TEB 2018 Annual Report

Presented below is a summary of TEB’s shares of the banking industry’s basic indicators as of 31 December 2017 and 31 December 2018 together with information about changes in those shares.

Looking at the highlights of the Bank’s performance in 2018 as compared with that of 2017 we observe that:

Total assets increased by 13% in 2018.
Shareholders’ equity reached TL 9.739 million.
Total deposits accounted for a 66% share of the Bank’s balance-sheet.
Total credits, which is the most significant indicator of the Bank’s support for its customers and the economy, has been TL 64 billion in 2018 which represents 65,9% of total assets.
NPL ratio has been 4,15 % which reflects the Bank’s robust credit policies and prudent risk management approach.
Loan-to-deposit ratio has been realized as 100%, capital adequacy as 16.93% and return on equity as 11,18%.

TEB’S POSITION IN THE INDUSTRY

(million TL)	31.12.2018
(million TL)	TEB	Industry	Bank’s Share (%)
Total Assets	96.997	3.867.135	2,51
Total Loans	63.999	2.457.276	2,60
Total Deposits	64.217	2.163.611	2,97
Number of Branches	503	11.565	4,35
Number of Employees	9.487	207.716	4,57

Resource (for industry figures): BRSA’s December 2018 monthly bulletin

AWARDS

In 2018, TEB’s activities have been recognized and rewarded as always both in Turkey and abroad.

RETAIL BANKING
AWARD	CATEGORY/ RANKING	PRODUCT / SERVICE
Global Business Excellence Awards	Outstanding Community Initiative Category 1.st Place	TEB Family Academy
Altın Örümcek (Golden Spider)	Banking and Finance Category - Mobile Application 1st Place	CEPTETEB
Altın Örümcek (Golden Spider)	Most Accessible Mobile Application 1st Place	CEPTETEB
PRIVATE BANKING
AWARD	CATEGORY/ RANKING	PRODUCT / SERVICE
Global Finance	Best Private Bank Turkey 2019
World Finance	Best Private Bank Turkey 2019
International Finance	Most Innovative Private Bank 2018
CORPORATE BANKING
AWARD	CATEGORY/ RANKING	PRODUCT / SERVICE
Asian Banking and Finance 2018	Turkey Cash Management Bank of the Year	Cash Management
Best Business Awards	Best New Product /Service / TEB Tax Payment via SMS Account	Cash Management
Euromoney 2018	Best Cash Management Service Quality Bank in Turkey	Cash Management
Euromoney 2018	2nd Place “Market Leaders in Turkey”	Cash Management
SME BANKING
AWARD	CATEGORY/ RANKING	PRODUCT / SERVICE
CSR EXCELLENCE AWARDS	Corporate Citizenship - Bronze Prize	TEB SME Consultancy Marathon Program
Global Business Excellence Awards	Outstanding Event	TEB SME Academy Industry 4.0 Meetings
Best Business Awards 2018	Best New Product	My Weather
Best Business Awards 2018	Best Customer Focus	Consultancy Marathon Program
HUMAN RESOURCES
AWARD	CATEGORY/ RANKING	PRODUCT / SERVICE
Top Employer	Top Employer of 2018 in Turkey and Europe
BRAND AND COMMUNICATION
AWARD	CATEGORY/ RANKING	PRODUCT / SERVICE
IAB Mixx Turkey	Mobile Campaigns / Bronze	We Are Tennis
Communicator Awards	Co-creation / User generated content / Award of Distinction	We Are Tennis
Communicator Awards	Use of photography / images / Award of Distinction	We Are Tennis
Stevie Awards	Sales: Other / Gold	We Are Tennis
Stevie Awards	Marketing Campaign of the Year - Entertainment & Sports / Silver	We Are Tennis
Stevie Awards	Communications or PR Campaign of the Year - Social Media Focused / Silver	We Are Tennis
Inflow	Best Healthy Life Influencer Campaign / 1st Prize	We Are Tennis
Felis	Social Media Campaign / Achievement Award	We Are Tennis
Felis	Celebrity Integration in Social Media/ Felis Award	We Are Tennis
Felis	Visual Story Telling / Felis Award	We Are Tennis
Felis	Real Time Data Usage / Achievement Award	We Are Tennis
Felis	Creative Celebrity Use / Achievement Award	We Are Tennis
Felis	Celebrity, Influencer, Expert Use in Social Media / Achievement Award	We Are Tennis
Felis	Finance and Economy / Achievement Award	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Online Advertising-Social Media for Online Advertising & Marketing / AWARD OF EXCELLENCE WINNERS	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Film / Video-Social Issues / Responsibility for Film / Video / Television /AWARD OF EXCELLENCE WINNERS	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Film / Video-Motivational for Film / Video / Television / AWARD OF EXCELLENCE WINNERS	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Content & Marketing Campaign-Branded Social Campaign for Social / AWARD OF EXCELLENCE WINNERS	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Marketing-Corporate Image for Interactive Marketing / AWARD OF EXCELLENCE WINNERS	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Campaign-Video for Marketing Effectiveness / AWARD OF DISTINCTION	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Video-Social Video for Online Video / AWARD OF DISTINCTION	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Online Advertising-Video for Online Advertising & Marketing / AWARD OF DISTINCTION	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Branded Content-Social for Online Video / AWARD OF DISTINCTION	#ElAlemNeDer (#NoMatterWhatTheySay)
Communicator Awards	Features-Video or Moving Image for Interactive Marketing / AWARD OF DISTINCTION	#ElAlemNeDer (#NoMatterWhatTheySay)
Stevie Awards For Women in Business	Communication or Public Relations Campaign of the Year Communications Research Category / Gold	#ElAlemNeDer (#NoMatterWhatTheySay)
Stevie Awards For Women in Business	Communication or Public Relations Campaign of the Year Public Relations Research Category / Gold	#ElAlemNeDer (#NoMatterWhatTheySay)
Stevie Awards For Women in Business	Social Responsibility Regarding Women Category / Silver	#ElAlemNeDer (#NoMatterWhatTheySay)

CORPORATE BANKING GROUP

CORPORATE BANKING

Supported 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 125 million and above.

