2017 ANNUAL REPORT
TÜRK EKONOMİ BANK’S PERFORMANCE IN 2017
Presented below is a summary of TEB’s shares of the banking industry’s basic indicators as of 31 December 2016 and 31 December 2017 together with information about changes in those shares.
Looking at the highlights of the Bank’s performance in 2017 as compared with that of 2016 we see that:
(million TL) |
31.12.2017 |
||
|---|---|---|---|
TEB |
Sector |
TEB’s Share (%) |
|
Total Assets |
85,758 |
3,257,819 |
2.63 |
Total Loans |
63,291 |
2,154,280 |
2.94 |
Total Deposits |
55,577 |
1,804,766 |
3.08 |
Number of Branches |
504 |
11,585 |
4.35 |
Number of Personnel |
9,464 |
208,280 |
4.54 |
Source: Sectoral figures taken from BRSA’s December 2017 monthly bulletin
TEB’s activities were recognized and rewarded in Turkey and abroad also in 2017.
DEPARTMENT |
CATEGORY |
AWARD |
|
|---|---|---|---|
RETAIL BANKING |
|||
2017 Communitas Awards |
Leadership in Community Service and Corporate Social Responsibility |
Leadership category |
|
2018 Communitas Awards |
Corporate Social Responsibility/New Category |
Corporate Social Responsibility |
|
PR Daily's Corporate Social Responsibility Award |
Social Impact |
Honorable Mention |
|
DIGITAL BANKING |
|||
EFMA & SAP SME AppsBank Awards |
TEB-CEPTETEB Best Mobile Banking Application |
Best |
|
Financial Innovation Awards |
CEPTETEB-Best Payment Innovation |
Best |
|
WebAward (CEPTETEB website) |
CEPTETEB 2017 Bank Standard of Excellence, Financial Services Standard of Excellence |
Standard of Excellence |
|
WebAward (TEB Private Digital Museum Website) |
Best Toy & Hobby Website |
Best |
|
CALL CENTER |
|||
Contact Center World |
Best Use of Technology |
Gold Medal (1st place) |
|
Contact Center World |
Best Contact Center |
Bronze Medal (3rd place) |
|
Contact Center World |
Best Customer Service |
Bronze Medal (3rd place) |
|
CORPORATE BANKING |
|||
Stevie International Business Awards 2017 |
Customs Duty Payment with SMS |
|
|
Best Business Awards |
Virtual Account |
|
|
BNP Paribas IFS |
Fast Pay |
|
|
SME BANKING |
|||
2016/2017 European Business Awards |
Customer-Focus (with Women Banking) |
Ruban d’Honneur (Ribbon of Honor) |
|
2017 Global Banking Alliance for Women |
Highest Engagement (with Women Banking) |
Highest Engagement |
|
HUMAN RESOURCES |
|||
Top Employer Turkey 2017 |
TEB has been registered as the “Top Employer” in Europe and in Turkey for 5 consecutive years. |
|
|
Top Employer Europe 2017 |
TEB has been registered as the “Top Employer” in Europe and in Turkey for 5 consecutive years. |
|
|
IRB Innovation Talent Award |
TEB Atelier Transdisciplinary Innovation Platform |
|
|
Great Place To Work |
The only bank that made it to the list of top employers |
|
|
BRAND & COMMUNICATION |
|||
Communicator Awards |
Award of Distinction: Digital Hopscotch |
|
|
Communicator Awards |
Award of Distinction: We Are Tennis Fan Academy Turkey |
|
|
Crystal Apple 2017 |
Radio Category/Crystal Apple (First Prize)-with “Global Junior Account” |
|
|
Crystal Apple 2017 |
Film, TV and Cinema-Bank Insurance and Financial Services Category/Crystal Apple (First Prize)-“What Happens if you are/are not a CepteTEB user” |
|
|
Backed by the synergy created by the global network of its shareholder BNP Paribas, TEB Corporate Banking offers high value-added products and services to large-scale domestic and international companies, conglomerates and holding companies with an annual turnover of TL 50 million and above.
In the corporate banking business line TEB serves in the areas of:
Long-term customer relationship management approach
TEB has 15 corporate branches in total, 7 of which are in İstanbul. The Bank tailors its privileged and high-quality services in line with its long-term customer relationship approach, and delivers them through its foreign trade centers staffed with experienced specialists and an organization specifically designed for multinational companies.
In 2017, TEB further consolidated its effectiveness in Corporate Banking, and fulfilled its customers’ diverse needs amid a constantly changing and highly competitive environment of financial markets and succeeded in maximizing customer satisfaction.
In the future, TEB plans to continue its activities for new product and service solutions in keeping with its goal of being “the first bank that comes to mind of customers” in the corporate banking business line.
GLOBAL TRADE SOLUTIONS AND FINANCIAL INSTITUTIONS RELATIONS WITH BANKS
Specialized operational solutions in trade finance
Drawing on the support provided by the global service network of BNP Paribas, TEB has reached the position of a distinctive and specialized bank.
Among the world’s top three banks in foreign trade finance, BNP Paribas ranks first in Europe. BNP Paribas’ operations in 74 countries and Trade Centers active at more than 100 locations in over 60 countries sharpen TEB’s competitive edge in trade finance business, and gives the Bank the capability to provide specialized operational solutions such as foreign trade legal framework consultancy and preparation of letter of credit documentation.
Maintaining correspondent relationships with more than 1,200 banks located all over the world, TEB constantly seeks to expand this network in line with its customers’ needs. In addition to its strong correspondent network, TEB also enjoys the possibility to offer its customers competitive prices and maturities in foreign trade transactions using the network of BNP Paribas covering 74 countries.
Low-cost money transfer services
Through its correspondent network, TEB facilitates money transfer for its customers that require transferring money in local currencies of different countries owing to their investments in such countries.
Facilitiating cross-border money transfer in 135 different currencies to more than 180 countries, TEB offers same-day value-date solutions that are also very cost-effective for customers who need to transfer euros or US dollars domestically.
Syndicated loan renewed at 103%
TEB has renewed its syndicated loan with a renewal rate of 103%, which attests once again to the investors’ faith in the robustness of key economic indicators and banking sector in Turkey, as well as to the trust held in the Bank on the markets.
Syndicated loan agreement was signed on 7 September 2017, which was participated by 25 international banks. The loan consists of a portion of EUR 385 million and USD 85 million with a maturity of 367 days, and a second portion of USD 75 million with a maturity of 2 years and 30 days.
The interest cost of the syndicated loan portion with a maturity of 367 days is Euribor+0.85% and Libor+0.95%, respectively. To be allocated for financing of foreign trade transactions, all-in cost of the loan with a term of 2 years and 30 days is Libor+1.90%.
TEB Trade Centers
Located in İstanbul, Bursa, İzmir, Ankara and Adana, which together account for approximately 70% of Turkey’s total foreign trade, TEB Trade Center network providing foreign trade finance and foreign trade consultancy products and services is the first of its kind in the Turkish banking industry.
Currently operating out of five locations, TEB Trade Centers are places where foreign trade finance models can be exactly tailored according to customer’s needs thanks to TEB’s and BNP Paribas’ trade finance expertise and extensive correspondent networks.
Differentiating products in export finance
One of Turkey’s pioneering and competent banks in trade finance, TEB’s strong position in export finance is verified by sectoral data. Retail loans excluded, loans used to finance exports comprise 12% of Bank’s performing loans portfolio.
TEB has 5.7% market share in export loans, which puts the Bank in the 6th place. In terms of transactions, TEB mediated 9.3% of counter-guarantees provided to Turkey from outside and 5.1% of export letters of credit.
The staffing of every TEB Trade Center includes a team whose members have expertise in structured trade and commodity finance. This team devises financing solutions that are specifically fashioned according to the goods involved and customer cash flows. In this way, firms can be offered made-to-order products that go beyond the sector’s conventional financing methods.
TEB is adept in producing financing solutions for export commodities such as grain, edible oils, synthetic lubricants, plastic raw materials, chemicals, fruit concentrates and mineral ores such as iron, copper and chromium. TEB customers’ financing needs in both domestic and international markets in this area can be precisely addressed at every stage from initial procurement to final collection.
TEB commenced its licensed warehouse operations in early 2013. Concurrently with this, TEB introduced yet another innovative product to the Turkish banking industry by becoming the first bank in the country to own a licensed warehouse and to offer structured commodity financing credit whose collateral is the goods that are being held in it. In July 2017, the necessary infrastructure for borrowing against electronic product certificate (ELUS) has been finalized, and customers’ demands for financing began to be fulfilled.
One of the solutions offered to exporters within the scope of rediscount credit opportunities intended for exports, which the Central Bank of Turkey allocates to Turkish exporters, TEB actively plays a role in the market as a provider.
Foreign trade training
TEB provides its customers with specialized consultancy services related to their foreign trade and investment activities. In addition, TEB also works with sectoral and regional exporters’ associations, chambers of commerce and industry, organized industrial zone directorates and similar organizations to provide practical foreign trade training and seminars on foreign trade issues that are designed to meet the particular needs of firms in different parts of the country.
BPO (Bank Payment Obligation)
The International Chamber of Commerce (ICC) issued international rules of a new trade finance solution in April 2013 considering the fact that more than 70% of world trade is realized via open account and the share of letter of credit had fallen below 12%. This method, which is called BPO, is designed to facilitate trade via open account and to combine the speed of open account payment method with the security of letter of credit.
Keeping a close watch on this process and as one of only two banks in Turkey with the ability to offer its customers this newest and most sophisticated payment solution, TEB’s introduction of BPO makes it the 16th bank in the world to do so and the 5th in Europe, the Middle East and Africa.
Also, BPO transactions that include funding for the importer have been carried out for the first time in the world by TEB.
Having attained a significant rise in the number of customers regularly using BPO in 2017, TEB will continue to keep its customers supplied with the most up-to-date trade finance and risk management products and services in the future as well.
Offering high-quality and innovative products and services facilitating corporate customers’ payments and collections, TEB has been awarded in a number of international competitions thanks to its constant improvements in innovative products in cash management.
TEB was again granted for the fourth time in 2017, the “Turkey Domestic Cash Management Bank of the Year” award by Asian Banking & Finance, a magazine that conducts one of the most prestigious international awards programs for retail financial services. TEB received this award based on the opinions of judges from world’s top international consultancies: KPMG, Deloitte Consulting and Ernst & Young Advisory.
Additionally, TEB also developed a service where customers can pay the customs duty via SMS and presented this service to its customers in 2017. The product claimed the bronze award in the “Best New Product or Service of the Year” category at the Stevie Awards 2017.
Significant advantages and conveniences in cash management for multinationals
In partnership with BNP Paribas, TEB develops cash management implementations for its global customers requiring a single global solution for their operations that may be scattered all around the world. In 2017, customers were supplied with many specially-designed products and solutions allowing them to achieve greater efficiency and control in the conduct of national and international payment and collection processes related to their existing or planned operations in Turkey. TEB will continue to deliver products and services that are fully integrated into BNP Paribas’ global cash management system to its multinational customers.
