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Digitising Malaysian banking with virtual teller machines: Cisco

AvantiKumar | Jan. 6, 2016
Bank Simpanan Nasional recently announced it has taken kiosk banking in Malaysia to a new level with the help of technology partners.

Albert Chai Country Manager for Cisco in Malaysia - done 

Photo - Albert Chai, Country Manager, Cisco Malaysia.


Following Bank Simpanan Nasional's recent announcement that it has pioneered the Virtual Teller Machine (VTM) in Malaysia, one of the technology partners, networking solutions provider Cisco, said the omnichannel initiative was in tune with the Eleventh Malaysia Plan.

During a launch event late December 2015,  Bank Simpanan Nasional (BSN) chief executive Datuk Adinan Maning said that BSN's Virtual Teller Machine (VTM) service will allow its tellers across Malaysia to serve customers in multiple locations remotely and concurrently via live virtual banking operations.

Adinan said the VTM balanced the work load between branches, allowing 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 a more comfortable and personalised professional financial services," he said.

Later, Albert Chai, Cisco Malaysia country manager, said the Cisco Unified Communication and Cisco Unified Computing platforms were used to allow VTM to enable virtual, real-time engagement between customers and tellers in any of the BSN's 31 branches, through a highly secure and immersive video platform.

Chai said virtualising the services provided by in-bank tellers has helped BSN to increase resources for the customer, as well as enhance bank productivity and most importantly, increase the efficiency of their organisation and the efficiency of service to their customers.

Each BSN branch will have three VTM machines and these self-service kiosks that are supported by 450 virtual teller agents placed to assist their colleagues at branches that have higher customer traffic.

"The financial services industry is not immune to competition from market disruptors," Chai said. "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."

 Digitisation of branches

"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 Omni channel banking experience that transforms the customer's transaction and increases their engagement with the bank," he said.

Chai said Cisco's Business Edition 7000 unified communications platform included voice over Internet Protocol (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 Cisco Unified Computing System foundation.

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.

By digitising banking services through VTM machines, BSN is able to optimise technology to improve the customer experience and meet customer demand, while competing with emerging fin-tech start-ups. "In total, BSN is investing RM30 (US$6.92) million to roll out the VTM that provides more than 80 percent of counter services, and is an improvement over current automated teller machines (ATM) and cash deposit machines (CDM). In the near future, the VTMs will also be offering additional services including Account Opening and Debit Card, Customer Information Management and Bills Payment. The VTMs may also allow extended banking hours with the placement of VTMs at public locations," said BSN's Datuk Adinan.

BSN's new banking service became live on December 2, 2015, in 31 branches, with 93 VTMs.


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