TWO commercial banks operating in Fiji have indicated progress in discussions of the National Switch, a platform that will allow payment services of all banks on the same interchange network.
ANZ Bank and BRED Bank Fiji have confirmed that they were in discussions with the Association of Banks in Fiji (ABIF) on the National Switch.
This is after the two banks signed and announced a new interchange agreement allowing BRED customers access to ANZ’s 94 ATMs and more than 1400 EFTPOS terminals in Fiji and vice versa.
ANZ Bank country head and Fiji Institute of Banks (FIB) president Saud Minam said they were still working towards implementing the Government initiative.
“As of right now, what we have today is every single bank is connected,” Mr Minam said.
“Are we close to that? No, we are not close to that. Are we working towards it? Yes and there have been discussions between the ABIF as well as the Reserve Bank of Fiji where we need to come up with a roadmap how soon we can get this thing up and running.”
Mr Minam, however, clarified that their new interchange agreement with BRED Bank was “completely different” from the National Switch.
“If you look at it, National Switch is completely different than what we are talking about here,” he said.
“There’s another debate of discussion where we debate whether are we replacing the National Switch or is the National Switch replacing us. How much is it going to take and what are the benefits and all of that.
“Today we need to focus towards the goal that every and any customer can use either an ATM or EFTPOs anywhere in Fiji.”
While not divulging much detail about the National Switch, BRED Bank chief executive officer and ABIF president Frederic Reynaud said they were working on it.
“National Switch is another project, we are working on it. In the meantime we are interconnected,” Mr Reynaud said.
While total interoperability was an issue between commercial banks, the interchange will bring about total interoperability and allow even a new player in the Fijian market to have immediate access.
The proposed National Switch or interchange will also not limit access to customers of certain banks only.
By virtue of the proposed law, all banks will be required to link in, enabling their card holders to draw cash or make payments from any ATM or POS machine throughout Fiji.
Government allocated $60,000 for the implementation of the initiative in the 2017-2018 National Budget.
Last December, Minister for Economy Aiyaz Sayed-Khaiyum said the National Switch would down the costs of electronic transactions.
For instance, an ANZ ATM card holder is charged $1.50 per transaction using a Westpac ATM.
However, these costs are expected to be lowered after the National Switch initiative is rolled out.