TEB Multinationals Desk
As the first bank in Turkey to set up a Multinationals Desk back in 2006, TEB provides multinationals as well as Turkish firms with international operations with significant advantages and convenience in keeping with BNP Paribas’ “One Bank for Corporates” slogan, calling upon the resources of its own extensive network of domestic branches in Turkey as well as those of BNP Paribas’ 188 thousand employees, over 23 million customers, more than 7 thousand branches and 99 trade centers all located in 74 countries.
TEB delivers the service quality and standard that global partners of multinationals receive from BNP Paribas at the maximum extent allowed by the local regulatory framework.
Through the Multinationals Desk of its corporate banking division with its specialized personnel in the headquarters and corporate branches, TEB seeks to be the main bank with which all multinationals with operations in Turkey prefer to work as almost 1,300 multinationals from 45 countries already do.
Cross-selling and business development activities through powerful synergy
Providing its customers with innovative and creative products and services based on a customer-focused approach, TEB carried on with customized product delivery for Corporate Banking in keeping with its culture summed up as “create value for the group” also in 2017, as it did in previous years. Within this scope, the Bank took advantage of the competitive strength of TEB Group’s domestic subsidiaries and of BNP Paribas as it did in previous years.
Within the frame of its culture to create value through cross selling, TEB offers the following primarily to its customers who need investment banking products and services, by taking advantage of strong international network and product line of BNP Paribas;
In accordance with the operational areas of TEB's customers and TEB’s local and international product variety, cross selling, business development and synergic activities are carried out in the areas of;
with the Bank’s other business lines in addition to the synergy developed with BNP Paribas.
Cross selling activities also come to the forefront with TEB’s affiliates and group companies that are leaders in their sectors:
BUSINESS DEVELOPMENT ACTIVITIES
In communication with BNP Paribas Group and various companies, Corporate Banking Business Development Department develops new collaborations in a bid to expand the Corporate Banking customer portfolio.
The Business Development Department carries out business development activities in the area of corporate banking, focused on correctly and timely fulfilling the evolving customer needs, keeping a close watch on technological advancements and delivering comprehensive digital banking solutions to customers in the period ahead.
Within this framework, researches have been initiated for the expansion of the corporate customer network related in 2017 and foreign trade and correspondent network services of Corporate Banking Department were automated. Digital developments were monitored to make life easier for customers who are supplied with global trade solutions, and to offer cutting-edge services.
PUBLIC SECTOR BANKING
Public Sector Banking Department has been set up under Corporate Banking in order to expand the scope of business with the public sector and to increase cooperation areas. As a result of the activities carried out, low-cost funding resources have been made available to public institutions very quickly and first-ever Turkish lira foreign trade transactions were effected at public institutions in 2017.
Foreign trade, structured trade finance, cash management, and alternative funding facilities are among the priorities of the Public Sector Department. It is intended to make use of the Investment Banking skills TEB Corporate Banking and BNP Paribas possess for satisfying customers’ needs for longer term and lower-cost alternative funding facilities.
Additionally, work is carried on to give public institutions access to capital markets via conventional and Islamic products, as well as to borrowing markets, along with efforts in relation to systems that will facilitate access of small and medium-sized enterprises that are in connection with public institutions to financing.
MARKETING AND BUSINESS MANAGEMENT
The Marketing and Business Management Department works to establish the strategies for target customer groups and markets, and accordingly to develop business management models that will contribute to the effectiveness of the business line and the Bank in keeping with TEB’s overall strategies and with the purpose of creating competitive advantage.
The Marketing and Business Management Department also fulfills project management functions, as well as strategic planning. The Department also coordinates, plans and monitors the Corporate Banking portfolio and conducts detailed analyses in areas awaiting suggested improvements, and thus fulfills its responsibility for managing and coordinating various strategically important projects.
Additionally, the Marketing and Business Management Department:
TEB constantly improves the products and services it offers to SMEs within the scope of SME Banking activities that it has been carrying out under its “consultant banking” approach since 2005, and assists them with diverse solutions introduced in various areas such as growth and competition that represent the biggest challenges of SMEs.
Keeping a close eye on the changes and developments in economy and technology as well, the Bank provides guidance to equip SMEs with alternative perspectives, and to help them better prepare for the future business and production life.
In the field of SME Banking, TEB is organized to cover separate business lines to offer boutique service to its customers that require different products and services of a different scale. Besides the solutions that the Bank designed in the Women Banking, Microbusiness Banking, Agricultural Banking and Startup Business Banking business lines in a spectrum broad enough to overcome the financial problems facing the customers, the Group also provides support in non-financial aspects such as access to information, training and networking.
During 2017 TEB’s SME lending volume kept growing.
TEB kept fulfilling the cash needs of its customers at advantageous terms on the back of comprehensive credit campaigns it has conducted throughout the year. The Bank successfully preserved its long-going position as the sector’s leader with the experience it has acquired in Gold Banking, as well as its growth in SME loans.
TEB backs the SMEs as they gear up for the future digital world.
The progress in technology affects all sectors and digitalization of production and consumption processes modify the business conduct of all parties. The importance of technology-oriented production acquired in this process is regarded as a critical factor that must given consideration for managing the change the industry will undergo in the period ahead.
In the digitalization process where competition has acquired a whole new level, “value-added production” comes to the forefront, and it becomes critical that all businesses, big or small, internalize digitalization, embed technology in their business conduct, and achieve alignment with Industry 4.0 process, which is also referred to as digitalization of industry.
TEB assumes responsibility for helping the SMEs adjust to the “Industry 4.0” concept and to raise enhanced awareness of this process. Focused on making a difference with financial and non-financial products and services, the Bank prepares the SMEs for the circumstances of the future, while working towards letting them get ahead of competition.
TEB configures its products and services in a format that will guide the SMEs in their technological transformation.
Value-added services that TEB configured based on its mission as the “Consultant Bank of SMEs” are being developed in a format that will also guide the SMEs in their technological transformation.
“TEB SME Academy Industry 4.0 Gatherings” began to be organized in different cities to make sure that the SMEs adapt to “Industry 4.0” concept and to drive businesses ahead in the competition. First initiated on 14 April 2017 in İstanbul, the gatherings continued in İzmir, Konya, Denizli and Adana, and training sessions were held in organized industrial zones known as the heart of the industry, in addition to meetings held in cities. Within the frame of the series launched in Tuzla Organized Industrial Zone, it is targeted to offer more in-depth training programs in areas with special requirements.
Within the scope of Industry 4.0 Gatherings, information about various topics including Industry 4.0 concept, its effects on the Turkish industry and economy, and adaptation to Industry 4.0 have been shared with more than 2,000 businesspeople. Under the TEB SME Academy, the Bank reached more than 26,000 businesspeople in 113 events as at year-end 2017.
TEB SME TV is focused on providing guidance about digitalization to SMEs.
The first online TV channel dedicated to SMEs and differentiating the Bank in the sector, TEB SME TV continued to be a trustworthy online information/news source in 2017 with programs dedicated to the business and career development of the business world in general and SMEs in particular.
Besides news that take the pulse of the economy, the markets and business life, TEB SME TV focused on guiding the SMEs about technology-oriented production, Industry 4.0 process on the basis of sectors, how digitalization influences business conduct and how companies should adapt to the process starting from the onset of the year. Following “Technological Solutions” Women Manager Screen” and “Career and Personal Development” thematic channels that went live in earlier years, “Industry 4.0” went on the air and began broadcasting SME success stories so as to be inspirational for adaptation to the process. The number of news content exceeded 10,000 in 2017 on TEB SME TV, which served to acquire a monthly average viewing figure of 1.5 million.
Facilitation of SMEs’ reach to information about managerial and organizational functions
In the digitalization process of the industry, it has become even more crucial for the SMEs to reach necessary visionary information in order to survive amid the globalizing competitive environment. Today, companies need information on managerial and organizational issues such as how to discover new markets, which technological developments are trending, what kind of a managerial strategy and organizational structure they should adapt and which qualifications their employees should possess.
The Industry 4.0 process has made it critical to provide guidance to the SMEs with respect to allocation of the funding they receive, as much as providing the financing they need when planning their resources. To this end, the Bank updated the content of the “TEB SME Consultancy Program” training, which is a special training program designed for customer representatives about production management, marketing activities, foreign trade, reorganization and management of human resources, and expanded the “TEB SME Production Management Specialist Program” to cover technology-oriented production in 2017. Furthermore, an additional 148 customer representatives began receiving training in seven new classes opened during 2017 within the scope of “TEB SME Consultancy Program”; hence, over 600 customer representatives were equipped with the necessary knowledge and tools to provide guidance to the SMEs.
“tebledisticaret.com” pilots SMEs to discover new foreign markets.
TEB configures the digital transformation of products and services it supplies to the SMEs with a special focus on the individual needs of each segment. The Bank offers service to companies aiming to undertake exports with www.tebledisticaret.com, a digital service that will serve as a guide for them in their foreign trade activities and make their job easier.
“www.tebledisticaret.com” (foreign trade with TEB) is a platform designed to provide 360 degrees accurate, up-to-date and refined information to companies currently or potentially engaged in foreign trade. Through “tebledisticaret.com”, companies are able to find the information they need to access new markets in one source, and with the specially designed “TEB Foreign Trade Development Program” they are able to receive training and expert support on how to make use of this information.
tebledisticaret.com contains over 10,000 sectoral reports that also include market research about foreign markets, in addition to information of over 1,500 companies, more than 20,000 suppliers in more than 160 countries. Users can access detailed information about the general profile, geographic location, economic conditions, cultural differences etc. of the markets that they are interested in through tebledisticaret.com. Additionally, for some countries there is exporter/importer information for products that are subject to international trade as well as the opportunity to check out on country or sector basis the trade fairs where they can find new clients.
tebledisticaret.com is also noted for containing all sorts of relevant information that companies in search of new foreign markets will need in the export and import process including but not limited to special government incentives, customs and local taxes, transportation options, and relevant paperwork for foreign trade destinations.
“TEB Foreign Trade Development Program” gives companies the ability to conduct their foreign trade operations with utmost competence.
“TEB Foreign Trade Development Program” is a dedicated development and education program whereby companies can get the training and consultancy services they need for their foreign trade activities.
The program is designed to guide the companies through the vast amount of information provided on the tebledisticaret.com platform and also to give the answer to how to use this information. Companies who are new in foreign trade or simply want to increase their foreign trade volumes are trained on how to develop strategies for growth in foreign trade and on how to realize their action plans.
Broadening the horizons of the companies in foreign trade, “TEB Foreign Trade Development Program” was conducted through four different modules that addressed growth management, risk minimization in foreign trade, market research and analyses of existing foreign trade activities of the companies. The 6-month training program that began in 2016 was brought to finalization in February 2017, and participants who completed all four training modules received a training of 32 hours in total. Upon completion of the program, roadmaps developed by TEB Overseas Marketing and Sales Specialists upon determination of their foreign trade needs were delivered to the companies in June.
