İŞBANK ANNUAL REPORT 2014

ACTIVITIES

İŞBANK

ANNUAL REPORT 2014

Retail Banking

In 2014, İşbank continued to achieve

strong growth in retail loans, deposits

and investment products.

As of December 2014, the sector’s total

retail loan portfolio, consisting of consumer

loans and credit cards, increased by 7.1%

compared to last year, rising to TL 342.6

(*)(**)

billion. Outperforming the sector

growth rate, İşbank increased its retail loan

portfolio by 10.2%, to TL 42.4

(**)

billion in

the same period.

Engaging in customer-oriented business

activities with a sustainable profitable

growth strategy, İşbank keeps the customer

rights at the forefront of the Bank’s

operations and adopts a quality-oriented

approach while providing services and

products.

İşbank’s main competitive advantages in

retail banking include:

extensive branch and Bankamatik

network throughout the country,

highly qualified and well trained human

resources,

wide product range constantly enriched

with innovative solutions,

competency in customer analytics and

campaign management,

strong technological infrastructure, and

channel diversity in providing service.

Customer management activities

İşbank builds mutual benefits-based and

long-term relationships with customers.

The Bank conducts “welcome” and

“activation” activities in order to ensure

healthy relationships with newly acquired

customers under the Bank’s stages of

customer program implemented for

this purpose. Under the “promotion”

and “loyalty” activities, customers are

regularly informed of İşbank products

and services and offered a variety of

reward campaigns, while a range of other

activities are also carried out. Based on

the results of the customer churn model,

which systematically quantifies the level

of the Bank’s relationships with customers,

communication efforts take place under the

stages of “retention” and “win back”.

Retail banking customers are managed

under 24 sub-segments based on their

current life cycle, relationship stage with

the Bank, channel utilization and their

needs and expectations. İşbank develops

value recommendations that are specific to

these sub-segments and offers them to its

customers.

Developments in the customer analytics

and campaign management

Throughout 2014, İşbank continued to

employ active use of analytical models

including:

customer segmentation,

credit card segmentation,

lifetime value,

customer churn,

propensity to buy.

Equipped with an integrated multi-channel

campaign management infrastructure,

the Bank uses its branch network, Internet

Banking, Call Center, Bankamatik (ATM),

e-mail and SMS channels in an integrated

fashion; many promotional campaigns

are conducted simultaneously across

all channels. İşbank has the capability to

performmulti-channel, multistage and

personalized customer interactions and

to conduct real-time campaigns based on

instant customer transactions.

The Bank’s marketing optimization

application, which became operational

in 2013 to provide the right customer

with the right offer at the right time,

based on analytical models and customer

contact rules, was further developed and

continued to be used extensively in 2014.

In recognition of the high quality of this

application, İşbank received the “2014 CRM

Excellence Bronze” award in the “Integrated

Marketing Performance” category from

Gartner, one of the world’s premier

research and advisory firms. İşbank is the

first Turkish bank to be rewarded with the

“CRM Excellence Award” in this category. In

addition, the Bank won the “Outstanding

Innovation” prize from Global Business

Excellence, a world renowned competition,

for the marketing optimization application.

The Cashier Offers Application, which

was developed to better utilize the sales

potential of cashier services at İşbank

branches, started being used at all mixed

branches. This application enables

customer information updates that take

place in person at the cashier to be used as

a sales opportunity for easy selling products

and in line with sales offers screened on a

customer basis. For more complex products,

customers are directed to the sales team.

İşbank: Securing the highest customer

satisfaction in retail banking for the last

5 years

According to the Turkish Customer

Satisfaction Index conducted by the Turkish

Society for Quality, İşbank ranked first

among private banks in the “Retail Banking”

and “Credit Card” categories. Thereby,

the Bank achieved the highest customer

satisfaction in Retail Banking for the fifth

time in a row, and, in total, placed first for

the sixth time. Moreover, the Bank placed

first with “Maximum Card” in the “Credit

Card” category for the fourth time.

In addition, the biggest prize, namely

the “Silver Effie,” in the “Card Payment

System” category at the 2014 Effie Turkey

Advertising Effectiveness Competition,

went to İşbank’s “Maximum Card is also

Museum Card” promotional campaign.

In 2014, İşbank became the first Turkish bank to be

honored with Gartner’s “CRM Excellence Award,”

in the “Integrated Marketing Performance” category.

(*)

Market shares are calculated using monthly sector data published by the Banking Regulation and Supervision Agency. Interest

accruals and rediscounts are not taken into account. Participation banks are excluded.

(**)

Includes overdraft accounts.