Retail Banking
In order to sustainably increase its share of the retail banking business line and to be the first choice of the customers and insofar as is possible, the only service provider that customers prefer, İşbank deploys and manages its product, channel, price and communication mix in the most effective way.
The Bank closest to customers
As required by its approach of being “The Bank Closest To Customers”, İşbank defines all of the products, services and processes involved in its retail banking activities in line with the needs and expectations of its customers.
The Bank’s actions in the retail banking business line are informed by the principle of achieving sustainable and profitable growth by increasing the value that it offers its customers. It therefore develops strategies appropriate to the particulars of different customer groups.
İşbank engages in methodical and resolute efforts to expand both its deposit and loan volumes.
In addition to its extensive service network; customer-focused approach, highly qualified human resources, innovative products, services, alternative delivery channels that allow users to perform a wide range of transactions represent one of İşbank’s most fundamental competitive advantages in the business of retail banking.
Customer relationship management and customer analytics competencies
İşbank makes active use of analytical models such as “customer segmentation”, “credit card segmentation”, “lifetime value”, “customer churn” and “next best product” in order to better understand its broad customer base and to ensure that its relationships with customers are managed by allocating the most appropriate resources.
In order to sustainably increase its share of the retail banking business line and to be the first choice of the customers and insofar as is possible, the only service provider that customers prefer, İşbank deploys and manages its product, channel, price and communication mix in the most effective way.
Putting its customer analytics competencies to work, İşbank also makes integrated use of its branch, internet banking, call center, ATM, e-mail and SMS channels and conducts a large number of simultaneous campaigns in order to achieve more effective activation and sale of its retail banking products.
Banking relationships with customers that grow deeper
İşbank focuses on establishing and maintaining customer relationships that are both enduring and based on mutual productivity. İşbank has implemented its “stages of the relationship” programs and practices within the context of retail banking activities in a wide range of media and channels.
Customer-oriented “welcome” and “activation” activities are carried out at İşbank to ensure that relations with newly-acquired customers are conducted soundly. At the same time, customers are kept provided with information about İşbank products and services while a variety of reward campaigns and other activities are conducted in order to enhance customer retention and loyalty.
Based on the results of the customer churn model, which regularly quantifies the level of the Bank’s relationships with its customers, communication activities are carried out under the headings of “retention” or “recovery” as appropriate with the aim of encouraging customers to resume working more actively with the Bank by making them better aware of it.
İşbank stands by the individuals at every stage of life through “Life Stage Banking”.
İşbank engages in activities specifically targeted at children, young people and pensioners within the framework of its “Life Stage Banking” approach.
Children
The close bonds that the Bank’s publishing house İş Bankası Kültür Yayınları creates between İşbank and children, are further strengthened by two unique İşbank offerings: “Çocuk Hesabı” (“Child Account”), a banking account specially designed for children and “Kumbara Fonu” (“Money Box Fund”), one of Turkey’s most prestigious mutual funds.
Money Box Fund is the biggest equity fund in Turkey, controlling an 18.3% share of the assets under management by such mutual funds in the country.
“İlk İmza Hesabı” (“The First Signature Account”) is a bank account product intended for those in the 12-18 age group. It is specially designed to teach them to manage their own accounts and to encourage saving habits among teenagers.
Young Adults
“İş’te Üniversiteli Credit Card” (“University Credit Card at İş”) offered with “İş’te Üniversiteli Bankacılık Hizmet Paketi” (“University Banking Package at İş”), which was developed to answer all financial and banking needs during the young adult years, is considered to be the first step in the lifelong credit card relationship.
Having established a credit card relationship with someone during their student years, İşbank devotes particular attention to maintaining it after graduation by updating limits.
Pensioners
Having provided its customers with a broad array of retail banking products throughout their active working lives, İşbank also stands by them during their retirement years with its “Emekli Paketi” (“Pensioner Package”), a package of high added-value retail banking services specially designed to meet people’s needs at this time of their lives as well.
İşbank sustains the consistent growth in its deposits through efforts to procure resources through its extensive service network.
İşbank is Turkey’s leading privately-owned bank in terms of deposits.
