New BSP rules allow banks to outsource ATM upkeep
BANKS CAN now outsource the servicing of their offsite automated teller machines (ATM) to third-party service providers, the Bangko Sentral ng Pilipinas (BSP) said.
Banks may now outsource the servicing of their off-site ATMs.
The central bank released Circular No. 723, dated May 26, amending the Manual of Regulations for Banks to include ATM servicing for offsite units among the services that banks may outsource to third-party service providers.
The Monetary Board has approved the outsourcing of the following services: the replenishment of cash, the monitoring of the online availability of the ATM and the forecasting of cash requirements.
Third-party service providers are also allowed to conduct first-line maintenance, such as troubleshooting, replenishment of paper and toner and the assessment if second-line maintenance is necessary.
Banks, however, remain responsible for the performance of their service providers “to the same extent as it was before the transfer of said activities.”
The outsourcing of activities should also not impede the supervision of the BSP, the circular stated.
The banks are therefore required to ensure that their third-party service providers are registered with the Department of Labor and Employment.
They should also regularly monitor the service providers’ performance and amend their existing Business Continuity Plans to include the risks brought about by the outsourced services.
Should the third-party service provider enter into any sub-contracting arrangement with other businesses, the banks are must notify the BSP in advance.
Lastly, the banks must ensure that the service providers strictly observe the confidentiality of banking information they may have access to in servicing the ATMs.
The BSP earlier reported that the number of installed ATMs jumped by 11% last year compared to 2009, as banks continued to make banking more convenient for clients.
Installed ATMs numbered 9,370 as of December 2010, up from 8,458 a year before. -- Diane Claire J. Jiao
--
---------------------------------------------
CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.wordpress.com
CONSULTING - http://www.carlosani.com
My Clippings - http://www.myclipps.posterous.com
------------------------------------------
