American Express has recently teamed up with Indian banks to allow the use of the Amex credit cards on the member banks' ATMs. HDFC Bank was the first to sign up with AMEX in December of 1998.

HDFC Bank has implemented this connectivity under a very tight delivery schedule and budgetary commitments from Amex said HDFC Bank's head of technology and executive vice-president CN Ram.

HDFC Bank uses BASE24 software to run the ATM network across several cities in the country. The connectivity between the banks BASE24 system and AMEX interchange went live this week. The BASE24 software provides an integrated platform to banks for on-line banking through front-end delivery channels like ATMs, POS, branch tellers, Smart Card, telebanking, call centres, internetbanking and e-commerce.

Amex connectivity will ensure HDFC Bank with acquiring revenue of nearly $2.25 per transactions for every AMEX credit card used on the bank's ATM. "Both AMEX International and Domestic cards will be accepted on the ATMs," said Ram.

AMEX has several millions of cardholders overseas, of which a subsatnatial percentage visit India either for business or holiday. It has issued over 100,000 credit cards within India as well. HDFC Bank will stand to gain from the usage of these cards on their ATMs.

As a revenue earning strategy, HDFC Bank will acquire transactions by allowing cardholders having a VISA or a Master Card to use the bank's ATMs. For this purpose the VISA and Master Card interfaces have also been installed on the BASE24 system at the bank.

"HDFC Bank has made investments running into several crores to build the infrastructure to provide the state-of-the-art delivery channels to its customers. As a long-term strategy, HDFC Bank would invest into technology as the growthvehicle to ensure the leading edge for the bank," said Ram.