In the corporate banking business line TEB serves in the areas of:

trade finance,
Working capital and investment loans,
Cash management and risk management products,
Standard and derivative treasury products,
Corporate investment banking products,
Commodity finance &
Project finance.

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 2018, TEB further reinforced 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 line with its goal of being “the first bank that comes to mind of customers” in the corporate banking business line.

GLOBAL TRADE SOLUTIONS AND 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 in foreign trade.

Among the world’s top three banks in foreign trade finance, BNP Paribas ranks first in Europe. BNP Paribas’ operations in 73 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 73 countries.

Low-cost money transfer services

Through its correspondent network, TEB facilitates money transfer services for its customers that require transferring money in local currencies of different countries owing to their investments in such countries.

Facilitating cross-border money transfer in 135 different currencies to more than 180 countries, TEB also offers cash transfer services to customers who want to make lump sum payments at competitive costs through its wide correspondent network.

Syndicated loan renewed at 101%

TEB has renewed its syndicated loan with a renewal rate of 101%, 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.

The loan consists of a portion of EUR 433,5 million and USD 33,5 million with a maturity of 367 days and the agreement was signed on 11 October 2018, which was participated by 17 international banks.

All-in-cost of the portion to be allocated for financing of foreign trade transactions with a maturity of 367 days is Euribor+2,65% and Libor+2,75%, respectively.

TEB Foreign 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.

Distinctive 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 16,6% of Bank’s performing loans portfolio.

TEB has 5,3% market share in export loans, which puts the Bank in the 6th place.

In terms of number of transactions, TEB mediated 6,2% of counter-guarantees provided to Turkey from outside and 5,2% of export letters of credit.

Every TEB Trade Center employs a team whose members have expertise in “structured trade and commodity finance”. This team devises financing solutions that are specifically tailored 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 grains, 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.

With its licensed warehousing activities which commenced in early 2013, TEB was the first bank to offer structured commodity financing credit in Turkey. The Bank has provided credit facilities by accepting product certificates as collateral issued against commodities being held in the first licensed warehouse in Turkey. 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.

TEB actively plays a role in the market as a provider of one of the solutions offered to exporters which is rediscount credit opportunities the Central Bank of Turkey allocates to Turkish exporters.

Foreign trade trainings

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

BPO is a new trade finance solution which has been issued by the International Chamber of Commerce (ICC) in 2013.

BPO has been designed to facilitate trade via open account and to combine the speed of open account payment method with the security of letter of credit.

Offering innovative payment solutions, TEB was one of the first two banks in Turkey to introduce BPO to its customers. TEB’s introduction of BPO makes it the 16th bank in the world to do so and the 5th in Europe, Middle East and Africa.

Also, TEB was the first in the world to carry out BPO transactions that include funding for the importers.

Having attained a significant rise in the number of customers regularly using BPO in 2018, 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.

CASH MANAGEMENT

TEB Cash Management will continue its efforts in 2019 to be recognized as the first bank that comes to mind. In this context, it will take steps to increase its wallet share of its strategic customers in each business line and continue to invest in its innovative product range.

TEB has been awarded in a number of international competitions thanks to its constant improvements in innovative products in cash management.

Euromoney Magazine, one of the most influential publications in world finance, awarded TEB in two different categories at its Euromoney Global Cash Management Survey this year. Elected as the “Turkey’s Best Service Providing Bank in Cash Management”, TEB took the 2nd place in “Market Leaders” category.

TEB was granted the “Turkey’s Cash Management Bank of the Year” award for the fifth time in 2018, at one of the most prestigious award programs of international finance and banking world, Asian Banking & Finance. TEB received this award based on the opinions of judges from world’s top international consulting firms: KPMG, Deloitte Consulting and Ernst & Young Advisory.

In 2018, TEB developed a service where customers can pay Special Consumption Tax via SMS and presented this service to its customers. The product received the prize at Best Business 2018 awards in “Best New Product/Service of the Year” category.

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 2018, customers were presented 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 in the years to come.

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” motto, calling upon the resources of its own extensive network of domestic branches in Turkey as well as those of BNP Paribas’ 196 thousand employees, over 23 million customers, more than 7 thousand branches and 99 trade centers all located in 73 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 activities through powerful synergy

With its cross-selling culture focused on “creating value for the group” strategy, Corporate Banking adopts a customer-oriented approach in its product and service processes. In 2018, TEB continued to provide end-to-end solutions to corporates at all business lines, including their whole ecosystem with a holistic approach offering TEB Group’s range of financial and non-financial products and services.

TEB Corporate Banking aims to create value for its customers, primarily the ones who need investment banking products and services, by taking advantage of strong international network and product line of BNP Paribas Group. In order to achieve this goal, TEB Corporate Banking provides the following services:

support for commercial and investment activities,
local and international resources for the funding of foreign trade activities,
financial advisory
M&A advisory
project finance facilities
mediating in international bond issues and public offerings.

In addition to the synergy developed with BNP Paribas, Corporate Banking conducts cross-selling and business development activities together with the Bank’s other business lines, in order to create value for corporates in all areas of their interests such as agricultural banking, consumer finance, housing finance projects, payment systems with card and POS services, solutions for dealers, corporate finance and salary agreements.

TEB’s domestic and international product and service variety stands out in its services provided through its affiliates as well:

TEB Arval offers its international experience to the fleet management sector as a solution partner for Corporate Banking customers’ fleet management activities and provides fleet rental services to more than one million vehicles worldwide,
BNP Paribas Leasing Solutions provides financial solutions to Corporate Banking customers for their investments in equipment and real estate,
TEB Faktoring, with over 20 years of experience, was ranked 1st for the fifth time for its domestic and export factoring transactions by Factors Chain International, the world’s largest factoring chain,
TEB Investment carries out mediating activities for its customers’ public offerings, debt instruments, domestic and international transactions and provides investment consultancy services,
TEB Portfolio provides alternative fund management services for its Corporate Banking customers and many funds, in which it is the founder and director,
BNP Paribas Cardif Pension offers a range of advantageous services to its customers in meeting their group pension and insurance needs with its unique business model, which rendered fast and quality service since 2017, particularly within the frame of the “Auto Enrolment System”.

