Finance



By Imee Charlee C. Delavin, Reporter


Security Bank expects to meet EMV deadline




Posted on July 15, 2016


SECURITY BANK Corp. (Security Bank) is on track to securing all its cards with Europay MasterCard Visa (EMV) chip technology in compliance with stricter regulations aimed at beefing up the security features of automated teller machines (ATMs) and guards against credit card fraud.

Security guards stand on duty at a branch of Security Bank. -- AFP
The domestic banking industry must beat a January 2017 deadline to upgrade their information technology (IT) operations and replace their old ATMs with ones compatible with EMV chip-enabled cards.

“I think we are on track. The last time I had a review, they said we will be compliant. Kaya namin (We can do it) [by 2017],” Mr. Salcedo told reporters in the sidelines of the bank’s 65th anniversary on Wednesday night.

The BSP Monetary Board in August 2013 approved an enhanced Information Technology Risk Management (ITRM) framework that requires Philippine banks to eventually shift to EMV, which is a notch above the presently ubiquitous magnetic stripe technology when it comes to security.

BSP-supervised institutions must “shift from magnetic stripe technology to more secure EMV chip-enabled cards by Jan. 1, 2017,” the regulator said then.

An EMV chip-enabled card has additional security layers besides the magnetic stripe. The chip can prevent the transfer of data through skimming, a scheme employed by criminals to copy information from a card. It also has greater data storage capacity compared to the magnetic stripe.

All of these required technological upgrades under the BSP’s ITRM framework “is expected to strengthen management of risks, security of operations and governance on IT-related activities, as well as reinforce regulations on consumer protection on electronic products and service by tackling the growing number of new and sophisticated technological threats,” it had said.

Mr. Salcedo said the bank will shoulder the cost of the upgrade and instead of passing it on to clients.

Security Bank posted lower earnings at P3 billion in the January to March period, from the P3.36 billion it booked the year prior as the lack of trading gains pulled down its bottom line despite the continued expansion of its main businesses.

Its shares closed at P199.10 apiece on Thursday, up by P1.70 or 0.86% compared to its previous finish of P197.40 each.