Companies attending the program gain the competency to execute their foreign trade activities with the information and vision they acquire. Guiding the companies that wish to grow in foreign trade through this program, TEB is aiming to strengthen the positioning of the Turkish companies in international markets and be there for them at every step of the way.
Continued support for giving Micro SMEs access to financing
In 2017, micro-enterprises operating in certain areas continued to benefit from Credit Guarantee Fund (CGF) support more easily and to access financial support more rapidly through the micro loans to micro SMEs project carried out by CGF and TEB. The CGF Equity Credit Collateral is intended to support the SMEs that have limited access to funding and ease the effective functioning of the credit market. Moreover, the Treasury-backed CGF Loan provided easier access to financing for SMEs, Manufacturer SMEs, Women Entrepreneurs, Shipbuilding Industry and Travel Agency SMEs.
SME customers are able to access the information they need also through social networking platforms.
TEB SME Banking customers can access specific information they need through www.tebkobitv.com and follow the daily news and developments through social networking channels Facebook, Twitter, and YouTube, which TEB SME Banking utilizes to contact its customers.
Active communication with customers continued in 2017 on platforms designed and positioned according to the specific needs of SME, women business owner and entrepreneur segments through @tebkobi, @teblekadin and @teblegirisim accounts. The communication is aimed at enhancing the business practices of the targeted audience, raising their awareness in business life and actively contributing to the overall awareness of the audiences through sectoral and economic up-to-date relevant content.
As of December 2017, @tebkobi account on Facebook has over 50 thousand followers, @teblekadin account has more than 49 thousand, and @teblegirisim account has more than 48 thousand, whereas on Twitter, @tebkobi has over 17 thousand followers, @teblekadin has more than 23 thousand and @teblegirisim has more than 12 thousand followers.
The Bank’s Boss Card product provides tradesmen and small enterprises with the opportunity to quickly access credit facilities with a single card through alternative distribution channels. TEB customers can access their full limits in commercial installment loans, seasonal loans, overdraft accounts and company credit cards over a single card with the TEB Boss Card and can meet their commercial loan needs with terms of up to 36 months from TEB ATMs and the TEB Corporate Internet branch on a 24/7 basis. Bills, cheques, social security contributions and HGS label charges (bridge and road tolls) can be paid on time with the overdraft account linked to the Boss Card, saving them a trip to the branches.
SMEs operating in the tourism sector are able to divide their seasonal loan repayments, made available exclusively under the Boss Card, in two installments to be paid in May and October in line with their cash flows.
The TEB Boss Card company credit card feature allows users to pay for purchases confidently and securely both in Turkey and abroad. The Boss Card also offers special bonus and discount campaigns for specified restaurants, cinema and theatre tickets. In addition, the Card also provides a 50% discount for parking in contracted airport car parks and free airport lounge access in contracted airport terminals.
While businesses can take advantage of banking products and services with the TEB Business Expense Packages, they also have the opportunity to keep track of the expenses that they should pay in a planned manner. Customers may also inform the Bank about topics related to daily banking transactions by sending text messages and/or e-mail with the Practical Messenger product, allowing them to follow up such issues easily.
In addition to the financial solutions it offers to the customers, TEB also delivers guidance services designed to help them use the funding to grow their businesses. Within the scope of the TEB Microbusiness Guidance Program, micro business owners are educated on how to grow their businesses and how to manage their risks through the analyses and roadmaps prepared by the micro business experts, who continued to provide guidance to businesses in 2017.
In 2017, 108 customer representatives began receiving training under the program, 40 of whom graduated at the end of the year. 68 customer representatives currently continue their training. The number of customer representatives who qualified for the guidance service provided to businesses within the scope of TEB SME Consultancy Program and delivering service as “TEB Business Guides” reached 153.
Sector leader in gold credit
Steadily increasing the value that it generates for customers all over the country through its expertise, accessibility and efficiency and contributing to the sector with its innovative products and services, TEB is successfully conducting its efforts to be the leading bank, the Bank whose name first comes to mind-in the gold banking business line.
TEB, which has been responding to the short and long-term needs of the jewelry industry for 20 years, became one of the most important players in the sector at the end of 2017. According to BRSA data, the Bank maintained its leadership position in the sector with a market share of 36%.
TEB Gold Banking offered a solution to the payment and maturity problems in purchases of gold for both wholesale and retail jewelers with the “Milyem Card” product it developed. TEB Gold Banking offers a comprehensive service with a range of products including current/time Gold Deposit Accounts, the Silver Deposit Account, the Drop Gold Account and the Type B Gold Fund and the New Golden Age for individual and corporate customers wishing to make savings.
TEB maintains its close relationship with the jewelry industry by participating in gold and jewelry trade fairs held throughout the country as the main sponsor and supporter. TEB continued to sponsor the JEWEX Fair that has become a tradition now. TEB also supported the “Istanbul Jeweler Show” which is the 5th biggest fair on watches and jewelry worldwide and in 2017 hosted over 1,250 domestic and foreign jewelers ranging from East Europe to Russia, from Middle East to North Africa and Turkic Republics of Central Asia. In 2017, the trade fairs have been instrumental in bringing the Bank together with market professional visitors.
Working with 500 municipalities and their agencies
Set up to develop and offer specialized banking products and services that address the unique needs of local governments, TEB Public Sector Banking continued to be one of the leading players in this business line in 2017. Through its public sector banking approach, TEB makes it easier for local governments to locate the financing they need and also helps them complete their large-scale investment projects faster and more efficiently. TEB also provides a number of cash management solutions, such as Turkey’s first online and real-time collection service, which makes it possible for people to pay municipal taxes, fees, etc. more quickly and conveniently.
TEB continues to be a consultant bank in the field of Public Banking. The bank shows programs about local government on TEB SME TV with public law specialists. TEB creates solutions for local governments in budget management and similar issues where there is a lack of knowledge, through the TEB SME Academy Public Meetings organized especially for local governments.
TEB continues to allocate funds for investments for farmers.
TEB Agricultural Banking aims to stand by the producers with agricultural banking products that are aligned with the needs of the sector and producers, and are also designed according to the conditions and dynamics of agricultural production. Carrying out its operations with suitable products, pricing and operation, TEB Agricultural Banking continues to extend resources to support agricultural input finance as well as financing of investment projects for agricultural producers of all sizes and for producer organizations (associations, cooperatives and chambers) within the scope of its “consultant bank” mission.
TEB Agricultural Banking derives its competitive superiority from its long-term relationships with customers built on its specific financing types addressing different sub-production kinds, its expert team and strategic approach based on know-how.
In view of the benefit delivered by the TEB SME Consultants project, a similar program was created compatible with the particular dynamics of the agricultural sector. During 2017, 21 agricultural customer representatives began to be trained under the program. At the end of the year, 45 TEB Agricultural Specialists in total were providing consultancy services required by agribusiness establishments in various fields such as administration, development and planning. TEB Agricultural Specialists Program is intended to help producers transform themselves into agricultural enterprises.
TEB Agriculture Meetings organized under the TEB SME Academy continued in 2017. Began to be held on the basis of boroughs instead of provinces since last year, the events have been instrumental in building deeper relationships with the producers. Intended to meet the exact requirements of the local producers, adopt a closer focus on local issues and come up with solutions to local problems, these meetings took place in Bayındır/İzmir, Develi/Kayseri and Kadirli/Osmaniye in 2017.
So far, more than 1,500 producers have been given education in topics including agribusiness management and growth, as well as fertilization, pesticides, seeds and equipment. The program served to create a platform where agricultural problems of the boroughs and their suggested solutions are discussed.
TEB Agricultural Specialists played a major role in the transformation of agricultural producers into agribusiness enterprises. Having personally delivered the educational programs, the Specialists analyzed the problems of agricultural enterprises in detail and contributed to the preparation of long-term planning and development schemes of enterprises with the information they shared. Within the scope of the educational programs, collaboration was made with the agricultural chambers and development agencies of the areas, the problems of the regional agriculture sector were discussed with all the stakeholders and an action plan was determined.
Lexus, the automated surveying system, went live in pilot areas.
Standing by the producers with its products and services offered under the Agricultural Banking segment since 2007, TEB continues to provide advantageous offers and develop collaborations to make life easier for the producers.
TEB established collaboration with new businesses and expanded its merchant partner network in order to enhance the usefulness of “TEB Harman Kart” (TEB Harvest Card), a specialized credit card product that comes with advantageous payment terms that can be very useful when farmers procure essential inputs. Petrol Ofisi and OPET, two giant brands in the fuel oil industry, and İGSAŞ Gübre, a solid fertilizer brand, are now covered under Harman Kart. Fuel oil companies ranked in the top three in the sector in terms of market share are now added to the ongoing cooperation with Shell.
Lexus, the automated surveying system for producers wishing to obtain cash loans collateralized with land lien, was introduced in pilot areas to make the process easier for the producers. Lexus allows the appraisal process to be completed within seconds as opposed to former applications.
Financial and non-financial products were promoted through the participation of 12 national and international agricultural fairs in 2017, thus reinforcing relationships with stakeholders in the agricultural sector.
TEB keeps reinforcing the entrepreneurial ecosystem
The activities carried out under the Startup Business Banking since 2013 in a bid to offer comprehensive and effective support to entrepreneurs wishing to set up and expand their own business continued in 2017. Being the only bank to have organized a dedicated synergy for the entrepreneurial system within its organization, TEB provides all-round guidance to entrepreneurs, from how they can transform their ideas into a business with the financing they secured to how they can market their projects. Through Startup Business Banking, entrepreneurs capture the chance to access public sector incentives, to present their innovative products on domestic and international platforms, to grow and improve their companies, and acquire new customers.
The business model it has created and its powerful business partners made TEB Startup Business Banking the hub of activities for transforming high value-added business ideas from all over the country into entrepreneurship potential.
TEB bestows an entrepreneurial vision upon Anatolia through TİM-TEB Start-Up Houses.
At TİM-TEB Start-Up Houses that were initially opened in 2013 in 10 provinces (İstanbul, İzmir, Konya, Gaziantep, Denizli, Bursa, Trabzon, Edirne, Mersin and Erzurum) as a collaborative project of TİM (Turkish Exporters Assembly) and TEB with the aim of offering consultancy to entrepreneurs, startups receive all sorts of end-to-end support.
Providing a custom-designed working environment for startups, Enterprise Houses followed up the current trends and further increased the diversity of activities in 2017, and kept delivering comprehensive and active support to entrepreneurs with technological or high value-added business ideas, who seek to set up their own businesses, with its diverse practices catering to periodic needs.
