Sustainable Banking Sustainable Banking Channel- Channel- BSN Agent BankingBSN Agent Banking
Azaddin Ngah TasirSenior Vice PresidentBank Simpanan Nasional (BSN)
Global Sustainable Finance Conference 20134 & 5 July 2013Karlsruhe, Germany
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Malaysia FactsheetMalaysia Factsheet
59 Micro Finance Centres
995 ATMs283 CDMs>700,000 SMS Banking Users>350,000 Internet Banking Users
>6,600 Employees
10 Mobile Banking Units
> 8.2 mil customers3
398 Branches nationwide of which:
8 full-fledged branches118 social branches of which 45 operate where no other banks operate
BSN – National Savings Bank BSN – National Savings Bank of Malaysiaof MalaysiaEstablished under BSN
Act 1974 to take over the functions and responsibilities of the Post Office Savings Bank.
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Member of World Savings Bank Institute (“WSBI”) (previously “International Savings Banks Institute”) since 1977. Our Chief Executive is serving his 4th term as President of WSBI Asia Pacific.
Member of the Association of Development Finance Institutions of Malaysia (“ADFIM”) established in 1981. Our Chief Executive is the current Chairman of ADFIM’s Liaison Committee and Treasurer at ADFIM Council.
Accepted on 6 Nov 2012 as an Associate Member of Association of Development Financing Institutions in Asia and the Pacific (“ADFIAP”).
BSN’s MembershipsBSN’s Memberships
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BSN’s ObjectivesBSN’s Objectives
Mandated Roles & Mandated Roles & Financial InclusionFinancial Inclusion
Promote savings and financing micro enterprises.
Lend support to the Malaysian Government’s Blue Ocean Strategy and the Central Bank’s (BNM) financial inclusion agenda where all Malaysians will have access to banking products & services.
Generate Profits forGenerate Profits forSustainabilitySustainability
To continue evolving in order to remain relevant in the industry so as to generate profit to take care of the well-being of the staff and carry out our mandates.
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BSN’s Financial Inclusion BSN’s Financial Inclusion AgendaAgenda
Underserved CommunitiesNon- urban areasNon-economical areasLow population
Mandate to BSN: Provide financial access
A better way…A better way…
Cheaper cost to serve
Cheaper cost to serve
ScalabilityScalability
OutreachOutreach
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A Better Way…A Better Way…
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BSN Agent BankingBSN Agent BankingOfficially Officially
launched on launched on 27 Jan 2012 - 27 Jan 2012 -
initial 200 initial 200 agentsagents
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BSN Agent BankingBSN Agent BankingOfficially Officially
launched on launched on 27 Jan 2012 - 27 Jan 2012 -
initial 200 initial 200 agentsagents
Recruitment Recruitment of Retail of Retail
Outlets as Outlets as AgentsAgents
Recruitment of Retail Outlets Recruitment of Retail Outlets as Agentsas Agents
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BSN Agent BankingBSN Agent BankingOfficially Officially
launched on launched on 27 Jan 2012 - 27 Jan 2012 -
initial 200 initial 200 agentsagents
Recruitment Recruitment of Retail of Retail
Outlets as Outlets as AgentsAgents
5 Basic 5 Basic Banking Banking ServicesServices
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Banking Transactions Banking Transactions OfferedOffered
* Whichever comes first
The account opening function via P.O.S. will be available by end 2013.
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BSN Agent BankingBSN Agent Banking
Recruitment Recruitment of Retail of Retail
Outlets as Outlets as AgentsAgents
Officially Officially launched on launched on 27 Jan 2012 - 27 Jan 2012 -
initial 200 initial 200 agentsagents
5 Basic 5 Basic Banking Banking ServicesServices
Innovative Innovative use of use of
technologytechnology
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P.O.S. for BankingP.O.S. for Banking
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Banking transactions performed via wireless GPRS at P.O.S. terminals provided by BSN to its agents.Customers confirm their Personal Identification Number (PIN) and a biometric verification is done before initiating their transactions.A receipt will be generated upon any successful transaction.
How does it Work?How does it Work?
