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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