Kagman holds potential for off-site ATM

The Department of Commerce has identified Kagman Village to be among the various areas on Saipan that may need an off-site Automated Teller Machine primarily because its increasing population base pose a corresponding growth in ATM user traffic.

David S. Palacios of the commerce department said the village’s distance from the commercial district of Saipan, where most banking infrastructures are concentrated, also make Kagman a viable place for new ATMs.

“The village of Kagman would appear to be the most profitable site for any new development as it currently has the largest population and the closest ATMs or banks are located quite a distance,” Mr. Palacios said.

Banking facilities that are closest to Kagman are situated in Marina Business Park in Puerto Rico which houses the Bank of Hawaii and the Hongkong and Shanghai Banking Corporation.

The most recent off-site ATM was installed by the Bank of Hawaii at the Town House Building.

Aside from Kagman Village, the commerce department anticipates banking companies in the Northern Marianas to put up additional off-site ATMs, especially when user traffic increases as the local economy recovers given the anticipated growth in visitor arrivals.

Given the convenience ATMs offer to bank customers and clients, quite a few have been set up across the island, according to Mr. Palacios.

Surprisingly, however, none of the banking institutions in the Northern Marianas are yet to install an automated teller machine in the busy commercial district of Garapan.

People who regularly visit the Garapan Street Market every Thursday have expressed concerns that they have to drive up to the Joeten-Hafa Adai or the Bank of Guam building in order to withdraw cash from their ATM cards.

It would have been more convenient if ATMs are installed anywhere in the vicinity considering the fact that the area is considered Saipan’s busiest because tourists flock the area due to the presence of stores around.

Government statistics noted a dramatic increase in the number of ATMs installed by commercial banks operating in the CNMI during the previous year when the islands’ economy tumbled down as an effect of financial upheavals in Asia.

At present, there are approximately 23 on-site and off-site automated teller machines operating in the CNMI, which is close to 28 percent higher than the 18 ATMs reported by the Banking Division of the commerce department in December 1997.

Since last year, new automated teller machines in on-site and off-site locations such as restaurant, shopping centers and hotels have been installed by at least two of the 10 banks operating in the CNMI.

The growth in the CNMI financial sector is anticipated to come from the additional ATMs which local and foreign banks in the islands would eventually install.

“As competition becomes tougher, the fear of losing an account would force banks to balance costs and client reach and this is where ATMs come in” the commerce department said.

The whole principle behind ATM is convenience for customers who may not have enough time to transact businesses like deposits and withdrawals during banking hours.

As ATMs reach out 24 hours a day to clients, banks also consider the system a very efficient way in cutting down on manpower expenses as one machine can virtually replace several tellers.

This is why banks continue to rationalize their deployment of ATMs to ensure they are located in areas where user traffic is heavy, which could mean more off-site ATMs for commercial centers in the CNMI.

Also, ATMs serve tourists better since these would render them free from carrying cash when traveling. The system offers 24-hour banking service minus the hassle of writing a check or carrying cash.

Banks have also installed new machines in off-site locations like the Saipan Grand Hotel lobby, Tinian Dynasty Hotel and Casino, McDonald’s Restaurant and the new Bank of Guam branch in Rota.