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Consing says BPI losing money on ATMs: Higher fees needed to recover expenses


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SkyMan

https://bilyonaryo.com.ph/2019/11/19/consing-says-bpi-losing-a-lot-of-money-on-atms-higher-fees-needed-to-recover-expenses/?fbclid=IwAR3UJ9B1BzStNWtgf5odSLrsqbMMLLi6TvYLT0CE-71ulkxoiQSfdQxqojQ

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Consing says BPI losing a lot of money on ATMs: Higher fees needed to recover expenses

Bank of the Philippine Islands (BPI) Chief Executive Officer Cezar Consing tells lawmakers that maintaining an ATM network is putting a big hole in the bank’s bottom-line.

“A fairly large percentage of the ATMs are actually losing money…If you were to dissect the businesses of a bank and look at ATMs on a standalone basis, my suspicion, based on my bank’s own costings, is it makes no money,” Consing told the House Committee on Banks and Financial Intermediaries Tuesday during a public hearing.

Consing said BPI has 2,500 ATMs of which hundreds do not make money specifically those in far-flung places where it has to send motorized vehicles with guards for reloading.

“Can you imagine, Christmas time is coming…and our biggest problem is how do we stock our ATMs fast enough? Just a few days ago, our bank, and we are just one bank, had over P4 billion in withdrawals. Can you imagine how fast you have to refill?” said Consing.

The House is proposing to put a cap of P5 to P10 on interbank transactions with intrabank and interbank balance inquiries free of charge. Banks on the average charge P13 per ATM transaction.

Consing said BPI could opt to piggyback on the ATM networks of other banks, noting that most small banks rely on six big banks – BPI, Banco de Oro (BDO), BPI, Land Bank, Metrobank, Rizal Commercial Banking Corporation (RCBC), and Philippine National Bank – for their off-branch withdrawals, deposits and inquiries.

“But the point is also made, it’s branding, it’s market presence, it’s also duty….All I’m saying is, I think the issue on ATMs in the country is, we need for ATMs. We really need for ATMs. At least allow the banks to recover their investments,” said Consing.

Hey, if part of your business is costing you money then the only smart business decision is to cut your losses.  Close down all your ATMs and watch your profits go through the roof.....or NOT!!!!  How did this guy get a job?

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I think the original business case for ATMs was that it would allow the banks to reduce higher cost people (and smaller branches) while providing customer self service options and reducing customer wait times. 
 

Only after a few years did interbank fees crop up. 
 

Then the standalone (not at branches) machine was outsourced, leading to no name machines charging for pretty much every transaction. 
 

Now we’re at the point where ATMs are “supposed to make money” rather than reduce other costs and increase customer satisfaction AND the government wants to put a cap on transaction fees. 
 

Mr Consing would probably be better off if his customers would demand Interac like transactions and use their ATM cards at the point of sale so they wouldn’t overload his cash resupply organization...Oh wait, out here, most of his customers have “pawned” their ATM cards for some otang...
 

 

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SkyMan
1 hour ago, Paddy said:

Now we’re at the point where ATMs are “supposed to make money” rather than reduce other costs and increase customer satisfaction 

Right, bank ATMs aren't there to make money but to provide convenience for the bank's customers so they are encouraged to open accounts and deposit more money that they can then lend out with interest and thereby, make money.  There are companies in the US that put small ATMs in 7-11s and other convenience stores which charge a (hefty in my opinion) fee for their use.  The store gets some of that for providing the space and the company pockets the rest.  You are paying for the convenience of getting money the same place you get your gas and Slurpee.  I understand that and have no problem with it though I myself wouldn't use one unless a desperate emergency.  But a bank charging for their own ATM use?  No way.

Edited by SkyMan
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Davaoeno

I think BPI is onto something.  How about 10 pesos for a withdrawal slip or  a deposit slip ?   Want to talk to a teller??  10 pesos a minute for taking up her time.  If we want to use the services of BPI we should be prepared to pay for them !!    No more free stuff !! 

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SkyMan
3 minutes ago, Davaoeno said:

I think BPI is onto something.  How about 10 pesos for a withdrawal slip or  a deposit slip ?   Want to talk to a teller??  10 pesos a minute for taking up her time.  If we want to use the services of BPI we should be prepared to pay for them !!    No more free stuff !! 

