Bank Simpanan Nasional introduces Cisco-based virtual teller machines in Malaysia

Malaysia’s Bank Simpanan Nasional (BSN) is transforming products and services to appeal to digital-enabled customers by deploying virtual teller machines (VTMs) across 31 branches. Built on Cisco Unified Communication and Cisco Unified Computing platforms, the VTM helps enable virtual, real-time engagement between customers and tellers in any of the branches through a secure videoconferencing platform.

According to McKinsey, more than 700 million consumers currently use digital banking across Asia. With digital banking through desktops, smartphones, and tablets becoming much more common, consumers that prefer digital banking are more attractive to financial institutions as they tend to be more educated, have account balances that are two to three times higher, hold multiple banking products and are very active in online shopping.

“The VTM balances the work load between branches, enabling customers in busy branches to perform transactions assisted by tellers in less busy branches nationwide. Customers can now enjoy counter transactions without geographical limitations and experience more comfortable and personalised professional financial services,” said Datuk Adinan Maning, Chief Executive of Bank Simpanan Nasional.

By digitising banking services through VTMs, BSN is able to optimise technology to improve the customer experience and meet customer demand, while competing with emerging fintech startups. Virtualising the services provided by in-bank tellers enables BSN to increase resources for the customer, increase bank productivity and increase the efficiency of their organisation and the efficiency of service to their customers. Each BSN branch will have three VTMs, which are available from 9am to 4.45pm and situated at branches that have higher customer traffic.

Four hundred and fifty virtual tellers can attend to customers’ needs, provide advice on banking products and services, and handle account enquiries as well as loan applications. Security features include encrypted electronic signatures, thumbprint verification, and card identification.

“The financial services industry is not immune to competition from market disruptors. Non-traditional financial institutions are delivering new digital services that are personal, customised and convenient. Malaysia is committed to transforming the economy through digitisation, and two critical aspects of the Eleventh Malaysia Plan - innovation to drive revenue and productivity acceleration for sectoral growth - are addressed with this implementation at BSN.

Source: Cisco. Chai.

"By leveraging technologies from Cisco to drive a connected banking experience, BSN is leading the way in delivering greater value to their customers, appealing to the digital consumer, improving their productivity and efficiency, while increasing their revenue and customer base. The digitisation of bank branches is an important part of the omnichannel banking experience that transforms the customer’s transaction and increases their engagement with the bank,” said Albert Chai, Managing Director for Cisco in Malaysia.

Built on the Cisco Business Edition 7000 unified communications platform, which includes voice over IP, video through telepresence with Cisco DX 650 and Cisco Jabber for chat functionality and presence, the VTM allows BSN employees to connect to their customers at any time during branch operation hours. The scalable, open and interoperable technologies are hosted on the Cisco Unified Computing System foundation.

“In total, BSN is investing RM30 million to roll out the VTM that provides more than 80% of counter services, and is an improvement over current automated teller machines (ATMs) and cash deposit machines (CDMs). In the near future, the VTMs will also be offering additional services including account opening and debit cards, customer information management and bill payments. The VTMs may also allow extended banking hours with the placement of VTMs at public locations,” added Datuk Adinan.

Interested?

BSN's 9.1 million+ customers can enjoy the new banking service in 31 branches, with 93 VTMs already operational. BSN currently has 401 branches, 870 ATMs, and 387 CDMs across Malaysia. Read the list of virtual teller services

Read the WorkSmart Asia blog post about BSN's VTMs