Six decades as a development financial institution, its primary aim is to raise the economic prosperity by consistently supporting the Financial Inclusion Agenda to provide suitable, affordable and quality financial services to all aspects of society.
Bank Rakyat has always prioritized the needs of the people, reaching out as a supportive partner that is able to surmount differences.
The bonds that have connected us to our stakeholders for six decades have been a platform for us to continue to popularize our banking services in upholding our position as the number 1 progressive Islamic cooperative bank in Malaysia.
Bank Rakyat, which literally means the People’s Bank has stood up too many challenges, the most important being serving Malaysians well over the last six decades.
Bank Rakyat never wavered from its cause with a bold mission of financial inclusion.
The bank was established in 1954, a time which was the formative period preceding the nation’s independence. From the very beginning Bank Rakyat’s aim was to help the low-income earners gain access to capital and increase their income. There was also a strong realization on the need to help rural communities to free themselves from the shackles of poverty and enjoy economic prosperity.
Today, Bank Rakyat the largest Islamic cooperative bank in Malaysia, continues to serve and enrich the lives of millions, to create a progressive society.
The Bank offers inclusive Islamic Banking facilities for the cooperative movement in addition to providing a full range of banking and financial services not only to its cooperative members but also for the public.
As a Development Financial Institution, its primary aim is to raise the economic wellbeing of its customers and members by providing financing facilities at reasonable rates for agriculture, production, industrial, transportation, housing, businesses, and other beneficial activities.
In addition to the existing developmental and mandate Initiatives, the Bank consistently supports the Financial Inclusion agenda introduced by Bank Negara Malaysia to provide suitable, affordable and quality financial services to all segments of society in contributing to a balanced and sustainable economic growth and development, general public access to financing, financial services, financial redress and financial information.
Bank Rakyat has always prioritized the needs of the people, reaching out as a supportive partner that is able to surmount differences.
The bonds that have connected us to our stakeholders for six decades have been a platform for us to continue to popularise our banking services in upholding our position as the number 1 progressive Islamic cooperative bank in Malaysia.
Bank Rakyat, which literally means the People’s Bank has stood up too many challenges, the most important being serving Malaysians well over the last six decades.
Bank Rakyat never wavered from its cause with a bold mission of financial inclusion.
The bank was established in 1954, a time which was the formative period preceding the nation’s independence. From the very beginning Bank Rakyat’s aim was to help the low-income earners gain access to capital and increase their income. There was also a strong realization on the need to help rural communities to free themselves from the shackles of poverty and enjoy economic prosperity.
Today, Bank Rakyat the largest Islamic cooperative bank in Malaysia, continues to serve and enrich the lives of millions, to create a progressive society.
The Bank offers inclusive Islamic Banking facilities for the cooperative movement in addition to providing a full range of banking and financial services not only to its cooperative members but also for the general public.
As a Development Financial Institution, its primary aim is to raise the economic wellbeing of its customers and members by providing financing facilities at reasonable rates for agriculture, production, industrial, transportation, housing, businesses and other beneficial activities.
In addition to the existing developmental and mandate Initiatives, the Bank consistently supports the Financial Inclusion agenda introduced by Bank Negara Malaysia to provide suitable, affordable and quality financial services to all segments of society in contributing to a balanced and sustainable economic growth and development, general public access to financing, financial services, financial redress and financial information.
Focusing on Financial Inclusion, the Bank currently provides several service channels, such as:
• Bank Bergerak and Ar-Rahnu on Wheels (ARROW)
• Agent Banking (Rakyat C.A.R.E.)
• Rakyat Xcess and Ar-Rahnu X’Change ( Xcess COMBO)
• SME and Cooperative Business Centre
• Digital Platforms
• Card Business
Bank Rakyat stands committed to its vision by enabling people to improve their quality of life through inclusive and innovative financial product offerings.
The Bank operates in rural and urban areas of the country, seeking to alleviate poverty by helping to improve income and quality of life through various financing programs, initiatives and partnerships.
To date, Bank Rakyat has 148 branches with more than 985 automated teller machines (ATMs) and cash deposit machines (CDM) as well as 27 Ar-Rahnu X’Change outlets nationwide.
Supporting SME and Cooperative Ecosystem
As an agency under the Ministry of Entrepreneur Development and Cooperatives (KUSKOP), Bank Rakyat is committed in supporting the government’s efforts to promote SME development and to uphold the Dasar Keusahawanan 2030 (DKN 2030) aspiration. To this end, various initiatives and strategies have been crafted out under the umbrella of its five-year strategy BR25 to support SME development in the country.
In line with our BR25 goal to improve outreach towards entrepreneurs nationwide and increase access to the Bank’s financial assistance and solutions, the Bank’s Business Banking Centre has been established as a one-stop center that provides holistic advisory and financing services for micro, small and medium enterprises and cooperatives.
To date, there are 10 Business Banking Centres in the following regions: Kuala Lumpur/Putrajaya, Selangor, Melaka/Negeri Sembilan, Perak, Kedah/Perlis/Pulau Pinang, Kelantan/Terengganu, Johor, Sarawak, Sabah and Pahang.
We fortify the cooperative sector’s growth through facilitating cooperative and entrepreneur development programmes that provide financial assistance and advisory services. These enhanced business operations, support business expansion and build resilience in cooperative businesses.
Financial performance
The Bank, which went through various transformations over the years, has since grown to become one of the fastest-growing Islamic banks in Malaysia with more than RM115 billion in assets as at the end of December 2021.
