2 Malaysia Factsheet General Capital: Kuala Lumpur Population: 29 mil Official language: MalayEthnic groups:Malay 50.4%Chinese 23.7%,Indigenous 11%,Indian 7.1%Others 7.8%PoliticalGovernment :Federal constitutional elective monarchy and Federal parliamentary democracyLegislature: ParliamentUpper house: Dewan NegaraLower house - Dewan RakyatEconomicReal GDP (%): 4.1% (Q1 2013; 5.6% in 2012)Inflation (%): 1.8% (May 2013; 1.2% in Dec 2012)Unemployment: 3.3% (Mar 2013)Total trade Jan 2013: RM110.7 bil (€26.4 bil)Top 5 trading partners: Singapore (16%), China (14%), Japan(10%), EU (9%), US (8%).
3 BSN – National Savings Bank of Malaysia Established under BSN Act 1974 to take over the functions and responsibilities of the Post Office Savings Bank.>6,600 Employees398 Branches nationwide of which:8 full-fledged branches118 social branches of which 45 operate where no other banks operate59 Micro Finance Centres995 ATMs283 CDMs>700,000 SMS Banking Users>350,000 Internet Banking Users10 Mobile Banking Units> 8.2 mil customers3258 CDMsAs at 31 Mar 2013
4 BSN’s MembershipsMember of World Savings Bank Institute (“WSBI”) (previously “International Savings Banks Institute”) since 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 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”).
5 Mandated Roles & Financial Inclusion BSN’s ObjectivesGenerate Profits forSustainabilityMandated Roles & Financial InclusionTo 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.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.
6 BSN’s Financial Inclusion Agenda Mandate to BSN: Provide financial accessA better way…Cheaper cost to serveScalabilityOutreachUnderserved CommunitiesNon- urban areasNon-economical areasLow population
8 Officially launched on 27 Jan 2012 - initial 200 agents BSN Agent BankingOfficially launched on 27 Jan initial 200 agents
9 BSN Agent BankingOfficially launched on 27 Jan initial 200 agentsRecruitment of Retail Outlets as Agents
10 Recruitment of Retail Outlets as Agents Agents’ CriteriaRegistered Company - min. 12 months in operationGPRS coverageGood Financial Record5km radius from the nearest BSN Branches.10km radius from other agents.Suitable building infrastructu reWhy Retailers?It has own core businessTrusted by the communityHigh foot-trafficProximity to customersMinimal training requiredIt has own active cash flow
11 BSN Agent BankingOfficially launched on 27 Jan initial 200 agentsRecruitment of Retail Outlets as Agents5 Basic Banking Services
12 *NUMBER OF TRANSACTIONS PER DAY (Per transaction Per Day) Banking Transactions OfferedTRANSACTION TYPESTRANSACTION LIMITAMOUNT*NUMBER OF TRANSACTIONS PER DAY*MAXIMUM(Per transaction Per Day)MINIMUMDepositsRM500 (€120)RM10 (€2.4)3 TimesWithdrawalsBill PaymentsRM2,000 (€475)No MinimumUnlimited for Different BillsPurchase of BSN’s Savings certificate (eSSP)RM1,000 (€240)UnlimitedCashless Payments* Whichever comes firstThe account opening function via P.O.S. will be available by end 2013.
13 BSN Agent BankingOfficially launched on 27 Jan initial 200 agentsRecruitment of Retail Outlets as Agents5 Basic Banking ServicesInnovative use of technology
14 P.O.S. for BankingThe Point-of-Sales (P.O.S.) terminal is widely usedAgent may have experience using itAbility to complete transactions from any geographical locationIncreased performance with minimized transaction completion timePrints bank-acknowledged receipt at the end of every transactionThis palm-sized POS terminal equipped with a Biometric thumbprint reader, coupled with GPRS technology has been the success factor in the roll out of BSN’s agent banking.
