudhya this year plans to install more than 1,000 ATMs nationwide, some of them replacing existing ones. The new ATMs will be equipped with more advanced technology that will be able to serve chip cards.

Siam Commercial Bank has targeted its fee income from its cash-management business to grow 20 per cent this year, with total volume in excess of Bt1 billion. The bank plans to add about another 1,000 ATMs this year to its 3,000 existing machines.

Yesterday, Bangkok Bank, Siam Commercial Bank, Kasikornbank, Bank of Ayudhya, BankThai and United Overseas Bank (Thai) joined with Total Access Communication (DTAC) to introduce Sabai Pay, providing mobile-phone bill-payment services to DTAC post-paid account holders.

Somruedi Banchongduang The Nation

The Nation
Thursday January 11, 2007