BUSINESS DEVELOPMENT ACTIVITIES

Taking customer focus and satisfaction as the baseline, business development activities continued in 2018 keeping a close watch on technological advancements and delivering comprehensive digital banking solutions to corporate banking customers.

Progress has been achieved in increasing service quality and efficiency, primarily in Foreign Trade, in cooperation with BNP Paribas Group and partnerships with industry expertise.

Within the context of business development activities, serious steps have been taken to develop customer base and collaborations with major non-governmental organizations, industry and trade exchanges were realized.

Corporate banking customers’ needs were supported through new protocols with Credit Guarantee Fund (KGF) in 2018 in addition to the ones realized in 2017. Additionally, Investment Loans with Interest Support were offered to corporate customers to decrease finance cost of their R&D and environmental investments in cooperation with the Undersecretariat of Treasury.

PUBLIC SECTOR BANKING

Public Sector Banking Department, which has been set up under Corporate Banking, continued its operations in 2018 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.

It is intended to meet public sector’s needs in foreign trade, structured trade finance, cash management, and alternative funding facilities with BNP Paribas’ industry expertise and support for longer term and lower-cost funding.

In 2018, efforts have been made to develop relationships with new public institutions and satisfy their banking needs, as well as to make alternative funding facilities more accessible for public institutions in accordance with their medium and long term strategies, primarily through capital markets.

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 accordance 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 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:

Proactively evaluates achievement of target and budget data through tracking department, branch and portfolio performances;
Cooperates with the Compliance Department to closely monitor the legal obligations introduced by the Anti-Money Laundering Law and by regulations and communiqués related to the enforcement of this law. The Department ensures necessary information provision within the Corporate Banking Group to secure compliance with professional standards based on the applicable law and BNP Paribas’ policies, and provides the necessary coordination between the Business Line and the Compliance Department.
Undertakes an active role in acting as the point of contact and coordination with the Bank’s support units and related units in the BNP Paribas Group with respect to strategy and project coordination.

THE SME BANKING GROUP

TEB carries out its SME Banking activities under its “consultant banking” approach since 2005.

TEB constantly improves the products and services it offers to SMEs within the scope of SME Banking activities and assists them with diverse solutions introduced in various areas such as growth and competition that represent the biggest challenges for 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. In this context, the Bank provides solutions in 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.

Guidance for SME’s technological transformation

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 be considered 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, adopts 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 digital transformation 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 SME Academy Industry 4.0 Gatherings which were organized to make sure SMEs adjust to the changing world compete in the global markets and adapt to the “digital transformation” process continued in 2018 in major organized industrial zones known as the heart of the industry.

Through gatherings held in İstanbul İkitelli OSB, Bursa Nilüfer OSB and Ankara OSTİM, key information has been shared with SMEs to increase their awareness and knowledge on “Digital Transformation”.

Through these gatherings, tech startups within the scope of TİM-TEB Start-up Houses and SMEs got together in a common platform and had the opportunity to meet potential customers. At the same time, SMEs had the chance to access domestic hardware and software solutions they need for their technological transformation which will provide them with competitive advantage at reasonable costs.

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 3.000 businesspeople.

Under the TEB SME Academy, the Bank reached more than 30.000 business people in 147 events as at year-end 2018.

Support for SMEs to accomplish their short and long term strategic goals

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 and what kind of a managerial strategy they should adapt.

TEB SME Consultancy Program

During the process of digital transformation, it is 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.

TEB SME Consultancy Program which started in 2007 aims to equip branch customer representatives with additional skills to use towards the mission of being an SME Consultant Bank.

With the strategic perspective gained at this program, TEB customer representatives provide guidance to SME’s on their journey of sustainable growth.

TEB SME Consultancy Program continued with new classrooms in 2018. In addition to existing guidance and expertise programs, Technological Proficiency training program has started which aims to equip customer representatives with skills to help them get to know the dynamics of technology oriented production firms and prepare short and long term strategic development plans for them.

In 2018, 4 new classrooms were opened and 122 customer representatives finished their trainings and graduated within the scope of TEB SME Consultancy Program.

Guides and specialists trained in TEB SME Consultancy training programs since its inception in 2007 has touched hundreds of SMEs, prepared their strategic roadmaps and accompanied them in their growth journey with teams from regions and headquarters within the scope of TEB SME Consultancy Marathon Program.

TEB SME TV-guiding SMEs in a digitalized world

TEB SME TV is the first internet-based television in Turkey dedicated to SMEs.

TEB SME TV which differentiates TEB in the industry reached a news content of more than 10.000 and a monthly viewing figure of 2 million in 2018. It continued to be a trustworthy online information/news source with programs dedicated to the business and career development of the business world in general and SMEs in particular.

In 2018, 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 Manager Screen” and “Career and Personal Development” thematic channels that went live in earlier years, “Industry 4.0” channel went on air and began broadcasting SME success stories so as to be inspirational for adaptation to the process.

Products and collaborations that will provide competitive advantage for SMEs

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. TEB offers services to companies who intend to make exports with its informative digital service www.tebledisticaret.com (foreign trade with TEB).

tebledisticaret.com 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.

tebledisticaret.com contains export information SMEs need such as market data for more than 160 countries, potential customer lists, transportation tax rates, up-to-date information on trade fairs and more than 10.000 sectoral reports that include market research about foreign markets.

Users can access detailed information about the general profile, geographic location, economic conditions, cultural differences 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 and industry 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.

Support for the real sector

TEB SME Banking made another collaboration to support SMEs achieve their sustainable growth and foreign trade targets. TEB’s cooperation with Association of Turkish Machinery Manufacturers (MİB) which is one of the key representatives of machinery production industry, increased its support to the real sector.

In accordance with the terms of the agreement, joint projects will be conducted and implemented in areas such as technology, entrepreneurship and production with mentoring programs. In addition to that, TEB will provide tailored financial services and products for MİB members.