Bank Rakyat’s transformation in 2002 from a conventional banking system to a banking system based on Syariah has enabled the Bank to record encouraging profits year after year.
In spite of the COVID-19 pandemic, Bank Rakyat managed to maintain an impressive financial performance with a pre-tax and pre-zakat profit of RM1.63 billion as at the end of December 2021.
Supporting Development Through a Sustainable Focus
Bank Rakyat recognises the significant responsibility it owes to the community – not just in this country but the world as a whole – and is determined to become a champion of sustainable development.
For Bank Rakyat to integrate sustainability successfully and effectively across all operations, it was imperative to establish a strong sustainability governance structure, with clear roles and responsibilities for all parties.
The Bank Rakyat Sustainability Framework and Policy (BRSFP) was developed in accordance with a regulatory requirement, as well as in reference to external initiatives, standards and guidelines such as Bank Negara Malaysia (BNM) Implementation Guide for Value-Based Intermediation (VBI), BNM Climate Change and Principle-based Taxonomy (CCPT) and Task Force for Climate-related Financial Disclosures (TCFD) recommendations.
Upon the development of BRSFP, a Sustainability Task Force was established with representatives from various business units to ensure clarity of sustainability ownership, roles, responsibilities, targets and reporting structure.
The Bank also made strides in the following initiatives under the BR25 Sustainability Blueprint agenda: namely,
Bank Rakyat Entrepreneur Leadership Series
To ensure that Bank Rakyat can successfully integrate sustainability across its operations and effectively, it is imperative that the Bank initiate the Bank Rakyat Entrepreneur Leadership Series program namely RAKYATpreneur and Bank Rakyat UNIpreneur.
The Bank Rakyat Entrepreneur Leadership Series is a philanthropic initiative which uplifts the socioeconomic status from underserved backgrounds with high potential of growth to progress across the value chain. The Bank provided seed funding, capacity building and coordinated assistance to grow their business.
BR Didik Digital
BR Didik Digital is a philanthropic initiative to provide underprivileged students with better access to education via online learning and to improve the ecosystem of home schooling with proper tools and data connectivity.
The initiative was a collaboration between Bank Rakyat and Yayasan Telekom Malaysia and funded by Bank Rakyat’s Zakat funds. A total of 210 tablets were distributed among primary and secondary schools across Malaysia, and 740 units of SIM cards were provided to primary and secondary schools as well as several MARA Junior Science College (MRSM).
BaktiRAKYAT
Bank Rakyat also formalised its employee’s volunteerism initiatives through the BaktiRAKYAT programme. The BaktiRAKYAT Pilot programme was executed in Perak, Sabah, Johor and Pahang on 11 December 2021.
BaktiRAKYAT aims to further strengthen the rapport between the Bank and surrounding communities, leveraging on the manpower of Bank Rakyat’s personnel, with the focus on three key areas of focus, namely community, environment and public service.
The programme is aligned with the Bank’s Sustainability Framework to develop activities and initiatives that prioritise sustainable economic progress, drive profit, and contribute to the sustainable development of communities.
Community Outreach Programme
Bank Rakyat is committed to contributing to the UN 2030 SDGs agenda by prioritising six goals that are directly connected with the Bank’s operations which has been outlined in Bank Rakyat’s five-year Business Plan. The six goals are:
Goal 1: No poverty
Goal 2: Zero hunger
Goal 3: Good health and well-being
Goal 4: Quality education
Goal 6: Clean water and sanitation
Goal 17: Partnerships for the goals
In line with these goals, Bank Rakyat started its Nuri Nutrisi, campaign which aims to create a sustainable life for the local community with various efforts to improve the nutritional status of underprivileged school children, as well as to protect their social needs.
On top of that, to ensure sustainability of the programme, the Bank initiated the Nuri Nutrisi Farm project where we worked with schools and universities to install vegetable gardens and urban farms for continuous supply of nutritious food for underprivileged students.
Bank Rakyat’s Nuri Nutrisi programme has been voted as the winner of a number of CSR awards to date, due to its holistic impact and sustainable structure. The programme is recognized for its multi-fold benefits in health, education and welfare of students.
Asked on what immediate actions would be taken, newly – appointed Chief Executive Officer Dr. Mohammad Hanis Osman said: “The Bank’s vision and mission have always motivated us to work harder for the Bank’s stakeholders, members, and customers. As a result, my immediate action for the Bank to keep that approach is to have an established organisational purpose, which can improve clarity and communication for the business by showing clear lines of responsibility and the position of each person inside the Bank.
Dr. Mohammad Hanis added being a leader of an organisation is doing what we think is right and to the best of our knowledge. In other words, doing the right thing to the best of our ability; as we grow, we improve. It’s a journey and it may take five or even 10 years to get there. I always believe that if we are going to do business well, we have to do the right thing and do it the right way. I believe that this will create value for all parties, which ultimately would impact returns for the Bank’s members and stakeholders over time.
On the evolution of the banking landscape in terms of digital banking, fintech, ESG, he said: “The Bank Rakyat 2025 (BR25) five-year strategic plan introduced in 2020 is to turn Bank Rakyat into a more future-ready organisation. The BR25 aspires to connect prosperity by emphasising on digitalisation, great customer experiences, human capital, sustainability as well as Shariah leadership efforts.
Dr. Mohammad Hanis added for Bank Rakyat, the mandate given by the Board of Directors have always been our driven goals where Bank Rakyat will remain committed to its mission and vision.