15 How does it Work?Transaction Switch / Middleware and BSN Host/SystemGPRS Network and / or Fixed LineP.O.S TerminalCustomer and / or AgentBanking 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.Unique features:Transactions made via the POS terminal are online and realtime and not by batch processing.Most other agent banking services are only for collections purposes, not for banking transactions.
16 BSN Agent BankingOfficially launched on 27 Jan initial 200 agentsRecruitment of Retail Outlets as Agents5 Basic Banking ServicesInnovative use of technologyTowards Green Banking
17 Customers visit branches Towards Green BankingTraditional Banking Practice398 branchesForm-basedManual inputFixed lineLonger processCustomers visit branchesOnlineReal-timeBring the Bank to the CommunityFormlessAutomatedWireless GPRSSimplified processNew Banking modelBSN is able to lower its carbon footprint by reducing the number of brick and mortar branches, printing of forms and confirmation slips (which comes in 2-3 copies) thus contributing to a sustainable environment.
18 BSN Agent BankingOfficially launched on 27 Jan initial 200 agentsRecruitment of Retail Outlets as Agents5 Basic Banking ServicesSocio-economic impactInnovative use of technologyTowards Green Banking
19 Impact to the country: Fulfillment of the Central Bank’s Plan Impact to the country: Fulfillment of the Central Bank’s Plan* on Financial InclusionAfter Agent BankingBefore Agent BankingUnderserved184Served75490%10%TotalSub-District837Underserved449Served38846%54%TotalSub-District837*BNM’s 10-year Financial Sector Master Plan (2011 – 2020)
20 Impact to Agents and Community Additional foot-trafficReputation from affiliationAdditional revenueFinancial ManagementSynergistic partnership with BSNAccess to micro financing for business expansionCommunityAccess to Banking for the underservedSaves travelling time and costAlternative , convenient access for urbanitesNo queues, average transaction time = 7 secsBanking + Cashless PurchasesExtended banking hours (8.00am-10.00pm, 7 days a week)
21 Impact to BSN Revenue growth Transaction growth steadily increasing since launch as public awareness and acceptance of agent banking channel increasesIncreased visibilityWidespread locations of agents have increased visibility of the Bank more effectively than having a physical branch.New customer segmentWith 23% presence in urban areas, BSN agent banking is attracting the urban middle to high income to bank with BSN.
22 % Cost Savings – Agent Banking VS Branches Impact to BSNCost effective set up and operationsCostsBranchesATM-OffPremiseAgent Banking% Cost Savings – Agent Banking VS BranchesSet-up Cost(One-off)RM500,00 (€120,000)RM45,000(€10,700)RM3,000(€700)99.4%Yearly Operating CostRM250,000(€60,000)RM40,000(€9,500)RM1 ,000(€200)99.6%Jan 2012200 AgentsJune 20121,500 AgentsDec 20123,660 AgentsMay 20134,044 AgentsRapid expansion
23 Overall Performance as at 31st May 2013 Average Amount Per Transaction Impact to BSNOverall Performance as at 31st May 2013No. of Agents4,044Trx Count6.3milTrx ValueRM561mil (€134 mil)Average Amount Per TransactionTransaction TypesAverage AmountDepositsRM150 (€36)WithdrawalsRM160 (€38)Bill PaymentsRM80 (€19)
24 BSN Agent BankingOfficially launched on 27 Jan initial 200 agentsRecruitment of Retail Outlets as AgentsSustainable development5 Basic Banking ServicesSocio-economic impactInnovative use of technologyTowards Green Banking
25 BSN Agent Banking & Sustainable Development The NationCommunities & BSN agentsEnvironmentBSNSupports the Government ‘s National AgendasNational Blue Ocean Strategy (Cost effectiveness, rapid expansion, high impact)Financial InclusionExpansion & development of local communitiesBSN agents are also agents of growth in their communitiesKnowledge of IT and bankingReduces BSN’s carbon footprintMinimise need for brick-and-mortar branchesPromotes formless and cashless bankingPerpetual demand for basic banking services sustains the agent banking business modelBSN can continue to carry out its mandated roles more extensively