TEB’s support for MİB members will not be limited to financing. In 2019, TEB will provide assistance on developing their sectoral strategic plans to help them stand out in competition and increase their business volumes.

TEB will be a sponsor in Turkey Machine Industry Future Strategies Conference where alternative strategies for machine industry manufacturers and their stakeholders will be discussed. TEB will also coordinate growth and development programs to contribute to MİB members’ exports and Turkish economy.

Within the scope of this collaboration, events will be organized to bring together MİB members, who carry out approximately 60% of Turkey’s machine exports, their suppliers and tech start-ups who are within TEB’s entrepreneurial ecosystem. MİB members and organizations within TEB’s entrepreneurial ecosystem will meet in events such as Technoday and Network Day to create common values and this synergy will provide opportunity for SMEs to reach domestic technological solutions to meet their digital transformation needs at lower costs.

TEB reaches SMEs through social media platforms

According to Hootsuite 2018 data, Turkey is at the 13th place in social media usage in the world, with approximately 51 million users. SMEs’ activities on social media are also increasing every passing day.

TEB SME Banking continues its contact with SMEs through social media platforms such as Facebook, Twitter and YouTube.

Active communication with customers continued in 2018 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 2018, @tebkobi account on Facebook has over 52 thousand followers, @teblekadin account has more than 49 thousand, and @teblegirisim account has more than 49 thousand, whereas on Twitter, @tebkobi has over 17 thousand followers, @teblekadin has more than 22 thousand and @teblegirisim has more than 12 thousand followers.

Three international awards for non-financial services of TEB SME Banking

Two initiatives of TEB SME Banking have captured the attention of international organizations; Academy Industry 4.0 Gatherings which support SMEs in their global competition and their adaptation to Industry 4.0 process; and TEB SME Consultancy Marathon Program where SMEs are individually analyzed and their strategic roadmaps are drawn.

TEB SME Banking has been awarded by two organizations in 2018. TEB SME Consultancy Marathon Program received The International CSR Excellence Award in Corporate Citizenship category and Best Business Award in Best Customer Focus category.

TEB SME Industry 4.0 Gatherings also received Global Business Excellence Award in Outstanding Event category.

MICROBUSINESS BANKING

With its Microbusiness Banking segment, TEB continues catering financial and non-financial needs of micro businesses.

TEB microbusiness customer representatives continued their guidance to tradesmen and small enterprises in 2018 with company analyses and roadmaps.

In 2018, 44 customer representatives attended TEB Microbusiness Guidance trainings within TEB SME Consultancy Program.

Number of TEB Business Guides reached 181 in 2018.

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.

The Boss Card offers businesses operating in the tourism sector seasonal loan payment options. They are able to make their loan repayments in May-October period in two installments 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. Additionally, the Card provides a 50% discount for parking in contracted airport car parks and free airport lounge access in contracted airport terminals.

TEB DIY Expense Packages allows businesses manage their banking expenses based on their needs. Accordingly, businesses can design their own packages for transactions they use most considering their budgets.

Practical Messenger product allows customers to inform the Bank about topics they want to follow up related to daily banking transactions by sending text messages and/or e-mail.

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. Micro business owners are advised on how to grow their businesses or how to use risk management to meet their specific needs.

AGRICULTURAL BANKING

TEB carries on activities for the development of agricultural sector and meeting producers’ needs.

TEB Agricultural Banking aims to stand by the producers with agricultural banking products which are aligned with the needs of the sector and producers, and designed according to the conditions and dynamics of agricultural production.

Carrying out its operations with appropriate products, pricing and operations, 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 2018, 19 agricultural customer representatives graduated from the program. At the end of the year, the number of TEB Agricultural Specialists reached 64 who provide 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.

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 solution proposals were discussed.

TEB attended 10 domestic and international agricultural fairs in 2018 and promoted its financial and non-financial products.

Celebrating World Farmers’ Day on 14 May with events and campaigns, TEB offered an introductory 50% discount on “My Weather” services.

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.

Since 2007, TEB has been standing by the producers with its products and services in agricultural banking and continues to offer favorable opportunities and develop collaborations.

TEB continues its collaborations with various organizations to expand the use of “TEB Harman Kart” (TEB Harvest Card), which plays an important role in procuring essential inputs for farmers, with once-a-year payment term at harvest period and advantageous interest-free period.

Shell, Petrol Ofisi and OPET, the largest three brands in the fuel oil industry, and İGSAŞ Gübre, a solid fertilizer brand, are covered under Harman Kart POS infrastructure.

Technological solutions from TEB to ease farmers’ lives

With products and services in Agricultural Banking TEB continues to support Anatolia’s value, farmers. Operating with the mission of being the consultant of the farmer, TEB opened up its technological infrastructure for their use.

With Lexus, the automated surveying system for producers wishing to obtain cash loans collateralized with land lien, the appraisal process can be completed within seconds as opposed to former applications.

Making use of the Farmer Registry System (ÇKS) integration, TEB can meet financial needs of farmers without any additional documents.

With “My Weather” service launched in 2018, TEB sends farmers customized information based on field location and crops being produced as well as detailed three-day meteorological forecasts of humidity, precipitation and wind data, warnings and suggestions regarding the timing of fertilization and pest control.

“My Weather” service received the first prize in Best Business Awards in 2018 in Best New Product and Service category.

STARTUP BUSINESS BANKING

TEB keeps reinforcing the entrepreneurial ecosystem.

TEB Start-up House model was developed to reach entrepreneurs all around the country, increase the number of tech start-ups, introduce their innovative business ideas to the economy and enable their healthy growth. The first house was launched in İstanbul in 2013 and the model was expanded all around Turkey with collaboration with Exporters Association of Turkey (TİM).

As of 2018 year end, start-ups located in 10 cities, İstanbul, İzmir, Konya, Gaziantep, Denizli, Bursa, Trabzon, Edirne, Mersin and Erzurum can reach end-to-end support provided by TİM-TEB Start-up Houses.

At TİM-TEB Start-up Houses, aside from strength and experience of TEB and TİM, the effectiveness of the business model takes the leading role.

