Latin Finance - July/August 2009 - 44

Guide to Banking Technology avoid theft of personal identification numbers. New technology should also make tellers’ work easier, helping cut operating costs and to reach customers in remote locations, a particular challenge in rural areas. In Ecuador, Bonilla says, Diebold has helped banks deploy remote teller systems (RTS) that help banks cut the cost of operating branches. Instead of opening a whole branch, an RTS only requires a small space on two levels. On the first level, she explains, you have one or more ATMs equipped with a videoconferencing system. The customer indicates to the teller, who is in an office on the second level, what kind of transaction he or she Telecoms Versus Banks Scotiabank is one of the banks developing new technologies needs to do. If, for example, the customer needs to make a deposit, they put the money in a capsule and send it to the for its banks in Latin America and the Caribbean. Kim teller in return for a receipt. “The McKenzie, executive vice president of teller can make several transactions information technology and solutions, at the same time,” Bonilla says. says the bank already offers basic “In Peru, in partnership with internet services that allow customers Banco del Crédito, Diebold has been in the region to perform simple tasks successful implementing a system such as checking account balances called a banking correspondent, online. which was first introduced in Brazil She adds that systems across the some five years ago,” Bonilla region are being standardized and explains. integrated to permit implementation of Banking correspondents allow more sophisticated capabilities, people in remote areas without banks ranging from mobile banking to online to have access to banking services, securities trading. “Developing mobile but can also be used in cities, as banking will be a priority over the next satellites to reduce congestion at the 12 months. It will not take that long, branch. The correspondents, Bonilla but first we need to partner with says, are small machines attached to telecommunications companies and cash registers at retail shops. “The providers,” she says. store owner is the banker in this case LatAm financial institutions are Facilitating remittance flows: RegaloCard's Keough and customers can use these taking a big risk if they do not hurry to correspondents to pay taxes, implement more advanced mobile withdraw money and make deposits,” she adds. banking services, Van Dam warns. “Mobile operators could compete with banks,” he says. “They are already getting into the space and they’re being pretty aggressive. In Kenya Remittances Go Mobile the number one bank is a mobile operator,” he adds. Not only is there a trend for banking services to go mobile, Van Dam says two mobile operators in Latin America technology is also allowing remittances to be sent via have approached his company in six months with the mobile devices or the internet. For example, a new intention of setting up mobile banking services. “In the product called RegaloCard, launched in June, allows Philippines the two largest banks are owned by mobile workers in the US to send money to relatives in Latin operators. The largest card issuer is also a mobile operator,” America instantly. Sums as low as $25 can be sent and he explains. He declines to name the firms. there is no commission fee. The RegaloCard is like a gift card, explains founder Gregory Keough. Consumers choose the gift card they Beyond Mobile Devices wish to send to a relative, whose cell phone number they Banks in Latin America do not need to rely only on mobile provide. The recipient instantly receives a text message banking to enhance services. The internet and automated teller machines (ATM) also provide avenues for innovation. with a personal identification number they can use to make purchases at a specified retailer. Ohio-based Diebold is deploying new ATM-based Keough explains that initially, RegaloCard will be sold technologies in Latin America, according to Paula Bonilla, in retailers in the northeastern US and can be used at marketing and communications manager for the region. specific retailers in El Salvador. But by the end of the year While ATMs are widely used to withdraw money from bank accounts, Bonilla says new technologies allow ATM users to it should also be sold in California, Washington DC and Texas, and be redeemable at retailers all over Central deposit money – in the form of cash or checks— into bank America and Mexico. accounts, while also having improved safety features that early stage. Other emerging economies like South Korea and Malaysia are well ahead, the study indicates. However, sophisticated mobile banking services may be coming soon to LatAm. Sciarrotta says banks may be ready to deploy more advanced types of mobile banking services in the second half. “The population of countries such as Brazil, Mexico and Chile is highly banked and has access to the more expensive mobile devices that support the newest services. It is also more willing to try out new technologies,” says Sciarrotta. 44 LATINFINANCE July/August 2009

Latin Finance - July/August 2009

Table of Contents for the Digital Edition of Latin Finance - July/August 2009