BancNet, the country’s leading electronic banking network, last week launched its interconnection with Korea Financial, Telecommunication, and Clearings Institute (KFTC), its counterpart network in South Korea.
KFTC deputy president Shin Dong Won officiated at the inaugural transaction at a BPI ATM in Makati City using his Woori Bank ATM card to withdraw cash. With this interconnection, KFTC cardholders in the Philippines can withdraw cash from their Korean bank accounts through any BancNet ATM anywhere in the country. Together with KFTC International Business Team Head Jeong Hwan Shin and Global Business Manager Byoungmin Lee, BancNet officers led by Chairman Nestor V. Tan, President Ricardo R. Chua, Director Cezar Consing, Operations Committee chairman Manuel C. Tagaza, and Technical Committee chairman Daniel Yu witnessed the groundbreaking event.
The interconnection with KFTC is BancNet’s first reciprocal interconnection in Asia. It is currently interconnected with Union Pay of China; however, it is a one-way arrangement whereby Union Pay cardholders can use their ATM cards at BancNet ATMs and participating Point-of-Sale terminals. With KFTC, the interconnection is both ways: KFTC customers can use their ATM cards to check their balances and withdraw cash at BancNet ATMs and BancNet cardholders can do the same at KFTC ATMs in Korea. The two networks launched phase 1 (KFTC cards used at BancNet ATMs) last week.
BancNet also has a reciprocal interconnection agreement with NYCE in the U.S. Currently, BancNet ATM cardholders can transact at NYCE ATMs across the U.S.
In launching the partnership with KFTC, BancNet chairman Nestor V. Tan cited the so-called Korean wave in the Philippines, or the huge influx of Koreans into the country during the last decade. They have been the number one foreign tourists since 2010. Last year, about 1.2 million Koreans came to the Philippines. The number for the first quarter of this year shows a 20.4% growth from the same period in 2014. There are also over a hundred thousand Korean permanent residents in the country and they are major investors here.
Founded in 1986, KFTC is a payment settlement institution that establishes and manages interbank payment networks in Korea. Its members include the Bank of Korea, Korea Development Bank, Woori Bank, Hana Bank, Kookmin Bank, Korea Exchange Bank, Standard Chartered Korea and Citibank Korea.
BancNet has 115 members with over 13,000 ATMs nationwide.
KFTC president Shin Dong Won (center) poses with BancNet directors and officers after the successful ceremonial first transaction at a BPI ATM. He is flanked by (from left): BancNet general manager Aris Zafra, Operations Committee chairman Noel Tagaza, Board chairman Nestor Tan, KFTC global business manager Byoungmin Lee, International Business Team head Jeong Hwan Shin, BancNet president Ric Chua, director Cezar Consing and Technical Committee chairman Daniel Yu.