Through Start-up Business Banking, entrepreneurs capture the chance to access funding, public sector incentives, to present their innovative products on domestic and international platforms, to grow and further improve their companies.

TİM-TEB Start-up Houses provide specific programs for technology companies at different stages such as incubation, acceleration and development to support their sustainability and rapid growth, steering the ecosystem at the same time.

TİM-TEB Start-up Houses offered start-ups the advantages of approaching the business plan methodology with a perspective appropriate for Turkey and achieved to provide unique, local and effective models.

As a result of this level of contribution, TİM-TEB Start-up Houses enjoyed the power of being a development program which tech start-ups trust and want to be a part of, who are already being supported by techno cities or technology transfer offices.

TEB supports all start-ups whether at early or later stages of development.

Start-up Houses, which conduct entrepreneurship programs at universities such as Wake up and Let’s up, prepare projects that will bring young entrepreneurs who see entrepreneurship as a career into the ecosystem.

Start-up House trainers paved the way for inclusion of the “Entrepreneurship and Project Management” heading within the course programs at seven 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.

Since 2013, TİM-TEB Start-up Houses aims at fast commercialization of companies located at techno cities through new breakthroughs under Start up and Level up programs. With this new growth approach to increase turnovers at considerable levels, companies are directed towards effective marketing methods, efficient R&D and product development processes and a whole new financial perspective starting with pricing. In an effort to accomplish these, TİM-TEB Start-up Houses collaborate with techno cities, technology transfer offices and development agencies in line with their collaboration and capacity development mission since their inception.

Turkish technology firms work on growing fast at their own industries under Start up and Level up programs. Besides technological entrepreneurship and innovative product efforts, technology firms also need to develop their corporate structures in order to reach a size of TL 100-150 million.

In order to facilitate this, TİM-TEB Start-up Houses initiated Grow up Advanced Growth Support programs and invite the most successful tech start-ups to join this program. These programs provide support for corporate and sustainable growth models and they constitute a significant step towards supporting the unicorn technology firms to grow globally. TİM-TEB Start-up Houses’ efforts have been rapidly recognized by not only technology start-ups but also corporate entities.

“Start-up to Corporate” model which brings start-ups and corporate firms together has been introduced by TİM-TEB Start-up Houses for the first time in Turkey under Grow up program.

The program turned out to be a platform where tech start-ups request support in growth management from leading corporate technology firms.

Offering specialized support for entrepreneurs and following the needs of technology firms, TİM-TEB Start-up Houses initiated the Global up program in 2018 which aims to increase export potential of start-ups and to help them reach global markets.

Until today, more than 700 business ideas have been accepted in Start-up Houses out of 5.100 applied. TL 151 million has been invested at more than 80 entrepreneurs and more than 290 entrepreneurs had the opportunity to obtain government incentives at approximately TL 100 million.

TEB listens to tech start-ups, brings together potential customers and investors.

In 2018, TEB Start-up Banking was the pioneer in bringing start-ups and corporates together and facilitating the initiation of cooperation between parties.

Start-up2Corporate meetings and activities enabled companies to follow up technological trends and reach new technology products and services while start-ups had the opportunity to reach target customers. In 2018, 35 tech start-ups got together with executives from Oracle, Zurich Sigorta, TEB Faktoring, MİB (Association of Turkish Machinery Manufacturers), BUSİAD (Bursa Industry and Business Association) and Gülermak (a heavy industries construction firm).

To facilitate meeting with new technology trends and closely following up the improvements in technology, the Bank has organized start-up presentations to TEB Executive Board. Entrepreneurs who can offer innovative technology solutions applicable to TEB are given the chance to meet with Information Technologies and Operation directors of the Bank.

Under SME Banking, “Meet up” gatherings were organized in order to increase awareness on technological developments and to allow tech start-ups to introduce themselves. At these meetings 8 start-ups got together with executives of technology firms.

At the ecosystem gathering organized at İstanbul Start-up House on 5 September 2018, start-ups met with TİM and TEB network. This meeting allowed start-ups to get to know significant investors, mentors and business people of the ecosystem and discuss potential business cooperations.

TEB is the only bank among the 30 implementing institution of TÜBİTAK’s BiGG Program

TEB has been accepting applications from entrepreneurs for the last four years as the only private financial institution among the accredited enterprises under TÜBİTAK’s Young Enterprise (BİGG) Program. The Bank was one of the top three enterprises to have intermediated the allocation of the highest amount of grants among 30 implementing institutions.

In 2018, 1.000 applications for technological business ideas were received from 64 cities in Turkey and the Bank supported entrepreneurs to turn these ideas into commercial structures and receive grants.

So far, TEB intermediated funding support worth TL 9,6 million for a total of 64 technological business ideas.

The most global acceleration program has been initiated by TEB Start-up Banking.

TEB initiated activities to expand the entrepreneurial ecosystem in Turkey and to increase the level of support provided to entrepreneurs to improve export of innovative and technological business ideas from our country to the world.

TEB Start-up Business Banking collaborated with Middle East Technical University (METU) for the most global acceleration program in Turkey and launched the Growth Circuit.

Out of hundreds of business ideas applied in April 2018, 34 qualified Start Ups were selected to the program and had the privilege of participating in an intensive training program by UC Berkeley with the mentorship of TEB Start-up Business Banking. Entrepreneurs received training on topics to help them gain global competitive advantage.

Eight entrepreneurs which have been selected to open up to the world had the opportunity to attend trainings and receive mentorship at TEB’s San Francisco Office and to listen to experiences of Turgut Boz, Deputy CEO and Senior Vice President in charge of SME Banking.

Entrepreneurs who successfully finished the program got to attend at a meeting hosted by Draper University to make presentations to introduce their businesses to more than 50 global investors.

TEB supports young entrepreneurs at every platform.

Under Let’s up program designed and implemented by TEB in cooperation with the US Embassy in Ankara, in order to search out for young entrepreneurs, trainings are provided at Turkey’s major universities and awareness is raised about entrepreneurship, new economy, information society and developing entrepreneurial ecosystem.