Startups stepping into the business world with limited resources take advantage of the opportunities that materialize and grow their businesses with the support of TEB Startup Business Banking, while also helping the entrepreneurial ecosystem flourish. In this context, TEB aims to strengthen entrepreneurship that gains increasing importance in the economy and also to contribute to social welfare by ensuring sustainable growth for the Turkish economy.
In the TİM-TEB Start-Up Houses, a 6 level structure made up of Wake-UP, Let’s UP, Step UP, Start UP, Level UP and Grow UP programs are implemented under the Tekno Set UP program in order to meet the needs of entrepreneurs and enterprises of various sizes. This enables the introduction of custom made solutions to the different problems of enterprises at the different levels of development.
Conducting entrepreneurial programs at universities in the form of Wake UP and Let’s UP programs, Enterprise Houses develop projects for winning young entrepreneurs-to-be who regard entrepreneurship as a career for the ecosystem. The trainers of the Enterprise House paved the way for inclusion of the “Entrepreneurship and Project Management” heading within the course programs at four universities in line with the academic curriculum, thus equipping the students with an entrepreneurial vision, and extend support to them through necessary education for transforming the students’ business ideas into action.
The Step UP program within the scope of the Enterprise House prepare the candidates with technology business ideas for the application process of TUBITAK’s BİGG (Individual Young Enterprise) Program that provides grants to entrepreneurs for putting their business ideas into life.
Start UP, Level UP and Grow UP programs within the scope of the Enterprise House extends consultancy and training support to entrepreneurs who have succeeded in establishing their companies for a sustainable business model and provide them with guidance for gearing up for the market conditions and becoming global companies.
TEB Startup Business Banking completed its organization across a total of 10 cities including the up-and-coming Eastern Anatolia city of Erzurum, where TİM-TEB Start-Up Houses activities were launched in 2017. Hence, the business line increased the number of supported entrepreneurs to 572, including 236 companies to which it has given consultancy during the reporting period.
In addition to 10 cities where TİM-TEB Start-Up Houses are located, six different cities, namely Antalya, Tekirdağ (Çorlu), Edirne (Keşan), Kırklareli (Lüleburgaz), Rize, and Samsun, have been incorporated within the sphere of activities during 2017. A total of 9,950 entrepreneurs-to-be and active entrepreneurs have been reached on the basis of 315 training programs organized under 23 different headings in 17 cities in total. Through Wake UP programs launched in universities in an effort to raise an awareness of entrepreneurship in the young generation, more than 1,000 university students have been taught “design thinking” approach, and the most important assets of the future have been instilled with the courage to realize their own business ideas.
TEB is the only bank among the 20 implementing companies of TUBITAK’s BiGG Program.
Accepting applications from entrepreneurs for three years as the only private company taking place among the 20 accredited enterprises under TUBITAK’s Young Enterprise (BİGG) Program, TEB has performed highly successfully based on the grant results announced. Following 1,400 applications it has received within the scope of BİGG in 2017, the Bank intermediated funding support worth TL 6 million for a total of 40 entrepreneurs on the basis of 73 projects of value that it has referred to TUBITAK, and as such, was one of the top two enterprises to have intermediated the allocation of the highest amount of grants among 20 implementing companies.
Under Let’s UP, another value-added program implemented by TEB in cooperation with the US Consulate, education is provided at Turkey’s major universities and awareness is raised about entrepreneurship, the new economy, information society, and the flourishing entrepreneurial ecosystem.
Within the scope of Let's UP program, a total of 250 students from 8 universities present their business ideas before a jury during the Demo Day event, after they successfully complete various education and mentorship phases. A total of 16 students to be composed of 2 students from each university to be designated by the jury will go to the Silicon Valley in summer 2018, where they will receive training to acquire an entrepreneurial vision and familiarize themselves with the start-up ecosystem.
According to research conducted by Thrace Development Agency, the potential entrepreneurship rate in the Thrace Region is below the Turkey average. In an effort to make up for this shortcoming, TEB Startup Business Banking extends support to the “My New Business: Entrepreneurship” project launched by the Thrace Development Agency, and organizes special educational programs for students with the Let’s UP program content in a bid to help the region realize its full potential.
Entrepreneurs supported by TEB Startup Business Banking represent TEB on the national and international stage.
Organized in Helsinki, Finland, in December 2017 and one of the world’s biggest start-up events, Slush hosted approximately 15 thousand participants that included more than 2,600 entrepreneurs, 1,500 investors and 600 media representatives.
Prior to the event, applications from 130 countries were evaluated to name those that would take to the Slush stage for sharing their business ideas with the world, and 100 start-ups that would make a presentation have been identified. The Bank has taken great pride in the fact that three of the four Turkish entrepreneurs that were deemed eligible to make a presentation at Slush have been selected from among TİM-TEB Start-Up Houses entrepreneurs.
In addition, a total of 10 Turkish entrepreneurs from TİM-TEB Start-Up Houses were taken to the Slush event, giving the technology-focused entrepreneurs possessing exportation potential the opportunity to reach an international audience and connect with the technology community.
85 entrepreneurs from TİM-TEB Start-Up Houses taking place under the Startup Business Banking roof in 10 cities, namely İstanbul, İzmir, Denizli, Gaziantep, Bursa, Konya, Trabzon, Edirne, Mersin and Erzurum, have taken part at the “Turkey Innovation and Entrepreneurship Week” held by TİM between 06-09 December 2017 with their startup business ideas. A TİM-TEB Start-Up Houses entrepreneur, Taglette Tech from İstanbul ranked third in the national category, and claimed a prize money of TL 50,000.
Increasing women’s participation in the business world and strengthening their presence in every area is crucial in terms of the added value contributed to the economy. According to McKinsey Global Institute 2015 Gender Equality Report, the global growth figures would go up by USD 12 trillion by the year 2025 provided that gender equality is achieved in business life, a projection that is noteworthy for exhibiting the numeric representation of the degree of importance of this matter.
TEB supports women having a high economic potential.
Worldwide, 40% of the workforce is made up of women and 28% of the businesses are run by women. In Turkey, the share of women in the workforce is 30.8% and 14% of micro businesses and 18% of SME’s are run by women (EBRD Women Entrepreneurs and Their Relationship with Banks Study 2013).
During 2017, TEB carried on with its activities that it has devised based on this fact with an integrated approach to service in order to cater to women business owners’ needs in business life. As part of these activities, TEB focused on extending the financial and non-financial support women business owners needed for sustainable economic growth and also aimed to unleash the hidden potential in keeping with its vision of being the “women’s consultant bank” and “the bank women want to work with the most”.
Women are provided with easier access to international funding facilities.
Women face problems in accessing financial resources, especially in finding collateral and obtaining loans so much so that they sometimes give up at the early stage of setting up their business. Solving these problems is highly important for preparing the stage for women where they can take part in the economy not only as consumers but also as producers.
To this end, TEB introduced credit without material collateral and special financing packages. TEB is intermediating EUR 50 million funding through the “Consultancy and Financial Support for Enterprises Run by Women” program that is hosted by European Union and European Bank for Reconstruction and Development, Ministry of Labor and Social Security and Turkish Labor Agency. The program is aiming to support women and the businesses run by women as well as entrepreneurship by women.
This EUR 50 million funding is given out to women banking customers in the micro business and agriculture segment in the form of loans without material collateral up to TL 75,000 and to women banking customers in the SME segment in the form of loans without material collateral up to TL 125,000. Based on the disbursements initiated in 2015, over 6,000 customers were provided with funding through loans worth more than TL 245 million as at year-end 2017.
Additionally, Women bosses are granted loans up to TL 100,000, backed 85% by Credit Guarantee Fund surety with maturities ranging from 6 months to 5 years. If they qualify for it, women bosses are given up to two years no payment period.
Another funding facility TEB offers to women business owners is conversion of their gold in the form of ornaments or bullions into pure gold through the jewelry shops that have an agreement with TEB and transfer the same into gold depository deposits as collateral against Turkish lira commercial installment loans of up to TL 30,000 with up to 24 months maturity including a maximum grace period of three months.
In addition, special cost and product packages customized according to women’s needs allow execution of certain banking transactions at no or reduced charges.
Women are provided with a variety of routes to access information.
TEB develops a number of quality solutions to provide the women business owners with the information they need to grow their businesses.
Structured in line with this objective, TEB Women Academy is a special program that offers women bosses training to build on their leadership and business management skills through workshops. Organizing events intended to bring women bosses together with the inspiring women of the business world, the Academy collaborated with TOBB (The Union of Chambers and Commodity Exchanges of Turkey) Women Entrepreneurs Board in 2017 in order to reach more women bosses and added new training programs to workshops in some cities in view of the needs of that specific region.
In 2017, over 600 women were reached through nine Women Academies organized in eight cities. All in all, the Bank reached nearly 3,000 individuals by way of 25 Women Academies held in 17 cities to date.
In keeping with the aim of presenting information to women bosses through different modes of communication, @teblekadin Facebook page and TEB SME TV are actively utilized. In the TEB SME TV Women Bosses Screen 269 videos were uploaded in 2017 and in these videos a wide range of content varying from finance management to developing leadership skills along with inspiring success stories were featured. In the Women Bosses Screen, issues like social roles of the women bosses, overcoming the barriers in business life, maintaining the balance between work and home are tackled with useful tips in short videos. Especially the profiles of inspiring women who have built their businesses and went through difficulties while growing it and the success they achieved are useful in conveying the message “you can do it too” to women bosses. TEB SME TV was popular with viewing time averages of almost 4 minutes.
Every Thursday, TEB’le Kadın On Air is broadcast live on @teblekadin Facebook page; these 20-minute training programs provide information on a wide range of content varying from cash management to the rules for growing an online business, from the ways to increase operational profitability to using neuromarketing to reach consumers. By the end of 2017, there were 75 live streamings with educational contents that reached more than 2.7 million people in over 400,000 viewings.
TEB has designed support programs to fulfill women bosses’ needs for mentoring.
Worldwide research concluded that women display an increase in their self-worth, awareness and use of skills when they receive mentoring. Along the line, TEB designed Women Banking support programs in order to fulfill this one of the most important requirements of women bosses which is mentoring.
Within the scope of TEB Star Cluster project, which is one of these designs, TEB branch managers selected to extend support to women bosses were trained as “Enterprise Coaches” through a special program. The project, which is the first of its kind organized in such depth by a bank in Turkey, is intended to provide coaching to women bosses they need to solve the day-to-day problems they face and to take the actions necessary to grow their establishments.
TEB branch managers who receive Star Cluster training act as women bosses’ companions not only in financial matters, but also in all other topics they need for growing their businesses from recruitment of qualified employees to stock management, from cash management to new generation sales techniques. Training was initially given to 25 branch managers under the project that was first launched in February in İstanbul, whereas training is in progress for the second group of 25 individuals attending the second program opened in December. Star Cluster who have completed the training have started working one-on-one with women bosses that they will be coaching based on the 180-day growth plans. The project Star Cluster is a special program offering the chance to build on competencies and skills not just for women bosses but for TEB branch managers who will be acting as enterprise coaches.
