Established in 1974 under the Ministry of Finance, Bank Simpanan Nasional (BSN)’s founding purpose is to promote savings and prudent financial management, particularly among underserved and unserved communities. With 387 branches, over 2,168 Ejen Bank (EB) agents and 10 mobile bank branches, it operates the largest physical network in Malaysia. Mandate and network in a changing environment According to chief operating officer Zarir Mohd Rawi (Zarir), this reach is no longer enough on its own. He explained that while BSN can serve many customers physically, it must also meet the demand for constant digital access, “We have to be able to serve customers anywhere, at any time. That means complementing our branches with digital channels that are accessible to all segments.” This shift is taking place amid a competitive retail banking market where both incumbents and digital-only banks are rolling out advanced mobile services. For BSN, the challenge is to deliver comparable functionality while ensuring that rural customers, older Malaysians and less tech-savvy users are not left behind. Mobile banking to bridge the physical and digital gap BSN launched its mobile banking app in February 2024, following a seven-month development process. The design emphasised inclusivity, with biometric login, two-factor authentication, and a simplified interface using large fonts for easier navigation. In a move that the bank highlights as part of its inclusive finance strategy, customers under 18 are allowed to open and operate accounts via the app. Zarir noted that the app was intended to “close the gap” between physical and online services, offering an alternative to in-branch and internet banking. Many of BSN’s customers live in rural or semi-rural areas, where travel to a branch can be time-consuming. By delivering core functions on mobile, the bank aims to reduce reliance on its physical counters. Adoption has been significant. Downloads increased from 450,000 at launch to 1.45 million by December 2024, with more than two million active users recorded in March 2025. Zarir pointed out that usage spikes coincide with events such as government aid disbursements, which BSN is mandated to handle, “On those days we can see tens of thousands of customers logged in at the same time.” The app has also reactivated dormant accounts, particularly in rural areas. Planned developments include electronic know-your-customer (e-KYC) onboarding, an e-wallet, and personal finance management features. Current app-store ratings—3.5 on iOS and 4.0 on Android—reflect broad user acceptance across diverse segments, and BSN is incorporating user feedback into its update cycle. Bella: AI-enabled customer support In January 2025, BSN introduced Bella, a chatbot developed with Yellow.ai, to address the high volume of routine enquiries handled by its contact centre. Available on the bank’s website and internet banking without the need for login, Bella supports both Bahasa Malaysia and English. Zarir described it as a tool to make basic information more accessible, “Many customers just need quick answers on products or services. Bella lets them get that information instantly, without having to wait for a call to be answered.” Bella responds to queries within seconds, handling about 13,000 a month and deflecting around 400 per day—roughly 8% of inbound contact volume. This allows human agents to focus on more complex cases. The chatbot’s responses are based on BSN’s internal product and policy information to reduce the risk of inaccurate or irrelevant replies. Customer satisfaction is reported at around 70%. In some cases, users interact with Bella informally, asking light-hearted or personal questions, which the bank sees as an indication of user comfort with the channel. Planned expansion to WhatsApp and Facebook Messenger is intended to reach customers who are more active on messaging platforms than on mobile banking apps. RPA to speed up financing processes BSN began using robotic process automation (RPA) during the rollout of the Account Support Facility 2 (FSA2), which enabled Employees Provident Fund (EPF) members to access personal financing linked to their Account 2 withdrawal eligibility. Submission volumes quickly overwhelmed manual processes, prompting the bank to adopt RPA for the first time. The technology has since been applied to three retail financing processes. In personal financing disbursements, daily application processing capacity rose from 30 to 105 cases—a 250% increase—enabling up to 3,200 per month. Redemption and settlement processes have been reduced from 20 minutes to four, with volumes increasing from 32 to 195 accounts per day and turnaround times cut from a week to same-day. Advanced payment refunds now take two minutes instead of 30, with same-day settlement replacing a three-day turnaround. Zarir said the changes are not just about efficiency, “Faster processing means customers in financial difficulty get access to funds or clearances more quickly.” The RPA programme is managed through a centre of excellence to maintain governance and scalability, with plans to integrate artificial intelligence (AI) into process automation for more complex decision-making. Digitising microfinance support BSN is the market leader in microfinance, providing loans of MYR 50,000 to MYR 100,000 to small retailers and traders. Zarir highlighted that technology is increasingly important in this segment, “We are helping micro-entrepreneurs move away from cash and adopt digital tools, which also helps us collect the data needed to assess their creditworthiness.” The bank’s eBiz channel and partnerships with digital platforms encourage merchants to use quick response (QR) code-based payments and maintain digital records of transactions. This not only improves their business operations but also strengthens their credit profiles, making it easier for them to qualify for larger financing from BSN or other banks. Evolving the transformation blueprint BSN’s current transformation plan maps the digital journey from customer onboarding to servicing. Key upcoming initiatives include e-KYC, a digital financing channel with straight-through processing, AI-driven document management, and expanded payment functionality via an e-wallet. The bank is also moving towards cloud adoption, with multi-cloud strategies under consideration. Zarir acknowledged that the plan will need to adapt frequently, “Technology changes quickly, so our approach has to be flexible. The aim is to stay resilient and maintain service availability at all times.” As BSN’s digital services expand rapidly, the bank is also working to further enhance app user experience, deepen measurement of Bella’s customer interactions, and capture the tangible value created by automation. BSN’s trajectory reflects the balancing act of a state-mandated institution—broadening access to modern banking services while managing operational efficiency and maintaining financial prudence.