Within the scope of Let's up program, a total of 250 students from 7 universities presented their business ideas before a jury during the Demo Day event, after successful completion of various education and mentorship phases.

At Demo Day events organized in April and May of 2018, a total of 14 students, 2 students from each university, have been selected to go to Silicon Valley in August 2018 to acquire an entrepreneurial vision and familiarize themselves with the start-up ecosystem. Students had the opportunity to meet investor consultants, successful Turkish entrepreneurs and executives of tech giants at Silicon Valley.

TEB supported entrepreneurs at METU New Ideas New Businesses and ITU BigBang programs.

TEB initiated a program called New Ideas New Businesses (YFYİ) at METU in order to discover Turkey’s young entrepreneurs.

Thousands of applications were received, evaluated and 50 entrepreneurs with innovative business ideas were elected. TEB Start-up Business Banking assumed an active role throughout the process starting with the trainings until the Demo Day held in Ankara in October. With its participation in this program TEB Start-up Banking proved that it is a significant player in bringing qualified entrepreneurs into the ecosystem.

The winner of the great prize of TL 100.000 at YFYİ Demo Dayhas been an entrepreneur of TİM-TEB Start-up House while TEB Special Award went to a start-up who produces light and ecological composites for the transportation industry.

TEB Start-up Business Banking has been the highlight of ITU BIGBANG in November 2018, which is the most important event in Turkey hosting entrepreneurs and investors. The second prize of the event, in which a total source of TL 21 million was allocated, was given to TİM-TEB Start-up House entrepreneur while the two other entrepreneurs from TİM TEB Start Up House who make their presentations at the final received their awards and started working towards growing their businesses and moving up at competition.

Entrepreneurs supported by TEB Start-up Business Banking attended Slush for the 3rd time.

TEB Start-up Business Banking provided opportunity for entrepreneurs to attend SLUSH for the third time, one of the world’s biggest entrepreneurship and innovation events which is organized in Helsinki, Finland for eight years. Through this event, start-ups had a chance to meet with investors and companies which they can potentially collaborate with to grow their businesses globally.

Turkey’s best start-ups have been awarded.

TEB Start-up Business Banking, in cooperation with TİM, organized Entrepreneurs of Turkey Award Ceremony with the objective of bringing in high quality and innovative business ideas into Turkish entrepreneurial ecosystem. The most successful entrepreneurs of Turkey were awarded at the event which took place at Çırağan Palace in October with the attendance of Minister of Commerce Ruhsar Pekcan. Special awards for Turkey’s inspirational entrepreneurs were given to journalist Ayşe Arman and the Chairman of Turkey Game Developers Association Ali Erkin.

The first Start-up House in automotive industry

TİM-TEB Start-up House will establish in Tuzla Organized Industrial Zone in cooperation with Automotive Supply Experts Organized Industrial Zone (TOSB), Uludağ Exporters Association (UİB) and Automotive Suppliers Association of Turkey (TAYSAD) continue to provide support to Start Ups developing technology in automotive sector with innovative business models.

Facilitating an environment where automotive industry and entrepreneurs work closely and collaborate, Start-up House will operate as one of the most significant acceleration centers for tech start-ups.

Providing entrepreneurs opportunity for quick access to information, the Start-up House reinforces the connection between tech start-ups and automotive industry and took its place in the entrepreneurial ecosystem as a center for service procurement and investor opportunity discussions.

WOMEN BANKING

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.

TEB supports women with high economic potential.

In 2018, TEB continued its activities targeted to cater women business owners’.

In this context, the Bank is focused on providing support for financial and non-financial needs of women business owners for sustainable economic growth and aims to reveal the hidden potential of women bosses in keeping with its vision of being the “women’s consultant bank” and “the bank women want to work with the most”.

TEB eases access to international funding facilities.

The common problem of women bosses is accessing financial resources, especially in finding collateral and obtaining loans which makes them to give up at the early stage of setting up their businesses.

Solving these problems is highly important for preparing the stage for women where they can take part in the economy not only as consumers also as producers.

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 and brings women bosses together with the inspiring women of the business world.

In 2018, 6 events were organized in 6 cities which aimed to contact women in various Anatolian cities. These events were conducted in collaboration with local non-governmental organizations and TOBB (The Union of Chambers and Commodity Exchanges of Turkey) Women Entrepreneurs Board.

Approximately 3.500 women were reached through 30 Women Academies organized in 24 cities.

In keeping with the aim of presenting information to women bosses through different modes of communication, @teblekadin (women with TEB) Facebook page and TEB SME TV are actively utilized.

In the TEB SME TV Women Bosses Screen 340 videos were uploaded as of 2018 year end and in these videos a wide range of content varying from finance management to developing leadership skills along with inspiring success stories were featured.

At the Women Bosses Chanel, we mention 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 Women Bosses Channel view average was 4 minutes which made it one of the most popular video channels on internet. 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 ways to increase operational profitability to stories of success and inspiration.

By the end of 2018, the channel reached approximately 800.000 viewings.

The Bank that meets women bosses’ coaching and mentoring needs.

Worldwide research concluded that women display an increase in their self-confidence, awareness and use of skills when they receive mentoring.

Accordingly, TEB initiated Women Banking support programs in order to fulfill one of the most important needs of women bosses which is coaching and mentoring.

By this vision TEB is the pioneer bank that has started a program called by TEB Star Cluster project, with this project, TEB branch managers selected to extend support to women bosses were trained as “Enterprise Coaches” with a special curriculum. The project was intended to provide coaching to women bosses 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.

Branch managers who were selected for the program had different trainings for being a mentor for women bosses. The project was first launched in İstanbul in 2017 and expanded to Anatolia in its second phase in 2018. Star Clusters 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.

Accessing new markets is one of the key problems faced by women bosses.

Research shows that women bosses have a harder time compared to men dealing with sociocultural norms and creating means to access new markets. This difficulty is costing women bosses a lot of lost opportunities.

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 and conducts communication activities.