Another program designed besides the one-one-one coaching service devised by Star Cluster is the TEB Growth Academy that offers group coaching to women bosses for growing their establishments. TEB Growth Academy is an interactive group coaching program that concentrates on the most frequent three issues with the aim of supporting women bosses in growing their businesses.
The Academy which is initially open to a limited number of women bosses who are willing and committed to achieve self-development is being carried out 3 full-day with 15 days in between each sessions for class sizes of 20 people. The first session provides an introduction covering business styles and thought patterns, and dwells on new generation marketing techniques for one full day. The second session is dedicated to DISC Behavioral Profile Inventory, and the third one to the 90-day planning. The program helps women bosses focus on the topics that present them with the greatest challenges they have while managing their establishments, create solutions for them, while also giving them the chance to cooperate or exchange ideas with women in business from various sectors.
Accessing new markets is noted as one of the key problems faced by women bosses.
Research shows that women bosses have a harder time compared to men dealing with socio cultural norms and creating means to access new markets. This difficulty is costing women bosses a lot of lost opportunities.
TEB became a member of “WEConnect International” that operates in Turkey in order to increase the presence of women entrepreneurs in the economy and help them access new markets. TEB targets to make the companies with women leaders a part of the global supply chain and carry women entrepreneurs to higher places in the competition with its WEConnect membership. As at year-end 2017, the Bank has been instrumental in making 54 of its customers a part of the global supply chain and helped them access new markets. In order to enable women’s participation in the supply processes, TEB is including WeConnect member firms in TEB’s supplier pool.
Besides special products and services for women bosses, the Bank also sponsors special events formulated on the basis of the women’s role in social life and leadership. In February 2017, “Women That Make a Difference Gathering” was organized in Adana in cooperation with Arya Women Investment Platform. Canan Dağdeviren, worldwide famous scientist, was also a speaker at the event, which attracted the leading names from the NGOs in Adana and more than 100 businesswomen and which reached nearly 40 thousand viewers all over Turkey through the live streaming over @teblekadın Facebook page.
Turkish Enterprise and Business Confederation brought dozens of NGOs extending support to women entrepreneurship in Anatolia together with international organizations working with the motive of driving women all over the world forward such as UNDP and UN Woman at the event titled the “Role of the Women in Sustainable Development Goals”, where success stories of women given support through TEB Women Banking were shared.
The Digital Heels event, which forms an opinion in the digital World and brings together the women who are active in business and social life, brought together more than 600 women from Turkey in this year. Within the scope of the event, the inspiring stories, problems and points made by these women who have an idea, a project or a stand were broadcasted live on TEB SME TV, Facebook and Periscope so that they could be heard by the masses. During the event day, the live broadcast through Facebook reached an audience of 142 thousand and the Periscope to almost 2,000.
TEB Women Banking consolidated its distinctive standing in international arena in 2017.
A great acceleration has been gained with the support given in every segment served, from entrepreneurs to women bosses, from micro businesses to SMEs, to help them overcome.
TEB Women Banking provides the necessary support in all segments serviced from entrepreneurs to women bosses and from micro businesses to SMEs to help them overcome some of the obstacles they face in business life, to be able to compete globally and attain a consistent growth. Such support provided in key topics have accelerated substantially in 2017; the experiences that TEB gained have set an example to the banking sector on various platforms, and consolidated the Bank’s distinctive standing in international arena.
Following its recognition as one of the world’s top three banks in the “Provision of Non-Financial Services to SMEs” by the International Finance Corporation (IFC) in 2011, TEB began transferring and sharing its experience in SME Banking with the banks in different countries. The Bank shared its success story with the finance sector of Brazil, USA, Indonesia, Jordan, Colombia and Malaysia and presented its know-how in SME Banking to the banks in developing countries such as Nigeria, Pakistan and Peru.
Carrying on with these activities also in 2017, TEB attended the GBA Annual Summit held in London between 14 and 16 November by Global Banking Alliance for Women (GBA), whose members are banks and financial institutions that offer banking services for women and which is noted as the greatest organization of its kind in the world. The summit presented the Bank with the opportunity to share its specific services offered to women bosses and its experiences. At the organization, TEB also received an award for specific services developed for businesses with women owners, for its approach to the matter, and the in-depth communication established.
TEB Women Banking ranked in the top 10 for customer focus in Europe
Being the first bank in Turkey to set up in 2017 a dedicated department addressing the women bosses’ needs in the business world with a holistic approach to service, TEB was recognized for its activities under the Women Banking roof at the European Business Awards, one of the most prestigious award programs in Europe.
At the European Business Awards that attracted applications from more than 33 thousand companies from 34 countries, TEB has been the only Turkish Bank to be awarded Ruban d’Honneur (Ribbon of Honor) in the customer-focus category, and ranked among Europe’s most customer-focused organizations.
Business Development
Within the frame of its customer-oriented value propositions and innovative business development vision, TEB again focused on identifying unfulfilled customer needs and on providing solutions that will satisfy these needs in 2017.
The Bank’s market share kept growing on the back of new agreements executed for the provision of infrastructure services subject to cash management processes with companies that began operations under the Law no 6493 on Payment and Security Settlement Systems, Payment Services and Electronic Money Institutions. In this context, TEB added 3 new payment institutions within the scope of its collaborations in the area of Bill Payment Systems, and now work with a total of 15 companies.
The number of bill collection points was increased to 7,000, up by 16%, giving cross-selling opportunities to branches. A new payment channel has been introduced with an API (Application Programming Interface) specially developed for each of the billing companies that TEB is currently working with and the relationships have been reinforced. Creating synergy among different business lines was a priority in this project.
Providing service to payment institutions undertaking bill collection for Turkey’s biggest electricity companies since 2015, TEB carried on with its bill payment service with the addition of new institutions to its portfolio in 2017.
TEB has contacted the sector leading companies in relation to cooperation with Electronic Money Institutions and produced a number of projects planned to be implemented in 2018.
Collaborations with companies in electronics, white goods, transportation and technology, especially in the area of e-commerce, has been sought and work has been carried out in the credit and card products to ease the processes for the final consumer simultaneously across different sectors.
In 2017, TEB continued to provide HGS (Rapid Pass-Through) labels for bridge and motorway crossings free-of-charge to all customers without any conditions. All necessary HGS developments for the Eurasia Tunnel and all bridges and highways opened in 2017 have been completed timely and smoothly. HGS label and card top-ups can be linked to TEB credit cards and deposit accounts by way of an automated payment instruction.
TEB Metamorphosis Flow
A process has been designed and introduced in November 2017 to help ease the hardships that fintechs, which are reached through various channels, events and programs (Fintech Future Four, TEB Hackathon, university programs, TEB Innovation Programs, etc.), have with respect to branding and commercialization, and to realize the targeted value together within the shortest time possible.
The said process allows deciding whether or not to move forward with a fintech contact within one month on average. For the decision phase, “FinTeb Score” has been designed and introduced, which is a scoring/assessment method employed for the first time in Turkey.
Taking into consideration the evaluation criteria used by the famous investors of the Silicon Valley, venture capital investors and angel investors, the “FinTeb Score” model has been exclusively custom-tailored for TEB and enables making more objective and more accurate selections.
In accordance with the roles and responsibilities in the designed process, regular meetings/workshops are held with fintechs, alignment of fintechs to the Bank’s processes and practices is improved, and weekly progress reports are regularly shared with the organization.
TEB API Program
With the PSD2 directive scheduled for introduction in January 2018 in Europe, it is intended to offer a more competitive and better online payment system to the EU citizens. In the same context, “Open Banking” directive has been introduced in the UK. According to these directives, banks will be obliged to make their customers’ account information and online payment services offered to their customers to Trusted Third Parties. Deeply affecting a number of sectors in the world and giving rise to the “API ecosystem” definition, this approach is projected to significantly influence the banking sector, as well.
While these directives do not cover Turkey yet, the TEB API Program has been launched in order to rapidly capitalize on potential opportunities and to be ahead of the competition.
The TEB API Program, which is considered to serve as a role model for the sector, has taken the best practices in the world as its basis and process- and organization-related arrangements that adopt the necessary agile methodologies have been introduced quickly. TEB is hoping that the program will strongly stir the fintech ecosystem in the year ahead with its deliverables.
Customer Experience
Constantly measuring the customer experience in line with the aim of fulfilling its vision of “becoming the most recommended bank”, TEB carries out the necessary activities with a design-oriented approach in order to improve the “TEB experience” of its customers.
Key activities aimed at improving the Customer Experience during 2017 included the following:
Measurement
Customer satisfaction is measured through the NPS (Net Promoter Score) System, in which approximately 100,000 customers each year receive calls from the call center agents following the execution of their transactions and are asked about their experience and whether they would recommend TEB. With the NPS, business units and related teams regularly analyze the “voice of customers” to identify the problem areas in customer experience and to make necessary improvements. The Net Promoter Score of TEB improved by more than two-folds since the system’s introduction in 2013 until 2017, and the NPS maintained its uptrend also in the reporting period.
In addition to the daily NPS measurement carried out at the Bank, feedbacks are also collected with countertop tablets/kiosks installed in certain branches at the time of the transactions, and improvement areas for the specific branch are being reported.
Design
“Customer Journey Maps” are used to investigate how different products and processes are experienced by the customers and the outcomes of the project are translated into action plans in marketing, communication, systems, processes, products etc. In addition to improving the existing experience journeys, a “redesign project” was carried out in the form of a joint creation process incorporating all teams employing the “Design Thinking” method in 2017.
Communication
The third edition of the “TEB Customer Experience Day” event aimed at sharing the current developments and trends in customer experience has been carried out with the participation of more than 230 people from 90 institutions, and they had the chance to hear about the methods and best practices employed by companies from a number of different sectors for improving and developing customer experience.
Within the scope of cultural change studies to increase customer focus, employees with the highest NPS score are rewarded, bulletins where best practices from TEB and from around the world are published and regular region/branch visits are made.
Management
The “Customer Experience Council” has been introduced to identify priorities in customer experience and the platform carried out its activities to expand Customer Experience culture at all levels and to adopt the necessary decisions based on joint working culture through the regular meetings held.
“My Customer Experience” portal, whereby TEB employees are able to evaluate and interpret the Bank’s products and services from the viewpoint of customers, has been introduced and its outputs began to be monitored.
Bancassurance
Having become an active distribution channel in the insurance industry and particularly in the life branch, banks sustain their development in the non-life branch.
According to the December 2017 current figures of the industry, banks were accountable for 81.4% of the premium production in life insurance and for 14.5% of that in non-life insurance.
As at December 2017, TEB’s bancassurance premium production amounted to approximately TL 146 million in life insurance and to TL 239 million in non-life branches, thus continuing to contribute to the Bank’s commission income. In the Private Pension System, where 25% state contribution implementation is going on, the number of PPS sales picked up with the added effect of the Auto Enrolment System, and nearly 280 thousand new policies were issued.
