BANGKOK -- Pramote Chalamporn, first senior vice-president of Thai Farmers Bank, said that commercial banks would probably form joint ventures in EFT support services in 2002, according to a report in the Bangkok Post.
However, the Bank of Thailand would need to amend its regulations to allow the ventures. Currently, companies providing support services are allowed only to serve their respective parent banks and subsidiaries.
The most likely candidate for joint ventures is the cash-and-carry business, with changes currently being discussed by the Thai Bankers' Association.
Several banks including Thai Farmers Bank, Krung Thai Bank and Siam Commercial Bank, have established subsidiaries providing them with cash transport. However, a source at the bankers' association said that the company holding the largest market share in the cash-and-carry business was Securicor (Thailand) Co, a subsidiary of Jardine Securicor Group in Hong Kong.
Securicor provides cash delivery services to other banks, especially Bangkok Bank, which do not have subsidiaries to handle the business.
Banks are currently in discussion to consolidate payment approval services for the country's point-of-sale network.
"The major issue is the monopoly that Bangkok Bank and Thai Farmers Bank have since they own more than 50 percent of the terminals in the country," said Pramote of Thai Farmers Bank. "As a result, more discussion is needed."
The two large banks own almost 30,000 terminals from a total of just over 50,000.
So far, co-operation among banks in using the terminals has been unofficial. Krung Thai Bank, Siam Commercial Bank and Thai Military Bank have a loose arrangement. While a lump sum charge is paid monthly by each participating bank, they have not yet set up a joint venture to handle the business.
Pramote also said the bankers' association was making a feasibility study on introducing shared utility payments through the commercial banks' ATM Pool. Currently, a card-holder can make payment only through the ATMs of his or her bank.
