ATM fee hike still on hold

A “reasonable” charge is an increase from P1 to P3 but taking into account the lenders operate on varying business model and client base

Transaction fee adjustments at the various banks’ automated teller machines (ATM) remain on hold till after the lenders have finalized plans to implement them in phases rather than at once, the Bangko Sentral ng Pilipinas (BSP) said.

BSP Governor Benjamin Diokno said some of the adjustments were unreasonable and the lenders were asked to justify them in light of the enabling technology that allow each one to deliver the service.

“(Some) rates are unreasonable. We have to look at the hardware and software (but the fee adjustment) should be reasonable,” Diokno told reporters.

BSP Deputy Governor Chuchi Fonacier said while some banks already secured approval, the lenders are still required to come up with a communication plan so that the banking public is properly informed.

The adjustments should also be done in phases and not all at once to allow clients to adjust to the charges, Fonacier said.

“There were some banks who got approved already, but only for P3 to P18 (per transaction). They are required to inform their clients,” Fonacier told reporters.

“Our approval contains some conditions and all of the conditions would have to be met before they implement the increase. If they have not yet complied with the notification, they cannot implement,” she reiterated.

According to her, less than 10 proposed charges have been reviewed by the BSP. She declined to go into specific bank proposals.

BSP senior director and OIC for Financial Technology Sub-Sector Vicente De Villa III said a “reasonable” charge is an increase from P1 to P3 but taking into account the lenders operate on varying business model and client base.

“You have to look at it from the greater perspective of pricing on their fees and services. Banks cater to different profiles of consumers. There are banks that cater to more digital-savvy people (while others) have it as a mix,” De Villa said.