In 2017, TEB bancassurance continued to offer services from both Bank branches and alternative distribution channels to meet its customers’ needs for insurance and private pension products. While policy purchases and monitoring were enabled through the customer interaction center and Internet banking, work is underway to diversify the products sold via these channels, as well as to develop digital solutions.
In addition to insurance products, together with Private Pension System regulations, communication and marketing campaigns were carried out to inform existing and potential customers of government funding practices and to help them take advantage of them.
TEB is constantly striving to further develop and improve its business processes in order to provide the best insurance and private pension services to its customers.
TEB Family Academy
Established in 2012 in order to enhance financial literacy and raise an awareness of saving in the society, TEB Family Academy offers all individuals -Bank customers and non-customers alike- basic financial literacy training free-of-charge.
Organized under the headings savings, budgeting, debt management and correctly using banking products, the trainings are intended to contribute to the families’ finances and to indirectly promote the improvement of the national economy. Including the free-of-charge training provided to the public and private sector employees, the Academy reached more than 250,000 people as at December 2017.
Targeting to bring financial literacy activities to much broader audiences through different platforms, TEB plans to give financial literacy education to 5 million people over the course of three years under the “I can manage my budget” project co-conducted with the General Directorate of Lifelong Education, which is an affiliation of the Republic of Turkey Ministry of National Education.
In addition, under another protocol signed with the Directorate General for Vocational and Technical Education, again an affiliation of the Republic of Turkey Ministry of National Education, 1.2 million high school students will be educated with financial content embedded in their banking and accountancy classes in 2016. More than 1 million people have been reached as of December 2017 within the scope of the project initiated to familiarize the students with financial subjects.
Having designed its new term projects with the target of including the training of agricultural workers as well, TEB Family Academy is planning to sign a cooperation whereby it will reach out to 125 thousand agricultural workers in 2018. A training program addressing agricultural workers was organized in May 2017 as the first step of this project.
In the last few years, 11 million elementary school students have been informed about financial literacy through arts and music courses in the compulsory curriculum within the frame of the “Social and Financial Education through Art” project implemented in collaboration with the Ministry of National Education and UNICEF.
Marifetli Savings Account
By the end of 2017, there were approximately 450,000 “Marifetli Savings Accounts”, a product TEB has developed as an alternative savings account in a bid to change Turkey’s savings habits. Launched in December 2017 and enabling free-of-charge money withdrawal in foreign countries while saving up, “Global Young Account” addresses the youngsters in particular.
“Keep the Change” implementation in the Marifetli Account grants customers the chance to round up and save the change in their expenses while paying for their purchases with the Bank cards.
Targeting upper segment customers, the Fırsat Account gives the customers the opportunity to keep saving up and at the same time to shift to different instruments at any time in view of the volatile market conditions. The Fırsat Account enables saving up in 5 different currencies including gold.
The volume of TL 5 billion including foreign currency reached in Marifetli Savings Account and Fırsat Account as at year-end 2017 accounts for a significant portion of the Bank’s funding sources.
TEB Affluent (Yıldız) Banking
TEB offers privileged service in various departments to medium- and upper-segment customers via customer representatives who invest assets in line with the customers’ expectations, offer optimum alternatives and with whom they can contact on a personal basis. Affluent(Yıldız)Banking service category is intended to make the said group of customers feel special on the back of innovative products and services designed specifically for them.
In 2017, TEB Affluent(Yıldız) Banking redefined its criteria for eligibility as a affluent customer, increasing the required amount (30-day average of the mortgage loan balance and/or total assets held with the Bank) from TL 75,000 to TL 100,000. In the 12 months to end-2017, net revenues from affluent customers grew by 13%, and the number of these customers reached 96,800.
Through the exclusive TEB Affluent(Yıldız) Line (customer interaction center), the Bank’s affluent customers enjoy the privilege to easily and quickly perform their transactions, and to withdraw cash from other in-network banks’ ATMs abroad without a charge.
Key activities carried out in the Affluent(Yıldız) Banking segment during 2017 are summarized below:
Retail Segment and Retail Loans
In 2017, TEB turned its focus on different niche groups and concentrated on the specific customer needs in each segment to determine the service models with the ultimate goal of enhancing the quality of service.
The Bank introduced communication programs that will tackle the entire lifecycles of customers with the Bank, will allow delivery of products that suit the customers and will inform them about the Bank and its services. The campaigns carried out throughout the year and the new product packages created were intended to satisfy all banking needs of retail customers and to achieve depth with the customers.
Using detailed analyses and research about processes, value propositions on the basis of persons were presented to customers. In view of the research analyzing the processes, customer feedbacks, and NPS results, improvement efforts were initiated, which put the customer himself and his needs in the focal point. In this context, responsible banking loan was developed to recover the customers who have somewhat grown distant from the finance system back for the system. Responsible banking perception has been designed to penetrate the customers’ lives not just with loan products, but also with other steps that add value to the customers’ lifecycles.
In 2017, general purpose loans with a low credit line also began to be offered at TEB branches which is aimed at winning those customers for the banking system, who are new to the financial world and banks or who are seeking to upgrade their already low credit scores.
Constantly expanding the range of its effective and productive products and services offered under Retiree Banking with new ones, TEB completed the developments that will secure retiree acquisition from ATMs, the Internet, branches, tablet PCs and Call Center. The Retiree Care Line designed to provide special services to Retiree Banking represents the final stage of the Telephone Banking initiative for retired customers.
Besides collecting loan applications via the call center, TEB also began to disburse loans through the same channel during 2017 as part of its activities aimed at satisfying its retail customers’ cash needs. As such, from 2017, TEB began to make loans available to its customers from its mobile banking, Internet banking and call center channels in addition to its branch network.
During 2017, the infrastructure for lending at the point of sale has been established, and lending became possible through in-network dealers. Within the frame of the cooperation with the PTT, disbursement of general-purpose loans continued for retirees receiving their pensions via PTT, and TEB’s market share in this department reached almost 16%.
Serving as an important role model for the sector in housing and auto loans, TEB further increased its recognition through auto dealers and real estate offices and continued to offer service to its customers.
TEB Sales Management keeps leading the sector with the use of superior technology as well as by providing a variety of products and services for sales undertaken through the tablet platform throughout Turkey.
Active Sales Channels
Having a field team of 200 people, TEB Sales Management sustained its leadership of the sector in terms of the number of daily approvals on the basis of sales representatives in 2017, and 13% of total loans disbursed during the year were allocated via PTT. The goal of TEB Active Sales Channels team is to carry out multiple products and deliver the full range of banking services to customers.
Mass customer acquisition and performance management
TEB regards customers receiving salaries paid through the Bank as the primary instrument of the development it will achieve. 47% of the Bank’s newly acquired customers were obtained from this channel in 2017.
Having placed priority on university payments since 2015, TEB continued to grow in this department in 2017 and offered facility for university salary or tuition fee payments for 19 universities. Thanks to the online infrastructure developed for tuition payments, mobile sales teams use tablet PC to perform payment transactions at the time of registration and the university receives those payments simultaneously. Intermediating the payments of the managements of housing compounds that grow by the day with the digital solutions it offers and cooperations, TEB targets to be the sector’s pioneer and leader in this respect.
Utilizing its strong muscle in online payment systems, TEB supported public sector payments, as well, and provided service for the Supreme Election Council payments in 2017.
CUSTOMER INTERACTION CENTER
Critically positioned with respect to customers and the company, TEB Customer Interaction Center kept investing in its employees, culture, processes and technology in 2017, while delivering an uninterrupted and perfect experience to its customers, and creating added value for the Bank through its implementations that secure productivity.
TEB Customer Interaction Center was positioned as the Bank’s strategic service channel and had a quite efficient and successful year with respect to business results in 2017.
Having acted as the pioneer of the sector in a number of areas, TEB Customer Interaction Center;
The pioneer of Private Banking in Turkey, TEB Private Banking continues to share our experience and expertise in asset management with its clients since 1989. TEB Private Banking has a pioneering approach that seeks to offer its customers with different and alternative investment products besides existing products and services in light of its consultant bank concept.
TEB Private Banking develops solutions that are tailor-made and that will add value to assets by identifying customer needs and expectations through 11 Private Banking Centers and 13 in-branch corners throughout Turkey. Combining TEB and BNP Paribas’ global knowledge and experiences with its innovative approach, TEB Private Banking continues to provide products and services that make a difference.
TEB Private Angel Investment Platform
As the first bank to introduce Turkey to private banking, TEB continues to offer investment consultancy services that matches with clients’ risk preference and long-term investment plans. TEB Private Banking analyzes the assets and financial conditions of Private Banking customers and offer consultation services that include alternative investment products and innovative ideas.
Introduced in 2013, TEB Private Angel Investment Platform offers new investment opportunities to customers seeking investments for their assets in areas outside traditional financial instruments, and also includes entrepreneurs in the economic cycle with their promising projects.
The one and only bank that is mediating for investors to get accredited angel investor license through the Angel Investment Platform channel, TEB Private Banking extends support for the investment processes by submitting documents and information pertaining to the investments made through the network to the Republic of Turkey Prime Ministry Undersecretariat of Treasury.
Through new initiatives that it has included in its structure such as the TEB Private Investor Society, CXO Club and TEB Fintech Future Four as well as the Angel Investment Platform, TEB Private Banking comprises innovation brands that is capable of holding a 360-degree view of the ecosystem, and that will contribute positively to the national economy and the society in the medium- and long-term.
Set up in 2017 at the initiative of TEB Private Angel Investment Platform, the CXO Club meetings– the Leaders of the Future Club- is aiming to pass on information, which is the most valuable asset of our age, to the ultimate decision-makers of the deepest established organizations of the Turkish business world in a bid to transform that information into investment opportunities, both individually and institutionally, in the future.
To this end, the aim is to strengthen institutional collaborations and to be instrumental in vesting the entrepreneurial ecosystem in a much healthier structure through closed meetings tackling digital transformation and the entrepreneurial ecosystem, the actors of the ecosystem and the reasons necessitating participation within the ecosystem, new business models, global trends and concepts, threats for big companies, and so on.
In order to draw the attention of existing and potential Angel Investors included in its network via its Angel Investment Platform to social entrepreneurship and to create financial benefits through initiatives that create social benefits, TEB Private Banking has signed a collaboration agreement with Ashoka, the world’s leading non-governmental organization in this area.
The main objective of the collaboration established between Ashoka and TEB Private Banking for supporting social entrepreneurship in Private Banking area as a first in Turkey is to help social initiatives become stronger and bigger achievers through long-term social investments made into the business idea instead of being supported only with periodic donations. Social entrepreneurship meetings were organized to provide Private Banking customers with a deeper understanding of social impact and to acquaint them with the important considerations of investing in social initiatives. These activities, which are to the benefit of the society, will continue in the future.