And they should charge rent for your deposit because they have to hold onto it and protect it.  Safes and guards aren't cheap.

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softail

Lately when I use my BPI debit at point of purchase, the next day I get an E-Mail from BPI thanking for not using the ATM.

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to_dave007
9 hours ago, softail said:

Lately when I use my BPI debit at point of purchase, the next day I get an E-Mail from BPI thanking for not using the ATM.

Except when I'm in Canada..  I (almost) never use an ATM.  Maybe once a year here.  Everything is over the counter.  I like hearing "Good morning Mr Dave" from the teller  and I like when the guard tells me the date BEFORE I ask for it, because he knows I always forget.  And I think it's been about 6 years since I paid by credit card except at Cathay Pacific.    So..  my ATM fees are pretty much ..  er.. zero. 

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wondersailor

Just give us all your money and just go away, don't ask for any of it back, and never bother us again! BPI corporate policy toward their customers. I've had it with them. Time to close my accounts.

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Headshot
12 hours ago, SkyMan said:

How did this guy get a job?

He's related to the right people.

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Salty Dog
8 hours ago, to_dave007 said:

Except when I'm in Canada..  I (almost) never use an ATM.  Maybe once a year here.  Everything is over the counter.  I like hearing "Good morning Mr Dave" from the teller  and I like when the guard tells me the date BEFORE I ask for it, because he knows I always forget.  And I think it's been about 6 years since I paid by credit card except at Cathay Pacific.    So..  my ATM fees are pretty much ..  er.. zero. 

Some don't have a choice though. Many people still use their home country banks.

My monthly expenses often required payment in cash. Especially the rent.

I always got my cash from the ATMs at HSBC across from Ayala Mall, where I could withdrawal much more than from any Philippine bank ATM. Even then it took me two transactions to get all the money I needed for the month. 

It was within a few minutes of our home. I often met my landlord in the mall to pay the rent or went to his home which was in the Solinea Tower, also across from the mall.

All in all, it was very handy and I never experienced an issue with them not having cash, which is all to common with Philippine Bank ATMs.

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to_dave007
1 hour ago, Salty Dog said:

I always got my cash from the ATMs at HSBC across from Ayala Mall, where I could withdrawal much more than from any Philippine bank ATM. Even then it took me two transactions to get all the money I needed for the month. 

Did exactly the same..  at the same bank..  when I first got started.  I no longer need the ATM, but In a way I still do those ATM runs to Ayala.. as I often time my city trips to the middle or end of the month so that my old Canadian friend..  who needs that ATM.. can join me on the trip.  I drop him at HSBC and pick him up at Rustan's later in the day for the return trip.

Edited by to_dave007
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After standing in a queue for 55 minutes to deposit a check that only took 4 minutes, I’ve tried to never use BPI’s ATMs. You’re not getting 250 p from me with my foreign card. 

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mikewright

Don't know if it's available in other countries, but in Australia ING Bank has an Everyday Orange Account with a debit card which doesn't charge fees for any ATM withdrawals and it refunds any overseas bank fee charges made by other banks.

I purchased some Cebu Pacific airline tickets online, which had an "international transaction fee" of $10.76; this fee was rebated to my account the same day. Same with the 250 peso ATM fee charged by banks in the Philippines; ING rebates that fee back to your account.

If you withdraw cash at a retail store such as Aldi or Woolworths, ING  credits a $0.50 "cash out bonus" to your account!

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On 11/25/2019 at 7:13 AM, mikewright said:

Don't know if it's available in other countries, but in Australia ING Bank has an Everyday Orange Account with a debit card which doesn't charge fees for any ATM withdrawals and it refunds any overseas bank fee charges made by other banks.

I purchased some Cebu Pacific airline tickets online, which had an "international transaction fee" of $10.76; this fee was rebated to my account the same day. Same with the 250 peso ATM fee charged by banks in the Philippines; ING rebates that fee back to your account.

If you withdraw cash at a retail store such as Aldi or Woolworths, ING  credits a $0.50 "cash out bonus" to your account!

Yes - sort of

I have 2 US companies  - Chase full service and Schwab

Chase for all US transactions  - scheduled payments / transfers / deposits, etc. expensive or using other bank fees

Schwab here for money withdrawal - rebate all ATM fees and calculate at very close to net rate at exact time of transactions

Edited by lamoe
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