BancNet CASE STUDY
BancNet reaches out to more banks via ATM Outsourcing secured by SafeNet
Customer Proﬁle BancNet has always been a prime mover of electronic banking in the Philippines. It was the ﬁrst automated teller machine (ATM) consortium established in the country, and, currently, the largest, with a total membership of 60 banks and a cardholder base of 8.4 million. BancNet was the ﬁrst to implement the network technology that allows multi-bank and multi-channel electronic payments, which, today, continues to empower Filipinos with the convenience and ﬂexibility to conduct transactions not only at any ATM anywhere, anytime, but also at point-of-sale (POS) terminals, on the Internet, and with mobile phones.
Business Challenge Thinking of ways to sustain its market leadership and further share its strengths with the local banking community, BancNet turned to offering ATM operations outsourcing to give its clients the leeway to focus more on their respective core businesses. The service is also aligned with BancNet’s thrust to reach out to more banks, including thrift and rural banks, so people in the countryside can enjoy the beneﬁts of modern banking. Understanding the complex processes and high costs involved in starting and managing an ATM network, BancNet provides banks with a more convenient option through its outsourcing services. BancNet has the capability to perform a wide range of functions, such as ATM switch hosting, card management, and ATM driving, on behalf of its clients. Utilizing a multi-institution ATM switch, it can issue a bank’s ATM cards, drive its ATMs, connect to its authorizer for approval, and
BancNet Case Study
interface it to other switches, such as China Union Pay, JCB, Diners Club, Visa and MasterCard globally, and ExpressNet and Megalink locally. ATM switch hosting and related functions involve a gamut of applications that require a high-performing hardware security module (HSM), capable of ensuring the utmost data security, cryptographic processing, and key management during interbank transactions. Given BancNet’s extensive client and cardholder base, it also needs a reliable, foolproof security device to safeguard the data and processes within the hardware. When its existing security solutions provider indicated conﬁdence in delivering the project requirements, but with very high cost implications, BancNet opted to search the market for a new and dependable partner, adept at meeting the critical security demands of its outsourcing venture.
BancNet found exactly what it needed in SafeNet’s portfolio of superb information security solutions. It chose SafeNet’s Luna EFT, an optimized security solution for ATM switch hosting and ATM driving. “The most attractive feature of this module is that it enables us to secure all the transactions of our member banks,” said BancNet’s Outsourcing Services head, Cecill Irigo. “This substantially decreases our costs and lets us leverage on economies of scale. Concomitantly, we are able to offer our hosting service at a competitive price. Luna EFT provides good value for the investment as it also guarantees superior security architecture that competently addresses the needs and demands of our outsourcing business.”
With the ease of deployment and implementation of the Luna EFT, BancNet was able to fast-track its outsourcing business with an absolutely safe and sound ATM solution. Six middle-tier banks have signed outsourcing agreements to tap into BancNet’s innovative and highly secure hosting services. Most of these new clients are thrift and rural banks that reach out to the ﬁnancial needs of Filipinos not only in Metropolitan areas but in rural areas as well.
Luna EFT fends off potential adversaries by securing the integrity of data at rest, in use, and in transit from network to network, from the point of transaction to BancNet’s system, to its clients’ systems and back again. It facilitates protection of cryptographic keys, the process of encryption and decryption, and payment transactions, as well as card and PIN issuance and veriﬁcation. According to Ms. Irigo, “Setting up and operating the module was a breeze for our IT team, as the module features an easy-to-use graphic user interface management console that makes installation and conﬁguration quick and almost effortless.” She elaborated that Micro Resources International Inc. Philippines (MRI-Philippines), SafeNet’s local partner, assisted in providing them with technical support, thus they did not experience any hassle in integrating LUNA EFT with its ATM switch system.
With SafeNet securing its outsourcing facility, BancNet has successfully broadened its reach, providing more value-laden services to its member banks and their customers. In the process, it has also heightened its ability to contribute to countryside development. Having SafeNet as a partner, BancNet is more conﬁdent of keeping its industry leadership and looks forward to more service innovations.
About SafeNet Founded in 1983, SafeNet is a global leader in information security. SafeNet protects its customers’ most valuable assets, including identities, transactions, communications, data, and software licensing, throughout the data lifecycle. More than 25,000 customers across both commercial enterprises and government agencies, and in over 100 countries, trust their information security needs to SafeNet. For more information, please visit www.safenet-inc.com.
“SafeNet truly understands the needs of clients like BancNet, and responds to them by addressing their mission-speciﬁc security needs. Customers today require banking services to be innovative, secure, and convenient. SafeNet helped BancNet fulﬁll these requirements with ease, providing the conﬁdence that every service or transaction is well protected”, said Mr. Proceso Carlos, President of MRI-Philippines, a leading supplier of products and services to ﬁnancial, banking, communication, and commercial industries.
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BancNet Case Study