OREANDA-NEWS. May 28, 2010. Baltic units of Nordea Bank, Swedbank, SEB, and Danske Bank (Sampo Bank) have commenced a cooperation project with the aim of analysing the possibility and expediency of the creation of a common ATM network covering the entire Baltic region, reported the press-centre of Nordea Bank.

The first stage of the analysis should answer the question whether there are any reasons for launching such project and whether it will benefit customers and banks. Customers would be provided an even wider “home bank” ATM network, and in the entire Baltic region. Banks will potentially benefit from the improved access to ATMs and increased efficiency of the network management and transactions processing.

The first stage of the project involves preparatory work and analysis project with the aim of investigating the commercial and technological possibility of the common ATM network. In May 2010 the first inquiry was sent to potential service providers. During summer and autumn, the preliminary offers will be analysed and summarised, and thereupon it will be possible to make decisions regarding further actions.

If the results of the analysis prove positive, an operator will be chosen for providing ATM service, and the banks will outsource to the operator the service which they have been previously providing themselves. Despite one service provider, the service price will be established by free competition since each bank will remain independent in its price formation. If the results of the analysis demonstrate that no expected benefit for the banks as well as customers will arise from the merger of the networks, the project will not be continued. The results of the preliminary analysis will be available by the end of October 2010.

To ensure the simplicity and speed of carrying out the analysis project, four major banks with a pan-Baltic ATM network are currently involved in the project. If the four banks decide to implement the common ATM network, other banks will be able to join it as well. Therefore, the number of banks involved in the common network will not be limited in the future. The more participants there are, the more cost-effective the system will be.

There are examples of similar successfully performing common interbank ATM networks in a number of countries of the European Union, for example, Otto network in Finland. The four banks have a total of 936 ATMs in Estonia, 604 in Latvia, and 868 in Lithuania.

The banks have notified the Competition Board of the cooperation project, comply with applicable competition rules in carrying out the project and have engaged Attorneys at Law Luiga Mody Haal Borenius as their legal advisor.