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BSN Agent BankingBSN Agent BankingOfficially Officially
launched on launched on 27 Jan 2012 - 27 Jan 2012 -
initial 200 initial 200 agentsagents
Recruitment Recruitment of Retail of Retail
Outlets as Outlets as AgentsAgents
5 Basic 5 Basic Banking Banking ServicesServices
Innovative Innovative use of use of
technologytechnology
Towards Towards Green Green
BankingBanking
Traditional Banking PracticeTraditional Banking Practice
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Customers visit Customers visit branchesbranches
Customers visit Customers visit branchesbranches
Form-basedForm-based Manual inputManual input Fixed lineFixed line Longer processLonger process
•Online•Real-time
Towards Green BankingTowards Green Banking
398 branches
Bring the Bank to Bring the Bank to the Communitythe Community
Bring the Bank to Bring the Bank to the Communitythe Community
FormlessFormless AutomatedAutomated Wireless Wireless
GPRSGPRS Simplified Simplified
processprocess
New Banking modelNew Banking model
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BSN Agent BankingBSN Agent BankingOfficially Officially
launched on launched on 27 Jan 2012 - 27 Jan 2012 -
initial 200 initial 200 agentsagents
Recruitment Recruitment of Retail of Retail
Outlets as Outlets as AgentsAgents
5 Basic 5 Basic Banking Banking ServicesServices
Innovative Innovative use of use of
technologytechnologyTowards Towards
Green Green BankingBanking
Socio-Socio-economic economic
impactimpact
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Impact to the country: Impact to the country: Fulfillment of the Central Bank’s Fulfillment of the Central Bank’s Plan* on Financial InclusionPlan* on Financial Inclusion
UnderservedUnderserved449449
ServedServed388388
46%46% 54%54%
Total Total
Sub-DistrictSub-District
837837
Before Agent BankingBefore Agent Banking
*BNM’s 10-year Financial Sector Master Plan (2011 – 2020)
After Agent BankingAfter Agent Banking
UnderservedUnderserved184184
ServedServed754754
90%90% 10%10%
Total Total
Sub-DistrictSub-District
837837
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Impact to Agents and Impact to Agents and CommunityCommunity
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Impact to BSN Impact to BSN Revenue growth
Transaction growth steadily increasing since launch as public awareness and acceptance of agent banking channel increases
Increased visibility Widespread locations
of agents have increased visibility of the Bank more effectively than having a physical branch.
New customer segment
With 23% presence in urban areas, BSN agent banking is attracting the urban middle to high income to bank with BSN.
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Impact to BSN Impact to BSN Cost effective set up and operations
Rapid expansion
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Impact to BSNImpact to BSN
Bill Payment80%
Cash Deposit13%
Withdrawal6%
eSSP0.4%
Cashless Payment
0.6%
% No. of Transaction
Overall Performance as at 31st May 2013Overall Performance as at 31st May 2013
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BSN Agent BankingBSN Agent BankingOfficially Officially
launched on launched on 27 Jan 2012 - 27 Jan 2012 -
initial 200 initial 200 agentsagents
Recruitment Recruitment of Retail of Retail
Outlets as Outlets as AgentsAgents
5 Basic 5 Basic Banking Banking ServicesServices
Innovative Innovative use of use of
technologytechnologyTowards Towards
Green Green BankingBanking
Socio-Socio-economic economic
impactimpact
Sustainable Sustainable developmentdevelopment
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BSN Agent Banking & Sustainable BSN Agent Banking & Sustainable DevelopmentDevelopmentThe NationThe Nation Communities Communities
& BSN agents& BSN agentsEnvironmentEnvironment BSNBSN
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Our Implementation FocusOur Implementation Focus
Public Information Public Information & Awareness& Awareness
SignageSignage
Promotional Promotional ItemsItems
TV TV Commercial Commercial / Interview/ Interview
Community Community Events: Events:
FOMCA & FOMCA & BNMLINKBNMLINK
24-Hour 24-Hour Customer Customer Service Service HotlineHotline
Agent Agent Knowledge & Knowledge &
SupportSupport
New & New & Refresher Refresher Agent’s Agent’s TrainingTraining
On-On-Ground Ground Support Support
Agent Agent Helpdesk – Helpdesk – Toll-Free Toll-Free
LineLine
Social Social Media - Media -
Facebook Facebook
BulletinBulletin
Road Road ShowsShows
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Moving ForwardMoving Forward
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TVCTVC
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