Globalisation and the experience
of proximity banking
“Savings banks: the retail gateway to a global market.
Driving sustainable development”
Dato’ Abdul Azim Mohd Zabidi
Chairman, Bank Simpanan Nasional, Malaysia
21 – 22 September 2006, Kuala Lumpur
MALAYSIA
ECONOMIC STATISTICS
BNM Q2 2006 Aug report
Country’s
economy is
expected to
benefit from
global growth.
2006 GDP is on
target to
increase by 6%.
Growth mainly in services and manufacturing
sector.
With the launch
of 9th Malaysia
Plan, 2007 GDP
is also expected
to continue to
increase by 6%
MALAYSIA
ECONOMIC STATISTICS
2005 population
is at 26.13 million
of which 10.15
million is on
employment.
Unemployment
rate is at 3.28%.
Projected per
capita income 2006 at
USD11,871 and
2007 at
USD12,666
Department of Statistics, Aug 2006
FINANCIAL ENVIRONMENT
Retail based financial institutions :
1. Commercial banks
 13 locally incorporated foreign banks
 10 local banks
2. Islamic banks
 8 local Islamic banks
 2 foreign Islamic banks
3. Development Financial Institutions (DFIs)
 3 that serve retail customers
Globalisation & Further Liberalisation
of Financial Market in Malaysia
Bank Negara Malaysia (BNM)’s
Financial Master Plan is to
evolve the Malaysian financial sector into a world class one; in a
way that can best serve the nation. In its final phase, focus is on
liberalisation and the following have been done:1. Locally incorporated foreign banks are allowed to open 4 more
branches in 2006.
2. Entry of new players, banks and investment houses.
3. Promotion of technology to increase efficiency and
effectiveness.
4. Promotion of sophisticated products.
5. Promotion of Islamic banking.
Globalisation & Further Liberalisation
of Financial Market in Malaysia
Promotion of Islamic Banking
Some key initiatives have been the establishment of :
1. IFSB (Islamic Financial Services Board ) and,
2. INCEIF ( International Centre for Education in
Islamic Centre )
Globalisation & Further Liberalisation
of Financial Market in Malaysia

Challenges to existing players in the financial
market.

International players will target the lucrative
retail segment of the population. There will be
intense competition for this segment.

This may prompt commercial banks to move
into other areas such as those served by BSN.
Bank Simpanan Nasional
MALAYSIA

Gazetted by Parliament in Aug 1974, through the
Bank Simpanan Nasional Act, 1974.

BSN as a statutory body is regulated under the
1974 Act & reports to the Ministry of Finance
(MOF).

In 2002, BSN was categorised as a development
bank & came under the supervision of Malaysia’s
Central Bank, Bank Negara Malaysia.
BSN’s Unique Role
Under the 1974 Act
To promote & moblise savings, particularly from
small savers;
 To provide means for savings by the general
public;
 To promote the interests of its depositors and
other customers
 To utilize the funds for investments, including
financing for the economic development of the
nation.

All retail deposits placed with BSN are guaranteed
by Government of Malaysia.
Our Identity

Symbol of a “coin tree” denoting a people’s bank
whereby no amount is too small for savings.

The coin tree or “pohon pitis” originated from
Malaya’s history when in 1903 the State of Kelantan
paid tribute to the State of Siam by bearing a coin
tree made of tin metal.

In the modern interpretation of this logo, there are 13
coins made in gold representing the 13 states of
Malaysia & describing a nationwide provision of banking
services.
BANK SIMPANAN NASIONAL
More than 300 branches and 600 ATMs
Network Around Malaysia
Network of
382
branches
and 621
ATMs
nationwide.
Joining
MEPS ATM
network,
our
customers
have more
than 1,000
ATMs to
use.
BANK SIMPANAN NASIONAL

Brand Recognition

Well known amongst:
 School children
 Pensioners
 Government / semi government
employees (e.g. police and army)
Opportunities for BSN
Business Focus:
Capitalise on close relationship built over the
years with our niche customers (government
/ semi-government employees, school
children, residents in rural areas).

Grow Islamic banking offerings & micro
financing asset base.

Provide more competitive pricing mechanism.
Opportunities for BSN
Organisational focus:
Significantly increase speed and efficiency of
delivery channels to increase customer
satisfaction.

Capitalise on available technology establishment of mobile banking or automated
banking environment.
Opportunities for BSN
People Focus:
Elevation of human capital – enhancing
education both amongst the public and
banking personnel, creation of awareness and
increasing level of competency.

Greater empowerment – to steer staff
towards greater confidence, self reliance and
empowerment which are necessary in face of
greater competition.
Opportunities for BSN
New Business Areas:
Islamic Insurance – Takaful. Partnering with a
well known and respected insurance company
to form Prudential BSN Takaful Bhd.