On a research conducted at 8 March 2018 on major obstacles for women in realizing their dreams, it was concluded that “Elalem Ne Der”(No matter what they say) hashtag was one of the most popular topics on twitter indicating the most significant obstacle facing women.

“Elalem Ne Der” video of TEB Women Banking aired on TV and social media between 27 February and 8 March. The film was about women’s need for chasing their dreams and goals independent of what other people say or think about them and giving a message of TEB’s support.

This strong message was well received and reached a level of more than 33 million access on online + offline channels and over 14 million viewings.

TEB participated in the “Power of Women Conference” as sponsor which was organized by Hürriyet newspaper. In the conference, TEB’s support for women to get them stronger in economy was discussed.

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 700 women from Turkey in 2018. Within the scope of the event, the inspiring stories, problems and points were shared made by those women who have an idea, a project or a standing and interviews by TEB SME TV were broadcasted live on Facebook so the women who have potential to be women boss had chance to be heard by the masses. During the event day, the live broadcast through Facebook reached an audience of 100.000.

TEB was the “training sponsor” of annual conference of WeConnect International. While delivering “Leadership and management” trainings to women entrepreneurs, opportunities were also provided for collaboration with each other.

TEB Women Banking consolidated its robust standing in international arena in 2018.

While providing the necessary support for women in all segments, from entrepreneurs to women bosses and from micro businesses to SMEs to help them overcome some of the obstacles they face in business life, TEB Women Banking draws attention in taking distinctive steps for encouraging and strengthening women as well.

At Stevie Awards For Women in Business event, TEB received two gold prizes in “Communications or Public Relations Campaign of the Year/ Communications Research” and “Social Media Focused Communications or Public Relations Campaign of the Year” categories and one silver prize in “Achievement in Women-related Corporate Social Responsibility” category.

GOLD BANKING

Industry leader in gold credits

Steadily increasing the value that it generates for customers all over the country through its expertise, accessibility and efficiency and contributing to the industry 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, has been one of the most important players in the sector at the end of 2018 as in the prior years. According to BRSA’s October data, the Bank maintained its leadership position in the sector with a market share of 35%.

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, Type B Gold Fund and the New Golden Age for individual and corporate customers wishing to make savings.

Besides its market leadership position, TEB maintains its close relationship with the jewelry industry by participating in the most critical gatherings of the sector as the main sponsor. In 2018, TEB continued its traditional support for the “Istanbul Jewelery Show” which is the world’s 5th biggest fair on jewelry. Jewelry Show 2018 hosted over 1.000 domestic and foreign jewelers from East Europe to Russia, from Middle East to North Africa and Turkic Republics of Central Asia.

In 2018, the trade fairs have been instrumental in bringing the Bank together with market professional visitors. Gold Meetings were organized in Antalya, Sivas and Diyarbakır with the participation of 255 jeweler customers and the Bank had the opportunity to interact face-to-face with customers.

LOCAL GOVERNMENT BANKING

TEB works with 560 municipalities and their agencies.

TEB Public Sector Banking continued to be one of the leading players in this business line in 2018 by developing specialized banking products and services that address the unique needs of local governments.

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 broadcasts special news programs about current problems of local governments on TEB SME TV and support operations of associations and institutions to help local governments’ access financial resources more easily.

THE RETAIL AND PRIVATE BANKING GROUP

TEB Retail Banking has continued to expand its customer base by offering customer oriented, innovative products and services in line with its vision of being a ‘Good Bank’.

The Bank continued its activities in line with its digital transformation strategies to improve customer experience and focused on developing service channels and service models through the implemented projects.

TEB Retail Banking defined its priorities for 2018 as Digital transformation applications, personal loans, marifetli, new customer acquisition, customer experience and increasing the efficiency of the service models with automation and optimization.

With the vision and goal of being “The Most Recommended Bank” TEB continuously measures the customer experience and conducts its activities to improve customer experience with design oriented thought principles.

Customer satisfaction more than doubled

With NPS (Net Promoter Score) TEB measures the experience of 185.000 customers annually asking about their experience and recording their comments on whether they would recommend TEB or not after the execution of their transactions. With NPS, business units and related teams regularly analyze the “voice of customers” to identify the problem areas in customer experience and to make improvements where needed.

Improvements developed based on the feedback received from TEB customers show that customer satisfaction more than doubled since 2013. The increasing trend in customer satisfaction based on transaction based independent measurements continued in 2018.

In addition to the daily NPS measurement carried out at the Bank, feedbacks are also collected at the time of the transactions with countertop tablets/kiosks installed in certain branches, and improvement areas for the specific branch are being reported. These practices resulted in favorable contributions to customer relations.

“Customer Journey Maps” are used to evaluate how different products and processes are experienced by the customers and the outcomes of the project are translated into actions in marketing, communication, systems, processes, products etc.

In addition to improving the existing experience journeys, “redesign projects” continued to be carried out in 2018 in the form of a joint creation process incorporating all teams employing the “Design Thinking” method.

Projects were conducted with BNP Paribas International Retail Banking business line. The impact of these projects on customer experience started to be observed in 2018.

The fourth 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 270 people from 107 institutions. Participants had the chance to hear about the methods and best practices employed by companies from ten different industries.

The activities of “Customer Experience Council” continue. The platform aimed to identify priorities in customer experience, to expand Customer Experience culture at all levels and to adopt the necessary decisions based on joint working culture.

“My Customer Experience” portal, whereby TEB employees are able to evaluate and interpret the Bank’s products and services from the viewpoint of customers, is being actively used and its outputs are being monitored.

RETAIL AND AFFLUENT (YILDIZ) BANKING

With its innovative retail banking approach, TEB aims to reach more customers through more channels. In doing so, rather than creating physical connection with customers, it facilitates convenient, fast and secure access to all banking transactions through digital channels.

Within the scope of this goal, all TEB Retail Banking products and services are made available and visible to all customer segments with access to banking services in Turkey throughout the year with an effective communication approach. A problem-solving banking approach has been demonstrated offering same high quality service through all channels.