TEB Fintech Future Four Program
Designed as a brand new support program for start-ups that have ideas or projects in finance technology, TEB with the goal of using digital intelligence and skills in the financial sector, is expected to add sustainable value to Turkish economy and to be a significant step in Turkey's journey to become the global finance center.
TEB Fintech Future Four is a new fintech corporate incubation program. TEB believes that the vision of the future of the industry will be possible only through an innovation model in which banks and start-ups work together. Through the program, TEB ultimately targets to be the first customer of the fintech entrepreneurs that dream to build the future of banking and finance sector together.
TEB invited and accepted 50 fintech applications on four main titles of Customer First (including sub-titles as Know Your Customer / Data Security ), Digital Consulting Services (including sub-titles as Roboadvisory / Virtual Customer Relationship Management),Big Data (including sub-titles as Real Time Marketing / New Generation Payment) and Artificial Intelligence (including sub-titles as Loyalty/ Gamification) in 2016; the eight finalist fintechs made a final presentation before TEB’s senior management and an independent jury, whereby four fintechs were elected to be included in the development program. In 2017, cooperation agreements were signed with two fintech companies that were supported within the development program, one offering solutions on robo-advisory and the other on chatbots, which were thus integrated into the Turkish banking system. TEB Fintech Future Four program will continue in 2018 and a new competition will be organized for a different program that will also involve foreign fintech accelerators as solution partners.
TEB Private Digital Museum
Besides fulfilling its customers’ financial needs, TEB Private Banking works with the motive of standing by its customers through all their life stages and sponsors a number of select artistic events for this purpose. Housing major art works in various artistic disciplines including painting, miniature and photography at TEB Private Banking centers and showcasing them for its respectable art enthusiasts customers, TEB Private Banking also hosts its customers at photography exhibitions, concerts and sports competitions sponsored by TEB.
In addition to these activities, TEB Private Banking introduced the TEB Private Digital Museum, which is the first digital museum platform in Turkey, with the aim of presenting the stories of long hidden artworks in the collectors’ own words to all art enthusiasts in the digital world. Thus targeting to contribute to development of art collecting in Turkey by inspiring new generation collectors, TEB Private Banking has sponsored BASE, Turkey’s first collective exhibition by new Faculty of Fine Arts graduates so as to encourage investing in young artists, and thereby sustained its support to art.
TEB continues to work towards facilitating its customers’ purchases through faster, easier and more secure methods, and makes sure that cards intermediate payments securely while striving to add to their enjoyment through additional product features on another hand.
During 2017, Card Products Management averaged a monthly turnover of approximately TL 5 billion, and year-end total receivables augmented by 14% in the twelve months to end 2017 to surpass TL 3.4 billion.
Thanks to its infrastructure, TEB is able to securely serve customers almost 100% with no disruption all over the world.
The highlights of the activities and novelties in the card products segment in 2017 are as follows:
Member business sales, marketing and product development activities have been expanded.
TEB kept increasing its segment-specific POS solutions and packages.
In this context, the Bank expanded its service spheres by offering solutions and packages catering to customer needs and expectations, such as Milyem POS for jewelers, Harman Card and Harman POS for the needs of farmers, Doctor POS and Professionals Packages for doctor professionals.
In 2017, TEB increased the number of accepted card brands offered to member businesses to five with the inclusion of TROY branded cards belonging to Turkey’s new payment system platform among the cards welcomed at TEB member businesses besides Visa, Mastercard, Amex and Union Pay. This way, the businesses can accept the cards of five different card brands with just one deal.
In keeping with its consultant bank approach, TEB has been one of the banks that offered the most alternatives to businesses and led the sector through campaigns, which include opportunities intended for end-users and device variety. In 2017, the number of banks with joint POS deals reached seven and the number of brands collaborated for PRDs (Payment Recorder Device) reached nine.
Within the scope of digitalization efforts, the Bank increased its focus on functional initiatives such as receiving POS applications over tablet PCs, DCC, fixed-rate POS, second end-of-day in order to make life easier for customers, and their contents have been enriched.
Offering services at approximately 115,000 points at the end of 2017, TEB POS provides installment and bonus point redemption capability to member businesses with a total of 50,000 POS devices incorporating Bonus advantages. The Bank ranks 4th among banks that do not have its own brand.
With 45,000 PRDs (Payment Recorder Device), register POS market share went above 4%.
In 2017, the POS volume of TEB closed in on TL 20 billion, and about 30% of the total turnover was generated within the scope of the Bonus loyalty program.
DIGITAL BANKING
CEPTETEB Digital Banking Platform
The CEPTETEB Digital Banking Platform, which was launched in March 2015, offers non-financial benefits as well as financial services, and provides service to digital customers 24/7 with a 100% response rate and a response time of 9 minutes on social networks.
The platform expanded its customer base and continued to improve the digital banking experiences of its customers also in 2017. Offering a customer experience that is built on ease and speed, where users can apply to join anytime, anywhere through the “CEPTETEB Customer Relationship Managers”, CEPTETEB has reached a total of 475,000 customers and a deposit volume of TL 4 billion, becoming one of the fastest growing digital banks of Turkey, as of year-end.
CEPTETEB made use of Smart Display Advertising technology, one of Google’s artificial intelligence products, and was published on Google as a case study (for its successful implementation).
Digital channels are being used by 80% of the Bank’s customers.
In 2017, TEB secured increased use of its digital channels and transported 80% of its customers to digital channels. In the reporting period, the Bank’s Internet user base exceeded 1 million, the number of customers actively using the mobile banking application reached 830,000.
With these accomplishments, the share of digital banking in TEB’s comparable financial transactions (money withdrawal, money depositing, loan repayment, bill payment, credit card payment, money transfers) that represent 78% of the Bank’s total financial transactions reached 85%. In 2017, 76% of cash deposited, 89% of cash withdrawals, 83% of credit card payments, 89% of bill payments and 93% of fund transfers were done through TEB’s digital banking channels.
In 2017, the number of TEB ATMs reached 1,743 throughout Turkey and a total of 66 million transactions were carried out through ATMs.
TEB continued to reduce operating costs and its income-expenditure ratio by transferring the branch transactions made during 2017 to digital channels.
TEB steps up its investments in mobile banking
During the reporting period, TEB carried on with its investments in mobile technology with its revamped customizable CEPTETEB mobile application, which offers a rich selection of transactions. The “smart notification” feature of CEPTETEB mobile app sends push notifications to customers in a number of subjects from credit card expenses to tax payment reminders and market data.
CEPTETEB Digital Mortgage was introduced during 2017, a first in Turkey in that it enables completion of mortgage flows digitally without paying a visit to the branch. All processes from the application phase to loan disbursement can be executed digitally, without a trip to the branch.
Addition of CEPTETEB official account to the “find” section of instant messaging application BiP enables BiP users to inquire market data and the closest ATM by boot, and gives access to application screens for a loan, credit card and be a customer through the CEPTETEB account.
As the users started to review and check their financial data more often, the Finance Coach, a personal finance management tool, has been added to CEPTETEB Internet Branch, allowing customers to check their financial budgets online.
This feature grants the users the ability to check their income and expenses on a monthly basis, examine their spending categories, see how much other profiles similar to them make and spend each month. The customers can also determine a monthly budget target, get notifications when they are close to or over their budget so that they can take action, specify a target for the future and configure how much they need to save to reach that target with the help of Finance Coach.
TEB is one of the first banks in Turkey to develop an “Asset and Liability Management” approach. Since 2005, Asset and Liability Management and Treasury Group manages interest rate, liquidity and structural exchange rate risks with the aim of maintaining a sustainable profit for the Bank.
The ALMT Group has adopted a management style based on sound, prudent and long term strategies with its competent and experienced staff and the know-how transferred from the BNP Paribas Group.
In 2017, the Asset-Liability Management and Treasury Group continued to contribute to its subsidiaries to work efficiently in their respective fields within the boundaries set by compliance.
Liquidity ratios were kept within limits.
In 2017, despite the economical and political risks, the Asset and Liability Management and Treasury Group exceeded its targets through proactive hedging strategies in interest rate risk management and contributed significantly to the Bank’s profitability. The actions taken to secure funding diversity and funding maturity extension with the aim of reaching solid and consistent liquidity targets kept the liquidity ratios well above the limits during 2017 which has been a year of squeezed liquidity stemming from a solid credit growth.
Expertise in derivatives, close watch of global and local markets
The Asset-Liability Management and Treasury Group plays a critical role in the Bank’s decision-making processes through the accurate modeling of interest rate and liquidity risks for which it is responsible, and measurement of actualizations. These processes began operating even faster in 2017, thanks to the investments made in information technology.
The Group is monitoring the local and international markets closely to foresee the possible volatilities in the market and to mitigate the structural interest rate risk, FX and liquidity risks in the bank balance sheet. . The specialty that is required to be able to eliminate those risks is another strength of the Asset-Liability Management and Treasury Group.
On the other hand, ALMT is in close communication with all the business lines to ensure the balance sheet is managed with the right costs and competitive prices. Periodical meetings and visits are scheduled to establish an efficient relationship with the branch network.
Funding sources have been diversified.
In 2017, the Asset-Liability Management and Treasury Group aimed at creating a stronger and more consistent liquidity for the Bank by securing a broad base of deposits, which represents one of the main sources of funding. To this end, the right pricing strategies were determined in coordination with each business line and these efforts yielded successful results in the second half of the year.
In line with TEB’s belief in the future of virtual banking, the Asset-Liability Management and Treasury Group maintained its supportive stance for the pricing made through the CEPTETEB channel. For diversifying funding sources, the Group also initiated work towards securing long term funding from international markets. Particularly in the second half of the year, within the favorable market conditions, the frequency of TEB Bond issues has been increased in order to enhance product diversity
Collaboration with BNP Paribas
Information flow between specialist teams continued efficiently in 2017. BNP Paribas know-how in modelling analyses is adapted to the requirements of Turkey by the TEB ALMT modelling team. The Modeling Department has taken over the process of creating the models used in the measurement of interest rate and liquidity risks from the BNP modeling team.
Competitive pricing of export credits and credits to corporate companies have been enabled by the low cost funding provided by BNP Paribas. Additionally, work was carried out to adapt the liquidity and risk management policies implemented by the BNP Paribas Group to the Bank, and experiences were shared for a more efficient liquidity and risk management across the Group.
Wholesale Pricing Department has been set up.
In an effort to increase the efficiency of deposits pricing on the part of the Bank and customers, Wholesale Pricing Department has been set up. The Department pays visits to customers above a certain magnitude and sets deposits pricing in direct contact with the customers.
On the other hand, the Risk Modeling Department has taken over the process of creating the models used in the measurement of interest rate and liquidity risks from the BNP modeling team.
Operating since 2011, TEB Corporate and Investment Banking provides Turkish companies targeting strategic opportunities at home or abroad with consultancy support that will cater to such pursuits, and backs this service with loans and capital market transactions.
