Sustainable Banking ChannelSustainable Banking 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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59 Micro Finance Centres

995 ATMs

283 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 full­fledged branches

118 social branches of which 45 operate where no other banks operate

Established 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 ofMalaysia (“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”).

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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 for

SustainabilitySustainability

To continue evolving in order to remain relevant in the industry so as to generate profit to take care of the well­being of the staff and carry out our mandates.

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Underserved Communities

Non­ urban areas

Non­economical areas

Low population

Mandate to BSN: Provide financial access

A better wayA better way……

Cheaper cost to serve

Cheaper cost to serve

ScalabilityScalability

OutreachOutreach

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Officially Officially

launched on launched on

27 Jan 2012 27 Jan 2012 ­­

initial 200 initial 200 agentsagents

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Officially 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

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Officially 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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* Whichever comes first

The account opening function via P.O.S. will be available by end 2013.

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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 use Innovative use of technologyof technology

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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.

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Officially 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 use Innovative use of technologyof technology

Towards Towards

Green BankingGreen Banking

Traditional Banking PracticeTraditional Banking Practice

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Customers visit

branches

Customers visit Customers visit

branchesbranches

�� FormForm--basedbased

�� Manual inputManual input

�� Fixed lineFixed line

�� Longer processLonger process

•Online•Real-time

398 branches

Bring the Bank to

the 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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Officially 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 use Innovative use of technologyof technologyTowards Towards

Green BankingGreen Banking

SocioSocio--

economic economic

impactimpact

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UnderservedUnderserved449449

ServedServed388388

46%46% 54%54%

Total Total

SubSub--DistrictDistrict

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

SubSub--DistrictDistrict

837837

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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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Cost effective set up and operations

Rapid expansion

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Officially 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 use Innovative use of technologyof technologyTowards Towards

Green BankingGreen Banking

SocioSocio--economic economic

impactimpact

Sustainable Sustainable developmentdevelopment

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The NationThe Nation Communities Communities & BSN agents& BSN agents

EnvironmentEnvironment BSNBSN

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Public Information Public Information & Awareness& Awareness

SignageSignage

Promotional Promotional ItemsItems

TV TV Commercial Commercial / Interview/ Interview

Community Community Events: Events:

FOMCA & FOMCA & BNMLINKBNMLINK

2424--Hour Hour Customer Customer

Service Service HotlineHotline

Agent Agent Knowledge & Knowledge &

SupportSupport

New & New & Refresher Refresher AgentAgent’’s s TrainingTraining

OnOn--Ground Ground Support Support

Agent Agent Helpdesk Helpdesk ––TollToll--Free Free

LineLine

Social Social Media Media --

FacebookFacebook

BulletinBulletin

Road Road ShowsShows

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