İşbank sustains the consistent growth in its deposits through efforts to procure resources through its extensive service network. The increasingly stronger leadership of İşbank among privately-owned banks in terms of deposits is a clear indication of the confidence that the İşbank name inspires among customers.
At end-2011, İşbank’s total deposits amounted to TL 98.3 billion of which TL 40.7 billion were savings deposits. Giving İşbank deposit market shares of 15.0%(*) for savings deposits and 14.1%(*) for total deposits, this performance successfully maintained İşbank’s leading position among Turkey’s privately-owned banks. Indeed İşbank’s savings deposits amount to TL 10.3 billion more than those of its nearest competitor among privately-owned banks.
Innovative practices that make life easier
İşbank offers innovative retail cash management products that make life easier for its customers. Taking a proactive approach as it keeps track of its customers’ changing demands and needs; İşbank constantly improves its lineup of products and services.
Allowing its customers to pay the bills of 412 different enterprises without having to keep track of payment-due dates, İşbank offers innovative payment and investment management services with “Sınırsız Otomatik Servis” (“Unlimited Automated Service” - SOS) and “Maksimum Hesap” (“Maximum Account”) services.
Unlimited Automated Service (SOS) allows customers’ automated payments to be made from demand deposits to which the automated payment order is linked, as well as from liquid funds and overdraft accounts within customers’ investment accounts linked to these current accounts. In 2011 the number of SOS orders given to the Bank reached 903,923, which corresponds to a year-on rise of 36.5%. The number of orders submitted for the Maximum Account, a product that automatically uses available account balances to purchase money-market fund shares, increased by 65.6% and reached 659,846 last year.
İşbank handles salary and pension payments for 1.4 million people.
As of end-2011, İşbank mediated monthly salary and pension payments for about 1.4 million people, 250 thousand of whom are Social Security Institution (SGK) pensioners.
A variety of products and services that are made available exclusively to those who receive their salaries and pensions through İşbank contribute significantly to the loyalty which such customers feel towards the Bank.
In addition to handling salary payments for those who are actively employed, İşbank has also entered into an agreement with the SGK under which it serves as an intermediate for payments that are made to the corporation’s pensioners. “Emekli Paketi” (“Pensioner Package”) is a package of İşbank products and services with advantages that are specially designed to meet the needs of such pensioners.
İşbank's consumer loan portfolio consisting of housing, auto and general-purpose loans, increased by 31.1% and reached TL 18.6 billion.
The leading provider of consumer loans among privately-owned banks
İşbank’s consumer loan portfolio consisting of housing, auto and general-purpose loans increased by 31.1% as of end-2011 and reached TL 18.6 billion.
Housing loans tailored according to customer groups and preferences
In 2011, İşbank continued to strengthen its position in the housing loans market by means of products that are both innovative and pioneering.
The Bank further bolstered its position in the sector by keeping customers informed about projects under construction that had potential for home financing, expanding its relationships with realtors and offering products specially tailored according to customers’ needs.
In 2011 İşbank introduced its “Emeklilikte Evim Olsun”, which is a housing loan targeted at customers whose retirement age is no more than five years off, incorporates advantageous features enabling them to purchase their own homes.
“Tapusu Bizden Ev Kredisi” is another İşbank housing loan product that is primarily intended for wealthy customers but has appliances abroad. One of the features of this loan, which is the first of its kind in Turkey, is that borrowers are able to take care of their mortgaging and title transfer formalities through İşbank without having to go to a deeds registry themselves.
Having identified strong interest in housing purchases by foreign-national expatriates living in Turkey, in 2011 İşbank began offering such individuals housing loans along with other products such as credit cards, deposit and investment accounts.
One outcome of these and similar efforts was that İşbank registered year-on growth in the volume of its housing loans that was above the sector’s average.
New channels to deliver housing loans to customers
In 2011, housing loan applications filed via İşbank’s websites www.isbank.com.tr and www.isteevim.com.tr were made semi-automated and the pre-approved applications have started to be directed to branches.
Campaigns in cooperation with auto brands in 2011
İşbank organizes campaigns in collaboration with major automotive brands in Turkey for customers who require motor vehicle financing.