The main purpose of Corporate Investment Banking Group is to deliver custom made international solutions with high added value to customers in a fast and effective manner. To this end, BNP Paribas’ competency in global products is presented to the clients, which may result in opportunities of an international scale.
In 2017, the Group carried on with its customer-oriented activities in Financial Markets, Large Corporate Groups, Large Corporate Groups Finance and Corporate Finance.
In 2017, TEB successfully sustained the acceleration it has gained despite the ongoing competition and toughening market conditions. In almost every borrowing and international market transaction realized by the targeted clients, BNP Paribas’ wide range of products and geographical network has been efficiently utilized.
In a year of continued growth in the capital market transactions, new hedging solutions have been developed particularly for FX and interest derivatives to protect clients from risks and presented to the clients.
Large Corporate Groups Department, which was established to develop financial solutions tailored for large corporate clients, kept offering various structured products and funding alternatives to the pioneering companies in Turkey by making use of the BNP Paribas’ worldwide network. Corporate Finance Department served as a consultant in big infrastructure projects in 2017, helped private capital funds in Turkey with their business ideas thanks to the rich client portfolio of TEB and intermediated strategic investments.
A structure that meets all the requirements of Investment Banking has been erected.
The Corporate Investment Banking Group is a structure that combines TEB’s power in the local market with BNP Paribas’ expertise and experience in capital markets, structured finance and consulting.
Capable of single-handedly responding to a corporation’s all requirements in these areas, the Corporate Investment Banking is integrated into TEB’s client portfolio and BNP Paribas’ product range. This allows the Group to benefit from both the growing network of clients within TEB and the strong product specialists at BNP Paribas.
TEB will continue to provide its clients with structured finance, treasury solutions they need for capital market transactions and investment opportunities in the coming period.
TEB Securities Services who has been providing local custody and settlement services originally inaugurated by BNP Paribas in Turkey back in the 1990s, completed a decade in TEB in 2017. Upon the enactment of the new Capital Markets Law ("CML") in 2012, it is now acting in line with the General Custody permission provided by the Capital Markets Board. The new CML and its related communiqués have provided new opportunities for the Turkish capital markets to create and build new products and services in line with the global capital markets.
This structure increased the potential value post-trade providers such as TEB Securities Services can create.
TEB Securities Services serves its clients with its team of specialists at the TEB Head Office. The department offers post-trade services including local custody and settlement to its local and global clients in cooperation with BNP Paribas Securities Services, which is Europe’s largest custodian bank. With its innovative and meticulous approach, the department also creates solutions for post-trade needs pertaining to capital market instruments, which may arise subsequent to the investment decisions of financial institutions, institutional investors, asset managers, asset owners, corporates and issuers.
TEB Securities Services provides;
TEB Securities Services sustained its successful performance in 2017
Sustaining its successful performance of previous years in existing products and services in 2017, TEB Securities Services acquired new customers and adeptly handled the transactions of its existing customers. The department restructured the asset and fund services to be offered to third-party asset managers.
In the below mentioned surveys administered by the market’s global leading companies in 2017, TEB Securities Services ranked first on the basis of its clients’ comments and scoring:
TEB is the choice of customers that seek much more than a custodian bank
TEB having the global perspective coupled with a pioneering and client-focused approach remains the choice of clients seeking more than a custodian bank for post-trade services in capital markets.
TEB Securities Services closely monitors all the developments in the capital markets and the banking sector realized by regulatory agencies, Capital Markets Board of Turkey (CMB), Takasbank (CCP & Istanbul Clearing, Settlement and Custody Bank Inc.), Borsa Istanbul (BIST) and Merkezi Kayıt Kurulusu (Central Registry Agency, local CSD) from legal, technological and operational aspects. The department promptly responds to any change that may have an impact on the securities services business with investments in new products and technology.
The department stood out from the competition with its investments aimed at achieving operational excellence with priority given to helping its clients expand their businesses.
The objective of the department is to implement innovative solutions that will contribute to the development of the capital markets by pioneering post-trade services and the Bank.
In March 2017, the infrastructure of BIST Futures and Options Market (VIOP) platform has been migrated into the BISTECH Platform that has been developed with Nasdaq OMX. In June 2017, Takasbank became the central counterparty (CCP) in BIST Equities Market. The implementation of the CCP model in BIST markets have boosted the confidence of especially foreign investors in the Turkish capital markets and have contributed to the growth and development of the market. The platform change in the BIST Futures and Options Market enabled structural changes in the operational set-up of the market that foreign institutional investors have been demanding for years.
After the CCP implementation in BIST Equities Market, TEB Securities Services has analysed the evaluations for the impacts of this change in the market and the services offered to its clients.
Takasbank is expected to become CCP in BIST Fixed Income Market in 2018. The introduction of the CCP concept is a vital development in the Turkish capital markets.
New cooperation and product developments continued in 2017
TEB Securities Services is a part of BNP Paribas Corporate Investment Banking (CIB) and acts as the Turkey arm of BNP Paribas Securities Services. It works in close proximity to BNP Paribas entities with a consultant’s approach, providing continuous information about the Turkish market and new capital market instruments.
The department also works in close collaboration with other TEB affiliates active in capital markets. In particular, the services related to BIST Futures and Options Market offered in partnership with TEB Investment has brought considerable success in recent years. This has enabled TEB Investment to keep its place as one of the brokers with highest business volumes in BIST.
Collaborations with professional associations are ongoing. TEB Securities Services took part in the Content Committee of the Capital Markets Congress 2017 organized by the Turkish Capital Markets Association (TCMA) and which it also sponsored with a panel entitled “Five Reasons to Keep Investing in the Turkish Capital Markets”.
The most notable product that TEB Securities Services department developed in 2017 was the asset and fund services for portfolio management companies. TEB Securities Services finalized the implementation of the product in line with the new CML obligations and fully ready to offer these services to third party portfolio management companies.
New Retail Banking Products
In 2017, TEB expanded the scope of applications received by the call center to fulfill retail customers’ cash needs with the addition of loan disbursement.
This way, the call center started to be used as a loan disbursement channel in addition to TEB branches, mobile banking and Internet banking. In the reporting period, the infrastructure for lending at the point of sale has been established, and lending became possible through in-network dealers.
CEPTETEB Digital Mortgage was introduced during 2017, a first in Turkey in that it enabled completion of housing loan flows digitally without paying a visit to the branch. All processes from the application phase to loan disbursement can be executed digitally, without a trip to the branch.
As the users started to review and check their financial data more often, the Finance Coach, a personal finance management tool, has been added to CEPTETEB Internet Branch, allowing customers to check their financial budgets online.
This feature grants the users the ability to check their income and expenses on a monthly basis, examine their spending categories, see how much other profiles similar to them make and spend each month. The customers can also determine a monthly budget target, get notifications when they are close to or over their budget so that they can take action, specify a target for the future and configure how much they need to save to reach that target with the help of the Finance Coach.
Customs Duty Payment with SMS
In 2017, TEB developed and introduced a service where customers can pay the customs duty by SMS. The customers are able to effect their Customs Duty payments arising from their foreign trade transactions with a single SMS. The system is available on a 24/7 basis.
Special Consumption Tax and ASBİS Payments with SMS
In 2017, TEB also developed and launched the Special Consumption Tax (ÖTV) and ASBİS Tax payment with SMS service that allows the payment of the Special Consumption Tax code no. 9077 levied on motor vehicles and ASBİS Motor Vehicle Registration Certificate Cost code no. 9247 arising from the registration procedures of brand new vehicles with a single SMS. The system is available on a 24/7 basis.
Industry 4.0 Meetings under the TEB SME Academy roof
Value-added services that TEB configured in keeping with its mission as the “Consultant Bank” of SMEs are being developed in a format that will also guide the SMEs in their technological transformation. “TEB SME Academy Industry 4.0 Gatherings” began to be organized as part of the training programs offered in different cities under the TEB SME Academy roof intended to drive businesses ahead in the competition to make sure that the SMEs adapt to “Industry 4.0” concept. First initiated on 14 April 2017 in İstanbul, the gatherings continued in İzmir, Konya, Denizli and Adana, and training sessions were held in organized industrial zones known as the heart of the industry, in addition to meetings held in cities.
The new channel of TEB SME TV was launched: Industry 4.0 Guide
The first online TV channel dedicated to SMEs and differentiating the Bank in the sector, TEB SME TV continued to be a trustworthy online information/news source in 2017 with programs dedicated to the business and career development of the business world in general and SMEs in particular.
Besides news that take the pulse of the economy, the markets and business life, TEB SME TV focused on guiding the SMEs about technology-oriented production, Industry 4.0 process on the basis of sectors, how digitalization influences business conduct and how companies should adapt to the process. Following “Technological Solutions”, “Women Managers’ Screen” and “Career and Personal Development” thematic channels that went live in earlier years, “Industry 4.0” channel began broadcasting SME success stories so as to be inspirational for adaptation to the process. The number of news content exceeded 10,000 in 2017 on TEB SME TV, which served to acquire a monthly average viewing figure of 1.5 million.
TİM-TEB Start-Up Houses has given the vision of entrepreneurship to Anatolia and has become a supporter of the activities to develop the country's potential
In 2017, in addition to 10 cities where TİM-TEB Start-Up Houses are located, six new cities, namely Antalya, Tekirdağ (Çorlu), Edirne (Keşan), Kırklareli (Lüleburgaz), Rize and Samsun, have been incorporated within the sphere of activities. A total of 9,950 entrepreneurs-to-be and active entrepreneurs have been reached on the basis of 315 training programs organized under 23 different headings in 17 cities in total.
In a bid to familiarize young students with entrepreneurship, we have launched Wake Up training programs in addition to TİM-TEB Start-Up Houses programs. 21 programs were conducted in 10 cities within the scope of WakeUp sponsored for university students at TİM-TEB Start-Up Houses. A 252-hour training program was conducted with the attendance of 566 students selected from among 13,134 applications in 10 cities. The overall program format was designed to help students get acquainted with the entrepreneurship culture. In the programs, 144 business ideas emerged by the teams set up in all cities. The TEB Little Makers at Work project launched in 2017 with the slogan “Maker Children of Today, Big Entrepreneurs of Tomorrow” traveled to ten cities where TİM-TEB Start-Up Houses are located, and got together with 3rd and 4th graders. Having made its finale at Ataşehir TİM-TEB Start-Up Houses, the project has been instrumental in providing comprehensive training under the four main headings of “3-D printers”, “Arduino”, “Coding” and “Makey Makey” to over 500 students from 72 state schools across Turkey.
T (Commercial) Plate Number Loans
Under the TARES (Movables Pledge Registry) system established based on the Law on Pledges over Movable Property that entered force on 1 January 2017, plate numbers owned by retail customers who are taxpayers subject to the basic system began to be disbursed general purpose loans at affordable interest rates with a maturity of 48 months.