ENCASH launches new business

MANILA, Philippines - Electronic Network Cash Tellers, Inc. (ENCASH) is tapping a new revenue stream even as it continues to aggressively expand its automated teller machine (ATM)-deployment business. It is launching SAVANT, a software it developed in-house for rural banks. Eric J. Severino, ENCASH president, told reporters Tuesday SAVANT will improve banks’ efficiency as it will computerize the processing of deposits, withdrawals and loans, among others, and generate reports hewing to Philippine Financial Reporting Standards. Big rural banks that maintain ATMs at their branches and issue ATM cards will particularly benefit, he added, as it will allow real-time account updating. A bank client who deposits over-the-counter, for instance, can check how much his savings have grown by using his bank’s ATM at any of its branches. Most rural banks, at present, do not own ATMS nor issue ATM cards. But four of ENCASH’s partner-banks, which maintain ENCASH ATMs at their branches and plan to issue ATM cards, have begun testing SAVANT. The four are First Valley Bank, GM Bank, Bangko Kabayan and Bank of Florida. Mr. Severino said the complete software package should be ready by the first quarter of next year. Rural banks that want to use SAVANT will need to to pay ENCASH P7.7 million, broken down into P5.5 million for licensing and P2.2 million for implementation. SAVANT, Mr. Severino, took a little over two years to develop. "We saw an opportunity so we got into it," he said. ENCASH, which began operating in 2005, is primarily engaged in the deployment of ATMs to rural banks and business establishments in areas where there are no commercial banks, and hence, no ATMs. Since ENCASH is a member of Megalink, commercial bank clients need not travel far to check their accounts or withdraw cash. Rural banks, on the other hand, can use the ENCASH ATMs to brief users about the ATM cards they plan to issue in the future. With SAVANT, ENCASH’s business will shape up to be "one-half ATMs and one-half SAVANT," Mr. Severino said. ENCASH has deployed a total of 102 ATMs, up from just five in December 2007, to 38 rural banks and two non-banks nationwide. Withdrawals have risen from around 3,800 in January to around 83,000 in October. - BusinessWorld