PAYMENT SYSTEMS : Local banks to benefit from ITMX

PAYMENT SYSTEMS : Local banks to benefit from ITMX.

PARISTA YUTHAMANOP

Local banks will become more efficient with the launch of the national Interbank Transaction Management and Exchange (ITMX) system in the second half of this year, according to Shailesh Kotwal, president of eFunds International. The Bank of Thailand initiated ITMX in 2005 to be the central interbank payment system.

Its operations will speed up interbank transactions, including cheque settlement, debits, funds transfers and ATM networking with regional countries.

For example, with the new system, an employee will no longer have to open an account with the same bank as his or her employer in order to receive salary payments.

''The system will operate as the national central switch for e-payment settlement. This is a big step for Thailand as banks will share the same environment as opposed to being in their own environment, which is more complicated. It is unique in the region,'' Mr Kotwal said.

EFunds, an Arizona-based e-payment solution provider, won the bidding for ITMX in the middle of 2006 to provide the system's software, together with IBM for hardware solutions and Infomax for data management.

Mr Kotwal said the ITMX system would facilitate fraud detection, as the working processes among banks would be standardised.

He said ITMX would create an even playing field for smaller banks, as the system would allow them to run efficient payment systems.

''Small banks will have the ability to deliver products based on the system. As banks move aggressively to gain market share, the system will help them to be proactive. The system is flexible and scalable,'' Mr Kotwal said.

He said a move toward a cashless system would be driven by market competition and growing consumer sophistication.

''Time is more expensive than anything else. So it is in the vested interests of commercial banks to invest in electronic payment systems. The industry will be driven by cost and convenience.''

Mr Kotwal said micro-payment and mobile payment were among the latest global electronic-payment trends, while online payment was more established.

He said the regional electronic-payment market was expected to grow rapidly as its usage volume stood at less than 10% now in most countries.

Mr Kotwal said eFunds was a market leader in e-payment services, with business links to more than 80 countries. Its software supports 30 billion transactions per year, while its data centre process eight billion.

Teera Aphaiwongse, the national ITMX chairman, said it would transfer operations including interbank bulk payment, liquidity management and ATM services from commercial banks within this year.

Since ITMX was hosted by local banks, it could use their facilities to help save operating costs, Mr Teera added.

Bangkok Post
Sunday January 14, 2007