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BSN: 50 years of financial inclusiveness

KUALA LUMPUR: Bank Simpanan Nasional (BSN) celebrated its golden jubilee at the Malaysia International Trade and Exhibition Centre recently, marking five decades of advancing financial inclusiveness and community development.

BSN chairman Datuk Seri Awang Adek Hussin said the bank, established in 1974 as a successor to the Post Office Savings Bank, has grown its customer base from 2.5 million savers at inception to nearly nine million today.

With 387 branches, 2,300 banking agents, and 10 mobile branches, the bank now has a presence in 97 per cent of the country, which includes delivering essential financial services to underserved and rural communities.

"BSN is proud to lead in financial inclusion, supporting microentrepreneurs with nearly 100,000 microfinancing accounts valued at RM2 billion, representing 64 per cent of the nation's total microfinancing," Awang Adek said.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi and Finance Minister II Datuk Seri Amir Hamzah Azizan also attended the event.

Awang Adek highlighted BSN's critical role in disbursing government aid, including Sumbangan Tunai Rahmah (STR) to nine million recipients and Sumbangan Asas Rahmah to 8.4 million Malaysians.

To further expand its reach, BSN plans to launch four additional mobile branches, focusing on Sabah and Sarawak.

"The bank's iconic Premium Savings Certificate (SSP) scheme has attracted almost four million depositors with RM5.5 billion in savings. Since its inception, the SSP has created 105 millionaires, with two more to be announced by year-end," he added.

Awang noted that BSN's extensive service coverage, microfinancing initiatives, and focus on affordable housing loans reflect its alignment with the Madani economy's goal to "increase the ceiling and raise the floor".

"I do not see any other bank in Malaysia more deserving of being recognised as the Madani Bank than BSN," he said.

In its drive to modernise rural commerce, BSN has launched the Cashless Communities initiative, enabling 4,000 merchants, including 1,700 hawkers, to adopt digital payments.

The latest rollout was officiated in Kabong, Sarawak, earlier this month.

Awang Adek also shared numerous accolades that BSN has garnered, including the Graduates' Choice of Employer Award (2024) for development banking, the Excellence Award for Community Banking in Malaysia (2024) and Best Islamic Retail Banking Window in Malaysia (2024) by IRBA Dubai.

Other awards include the Top FI Partner in SME Category (2024) by CGC, the Top Investment House in Malaysian Ringgit (2024) by The Asset in Singapore and the Malaysia Best Employer Brand Awards (2024).

"In an increasingly challenging and competitive business environment, we cannot avoid safeguarding the interests of all stakeholders, particularly our strategic partners who continue to provide support and trust to BSN.

"Their contributions are significant and highly valued by us. Therefore, I would like to express my gratitude to Permodalan Nasional Bhd, as well as to Petronas, the Employees' Provident Fund, and the Accountant-General's Department," he said.

Meanwhile Zahid, who used tohelm BSN in the past, has called for the bank to establish a strategic partnership with his ministry to empower rural communities and promote financial literacy.

This partnership, he said, would aim to improve their financial management and well-being.

"BSN, with assistance from the Rural and Regional Development Ministry (KKDW) can identify target groups, such as rural women, youth and farmers, to offer tailored microfinancing schemes.

"It could also implement educational programmes in rural areas to enhance understanding of personal finance, savings, investment, and access to formal banking services," he said.

He added that the bank could introduce accessible education loans for rural youths, particularly those pursuing technical and vocational education and training or entrepreneurship in the halal industry, fostering local talent and economic growth.

With the ministry's support, BSN could expand its reach by opening more branches or registered agent banking facilities in rural and remote areas, enabling residents to perform transactions without travelling to urban centres.

"These proposals are part of broader efforts to collaborate between KKDW and BSN.

"I firmly believe that through a comprehensive approach, BSN can help KKDW achieve its goal of sustainability and inclusively improve the rural economy."

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