Such campaigns contributed favorably to İşbank’s performance in the motor vehicle-financing segment. At the year-end 2011, the outstanding balance of the Bank’s auto loans amounted to TL 1,149 million. This corresponds to a year-on rise of 30.2% and to a market share of 15.5%.(*)
Since the introduction of İşbank’s new “Bayinet” (“Dealernet”) application, customers who want to purchase a brand-new car from an authorized dealer can complete all the loan and other formalities on the spot at the dealership.
İşbank is the leader among private banks in terms of general purpose consumer loans.
Under the heading of general-purpose loan marketing at İşbank, mass media campaigns such as “Dört Dörtlük” (“Perfect”), “Tatil” (“Vacation”), “Bayram”(“Holiday”) and Yeni Yıl (“New Year”) loan campaigns were organized every month. Customers who submit “Hızlı Kredi” (“Quick Loan”) applications through the Bank’s interactive channels have kept being automatically directed to branches by the campaign management system.
In 2011 the Bank successfully preserved its position as the leader in general-purpose loans in the retail segment with an outstanding balance of TL 9.7 billion and a market share of 11.2%(*),(**). In the period of twelve months to year-end, the total volume of İşbank’s general-purpose loans (including overdraft accounts) increased by 34.5%, compared to the previous year.
Card payment systems with features encompassing a wide range of products
As of end-2011, with its 5,705,000 credit cards issued, TL 38.8 billion credit card turnover and with a 13.4% market share based on credit card turnover, İşbank is strongly positioned in Turkey’s market for card payment system products.
İşbank markets its credit cards under the “Maximum” brand, whose system has more than 220,000 active Maximum merchants. İşbank organizes special sector and firm based campaigns for merchants periodically. The features of the campaigns include additional and/or deferred installments, extra loyalty points (called “MaxiPuan”) and bonus products. Maximum campaigns, which are conducted on a seasonal, sectoral and individual firm basis, are planned so as to appeal to nearly every market segment and in many different sectors. Advantageous shopping options for cardholders and the positive impact of brand sharing cooperation make İşbank cards preferred among Maximum member merchants.
Work on making improvements in existing card payment systems continued in 2011. New features were also added to İşbank’s Bankamatik (ATM) cards with the aim of increasing their use by shoppers. Card visuals were renewed and new communication activities were launched.
Taking cost and effectiveness issues into account, İşbank focuses on benefiting as much as possible from newly emerging digital marketing channels (such as social media) in addition to the more traditional ones that it already uses intensively. Within this context, social media accounts have been opened for the Bank’s credit card “Maximum” and “Maximiles” credit card brands and these have started to be used for special campaigns, marketing and communication activities.
Since its introduction in 2008, the “contactless payment” feature has been available on a single type of card. In response to customer demand, changes have been made in all of the Bank’s cards so that this feature may be added to them as well.
In addition to its existing Maximum Card, İşbank also offers a range of payment card solutions capable of addressing customers’ different needs: Maximiles, on which its travel miles program is based, Maximum TEMA Card, for environment-aware customers and “MaxiPara Card”.
Credit card campaigns
İşbank segments credit card customers based on the stages of their relationship and organizes different campaigns to customers at different stages. Conducting regular customer analyses in order to promote the prevalent use of Maximum Card; İşbank organizes customized campaigns to increase customer loyalty.
Innovative services that also make saving possible through credit cards
Since the day it was founded, İşbank has been in the forefront of efforts to encourage thrift and to foster an awareness of saving among people in Turkey. The Bank contributes to these efforts through products and services that it creates in line with customers’ needs.
In 2011, İşbank launched “Maximum Tasarruf Harekâtı” (“Maximum Savings Campaign”), whose underlying theme is that credit cards which are known for the opportunities they provide for shopping can also be used for saving as well.
Under the Maximum Savings Campaign, attention is focused on products that encourage credit card customers to save such as “Kumbara Fonu” (“Money Box Fund”) and “Maximum Emeklilik” (“Maximum Private Pension”) campaigns and the Bank’s innovative “Üstü Kalsın” (“Keep the Change”) application.
