MICROCAPITAL BRIEF: Bank Simpanan Nasional (BSN) of Malaysia to Increase Banking Agent Network to 7,500

Bank Simpanan Nasional (BSN), a government-owned commercial bank that provides traditional and Islamic banking services in Malaysia, recently announced that it will increase its number of banking agents from approximately 5,000 to 7,500 by the end of 2014. Two-thirds of the new agents that are hired will be existing microfinance clients. The bank’s head of community services and senior vice president, Azaddin Ngah Tasir, reportedly cited a high demand for banking agents, stating that, “In the last two years, we have conducted a total of 13.5 million transactions valued at MYR 1.1 billion through our banking agents.” Services provided by banking agents include deposits, cash withdrawals, mobile airtime top-ups and bill payments.

Bank Simpanan Nasional (BSN) reported total assets of MYR 25.3 billion (USD 7.7 billion) and a total loan portfolio of MYR 14.3 billion (USD 4.3 billion) as of December 2012. BSN’s microfinance scheme recorded a growth of 32.6 percent to MYR 373 million (USD 114 million) in 2012. Further financial information for BSN is not available.

By Juan Blanco, Research Associate

About Bank Simpanan Nasional (BNS)

Bank Simpanan Nasional is a government-owned commercial bank that was founded in 1974 and is based in Kuala Lumpur, Malaysia. It offers loan and savings products, including Islamic banking services, through a network of 398 branches and 3,660 banking agents throughout the country. It reported total assets of MYR 25.3 billion (USD 7.7 billion) and total loan portfolio of MYR 14.3 billion (USD 4.3 billion) as of December 2012.

Sources and Additional Resources

[1] Malaysian Digest: “BSN’s Banking Agent Model Reaps Good Returns,” February 4 2014, http://malaysiandigest.com/business/486153-bsn-s-banking-agent-model-reaps-good-returns.html

[2] Bank Simpanan National (BSN) “Annual Report 2012,” http://www.mybsn.com.my/formdownload?formDownloadId=198

MicroCapital Story, February 3, 2014, “Malaysian Chinese Association Launches $16.4m Microloan Fund to Train, Finance

Entrepreneurs in Malaysia,” https://www.microcapital.org/microcapital-brief-malaysian-chinese-association-launches-16-4m-microloan-fund-to-train-finance-entrepreneurs-in-malaysia/

MicroCapital Story, December 13, 2011, “Bank Negara Malaysia (BNM) Launches MobileLINK Vehicle to Expand Outreach,” https://www.microcapital.org/microcapital-brief-bank-negara-malaysia-bnm-launches-mobilelink-vehicle-to-expand-outreach/

MicroCapital Story, June 10, 2011, “Malaysian Microfinance Institution (MFI) Amanah Ikhtiar Malaysia (AIM) to Disburse $164m in Rural Sarawak Region,” https://www.microcapital.org/microcapital-brief-malaysian-microfinance-institution-mfi-amanah-ikhtiar-malaysia-aim-to-disburse-164m-in-rural-sarawak-region/

MicroCapital Universe Profile: Bank Simpanan Nasional (BSN), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=bank+simpanan+nasional+%28BSN%29

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