Pedro Cardoso
The implementation of the “Know-Your-Customer (KYC)” facial recognition technology for ATM users with bank cards from mainland China will ensure that the person who uses the card is the rightful owner, the Banco Nacional Ultramarino (BNU) Chief Executive Officer Pedro Cardoso told the Times in an interview yesterday.
Cardoso said that the bank sees this development in a “very favorable” light. “It is a costly development but also quite effective,” he said, noting that people in Macau have become accustomed to seeing people using cards from banks based in mainland China that “most likely do not belong to them.” The CEO stated that the unlawful use of a foreign bank card “disturbs the lives of residents.” He added that the implementation of facial recognition technology represented a “significant investment,” since the costs of retrofitting ATMs would be borne by banking institutions.
BNU owns approximately 200 ATM machines in Macau. Of these, approximately 50 percent are located at the gaming operators’ integrated resorts; specifically, a large number of ATM machines are located on the gaming floors.
The CEO highlighted that the investment required to install the new KYC system was significant, both in terms of financial resources and in terms of time.
“We had to do this investment and to do it quickly in order to comply with the new regulations,” he said. He did not want to disclose an approximate amount for the installation.
When asked about the purpose and possible consequences of implementing the KYC system, Cardoso noted that the additional infrastructure has attracted more tourists to the region. Nevertheless, “this doesn’t mean that the territory should be open to all kinds of activities, especially ones that aren’t according to the law,” he remarked.
Pedro Cardoso was recently granted the Banker of the Year for Asia award in 2017 by international business publication World Finance. “I had the idea that this type of award was only given to large organizations. […] BNU operates in a small territory (Macau) and considering that dimension, BNU is also a relatively small bank,” he said.
Cardoso believes that such recognition is “an award to the entire bank team.” He noted the “fortunate coincidence” of arriving just as the institution was celebrating the 115th anniversary of its presence in Macau. “It’s a good reward for all the efforts made by our existing and previous staff,” he remarked.
Questioned on the factors that contributed to him receiving the award, Cardoso said that when World Finance explained their decision-making process they “referred to the progress of the bank in the last few years in terms of the main Key Performance Indicators (KPI) and in terms of innovation and new products, services and operation workflow.” He also noted that his “sixth-sense” informed him that “the role of BNU throughout all these years connecting Asia and Western countries and Portugal and the Europe in particular is also most likely one of the reasons for this award.”
Questioned on the region’s specific characteristics relating to recent global trends in electronic payment methods as well as electronic and online banking systems, the BNU CEO noted, “Macau is a particular case. China’s [banking system] is one of, if not the most, advanced banking systems in the world, in terms of electronic payments and in particular in mobile payment solutions. Macau is particularly well placed to develop significantly into that field.” However, he noted that, “considering Macau’s specific characteristics [there is] still a mix between traditional banking and developed banking,” in this specific field. He emphasized that BNU is working on both fronts. In terms of traditional banking, the institution is preparing to open 20 new branches, within this year alone (21 including the Hengqin branch which opened earlier this year). On the other hand, the bank is also “working hard in terms of developing electronic banking solutions and specially targeting the new generation, the so-called ‘millennials’ who are much more prone to use such technology.”
But there are challenges to implementing electronic banking solutions in Macau, where the banking system has not been included in broader e-payment systems such as PayPal or Alipay. “The way is to work through partnership. A traditional bank like BNU can’t really go anywhere [with this] by itself. The way to go in my perspective is to work with the so-called Fintechs – which are companies much more advanced in terms of financial payment [solutions] – and that is the way we are working, establishing partnerships that can help us to progress in that area,” Cardoso said.
As a final remark on future challenges for BNU, Cardoso noted that as a well-established bank, BNU could use all opportunities available as a result of the development of the Macau SAR. Nevertheless, “contrary to many of its competitors, BNU [decision centers] and parent companies (Caixa Geral de Depositos) are very far way while the others are operating in their ‘home base’ which gives them a significant advantage.”
To tackle the fierce competition, Cardoso explained that BNU had to “leverage its position in the Portuguese-speaking countries” while also focusing on improving the quality of service and innovation by providing new services targeting the particular needs of millennials. This strategy follows a worldwide trend in banking.