An İşbank first: “Keep the Change”
“Keep the Change” is an innovative İşbank application that is available to all of its customers who have both credit card and investment accounts with the Bank. With “Keep the Change”, the balance due shown in the account statement is rounded up according to the customer’s instructions and the difference between the two amounts is added to their investment account. The advantage of “Keep the Change” is that it encourages customers to save without changing their spending habits.
At the year-end 2011, the Bank had received 103,741 “Keep the Change” orders by means of which TL 5 million worth of mutual fund shares were purchased.
Investment products campaigns in 2011
A number of new mutual funds were launched in 2011, such as a global commodity fund and, owing to strongly increasing demand for gold as an investment vehicle, a gold-backed principal-protected fund. These products featured among the capital market product communication activities which İşbank directed towards its retail customers all year long.
İşbank bond and bill issues were marketed by means of announcements made to existing and potential customers through mass and personalized channels. İşbank also further diversified the range of investment products on offer to its customers by intermediating a number of private sector corporate bond issues.
Convenience in OGS and KGS
İşbank provides motor vehicle owners with the security, convenience and specialized features of Automatic Pass-Through (OGS) and Card Pass-Through (KGS) devices, which facilitate bridge and highway toll payments.
İşbank supplies OGS devices free of charge through a campaign whose features are designed to enhance customer loyalty. As of year-end 2011, the number of OGS devices issued by İşbank was 820,975 while the number of KGS cards was 493,489.
Diversified credit card sales channels
In 2010 the Bank began outsourcing services in support of its credit card sales activities in order to increase both the productivity of marketing efforts and the frequency of customer contacts. In 2011, the Bank continued to outsource the mentioned services. In the second half of 2011, the Bank began selling Credit Card Support Insurance service through the same channel.
As a result both of attractive campaigns and marketing activities, the number of private pension accounts opened by İşbank increased by 14.7% and reached 417 thousand.
Synergetic relationships with subsidiaries that are leaders in the private pension and insurance product sectors
Anadolu Sigorta (a general insurer) and Anadolu Hayat Emeklilik (a life insurer and private pension company) are each a leader of their respective sectors. Through its synergetic collaboration with these two subsidiaries, İşbank provides its customers with a broad and effective range of products and services that include everything from elementary insurance to life insurance policies and private pension products.
With the collaboration of İşbank and Anadolu Hayat Emeklilik, Credit Life/Credit Support (Unemployment) Insurance service is provided to cash, vehicle and housing loan customers and Credit Card Support Insurance service to credit card customers.
Because they provide the basis for a necessarily long-term relationship with a customer, a private pension account is a product that significantly strengthens customer loyalty. İşbank branches, acting as Anadolu Hayat Emeklilik agencies, offer many life insurance and private pension products. As a result of attractive campaigns and marketing activities in 2011, the number of private pension accounts opened by İşbank increased by 14.7% year-on and reached 417 thousand as of the end of the year.
In coordination with Anadolu Sigorta, İşbank organized campaigns to sell elementary insurance products such as motor vehicle and house insurance, health insurance and personal accident insurance as well as policy renewals.
Working together, Anadolu Sigorta and İşbank explored ways to expand and diversify the insurance customer portfolio both by selling credit and loan customers policies appropriate to their risks and by strengthening sales channels. A number of projects that were drawn up as a result of these productive efforts were put into effect in 2011.
In 2011 İşbank conducted campaigns to sell elementary insurance products such as personal accident insurance, its “İş’te Nefes” health insurance policy that provides coverage for medical emergencies, home-owner’s insurance and medical malpractice compulsory professional liability insurance as well as policy renewals. These campaigns contributed to a rise in the Bank’s commission earnings on insurance products.
Moreover, studies have been continued for carrying out insurance transactions via alternative distribution channels. Accordingly, “İş’te Nefes” has been launched to give services to customers via the Internet Branch in addition to the sales of personal accident insurance via ATMs and personal accident insurance, auto insurance, natural disaster insurance (DASK) and compulsory traffic insurance via the Internet Branch. Personal accident insurance has been renewed regarding its collateral features and differentiation has been made for other insurance products in line with customer needs.
(*) Market shares are based upon the monthly industry data (including participation banks and development and investment banks) published by the Banking Regulation and Supervision Agency and are calculated excluding interest accruals and rediscounts.
(**) Includes overdraft accounts.