In accordance with this goal, comprehensive banking solutions for different areas in life are being supported with innovative products. With TEB Fintech Future Four, a first of its kind in Turkey, TEB created a joint working platform to help fintechs offer their products to end-users and allowed fintechs to use this platform throughout the year. As a pioneer in Turkish banking industry, TEB recognizes the importance of its contributions by offering their innovative products and services.

Personal loans increased by 30%, share of non-branch channels grew significantly by 50%.

With the investments made on technology and infrastructure, TEB made it possible to receive credit applications through 11 channels and allocate funding through 7 channels. Ongoing customer focused design works are being evaluated and current processes are simplified and improved.

The objective is to make personal loans available whenever needed regardless of place and time on a 7/24 basis. Credit documents are obtained in digital format, not only at the distant channels but also at the branches within the concept of paperless banking resulting in improvement of customer experience.

Cooperation with PTT which started in previous years grew stronger. New cooperations have been set up under the lending at the point of sale infrastructure. Through these two business models, along with traditional channels, TEB increased its new customer gain ratio by 20% compared with prior year. “Digital credit” service that will become effective in 2019, will give e-commerce business owners with high transaction amounts an opportunity to offer alternative payment options aside from credit card.

Last year, TEB Responsible Banking Loan, a consumer loan with lower limits, was introduced in order to bring customers, who were somewhat distant from the financial system due to difficulties they face in repayment, back to the system. In 2018, the Bank took a step further with this responsibility and collaborated with KKB (Credit Bureau of Turkey) to offer a service which marked a first in banking sector. Within the frame of this service, TEB offers its credit customers Findeks Gold Advisory (KKB product) package with the objective of increasing their financial awareness and be on their side through their credit journey. Additionally with the same objective on mind, customers are being supported with reminders for their payment installments to help them form a habit of payment.

For customers who improved their credit scores TEB applied more convenient interest rates and ensured they have access to these rates at every channel.

With improvements in credit products and processes, along with analytical studies, the Bank executed an effective portfolio management for appropriate target audience. Limits assigned to customers which are readily available are offered to be used not only for long term consumer loans but also for overdraft accounts and as credit card limits to facilitate their daily cash needs. With this approach which puts the customer at the center, not the product, customers have the chance to use their available credit products as they suit their needs.

With all these efforts, credit customer experience have been improved and transaction-based NPS increased by 14% YoY.

In 2018, Marifetli account has been the most preferred savings account by the account holders.

“Marifetli account”, introduced by TEB to change Turkey’s savings habits, is a savings account with a daily term and provides account holders the flexibility of depositing or withdrawing cash at any time.

In 2018, Fırsat account, which was a sub product of Marifetli account for affluent and private segment customers, was combined with Marifetli account and upper limit of Marifetli account was raised to TL 750.000.

Based on BRSA data, in comparison with 6,1% increase in up-to-one month maturity savings accounts, the number of Marifetli accounts doubled in 2018. The product contributed to the growth of deposits with similar maturity in the sector in addition to while supporting TEB’s liability structure.

In 2018, commercial films of Marifetli account which highlight the importance of savings have been broadcasted on national TV channels as well as digital media, supported by posters and banners in open areas.

Marifetli account offered favorable interest rates to savings account holders and for those who would like to increase their savings with attractive campaigns throughout the year. The number of first time customers of our Bank has increased thanks to Marifetli account. Our financial relations currently continue with more than 90% of our first time customers.

Being a good alternative for foreign currency deposit savings as well as for Turkish Lira, Marifetli account allows for application of daily interest to USD, Euro and GBP accounts, thereof became a product preferred by savings account holders. TEB FX Platform which was launched in 2018 offers customers favorable foreign exchange rates for sales and purchases. Savings holders also made use of favorable interest rates available for their daily foreign currency transactions.

Global Youth Account which is a sub product of Marifetli Account offers a lower limit of 100 TL/EUR/USD/GBP to encourage youngsters’ savings. By this account, youngsters earn interest income on savings of lower amounts and gain awareness on savings at an earlier age.

TEB launched another product in 2018 called Planned Account. Contributing to the improvement of maturity structure as well as supporting savings, Planned Account allows customers to tie up their deposits for a term of one year while supporting them for their cash flows. The product offers monthly, quarterly and half year interest payment plans which are not affected by interest rate changes while giving the customers an opportunity to choose the terms when interest payments are deposited to their accounts.

In 2018, in addition to alternative products offered to Retail and Affluent Banking customers the Bank continued to differentiate its services. While increasing the services for following up developments such as market notifications, Strategy Bulletins and Customer Gatherings, TEB continued to provide services with favorable costs for FX, DCD and Eurobond transactions through new platforms on the investment side.

As the basis of growth in Retail Banking, salary accounts constituted 40% of newly acquired customers in 2018.

TEB mediates salary payments of numerous large corporate and public sector institutions with the vision of being “the most preferred bank” in salary payments.

In 2018, special packages offered to customers with salary accounts are enriched with favorable credit terms, deposit rates and discount campaigns for a range of products and services from clothing to holidays organized through cooperation with various companies.

Custom-tailored retention programs are developed for those customers whose salary agreements ended to allow them to make use of privileges TEB has to offer resulting in increased customer satisfaction.

In 2018, Product Packages program has been initiated which are customized for specific customer needs that can offer more than one product with various advantages with a complete dynamic and flexible nature. These packages are offered through branches, digital and call center channels. In the following periods, packages will be more extensively used with contents differentiated and diversified specific to customers.

Paying close attention to pension account customers in 2018, TEB offered favorable rates for credits and deposits to retirees in addition to special call center, credit card with no fees and priority services which were already available. With “suggest a retiree” campaign, advantages were offered to relatives and friends. In 2019 TEB will focus on attracting more retiree customers by offering attractive opportunities.

Products and services tailored for specific needs of different occupations

In 2018, TEB cooperated with 43 different professional organizations or chambers such as the Bar, universities, practitioners, public accountants, veterinarians, dentists and pharmacists.

A significant protocol has been signed with Turkish Pharmacists Association in 2018. In accordance with the protocol, TEB offers a monthly contribution payment of TL 170 to pharmacists’ individual pension accounts (BES) who open an account for the deposit of Social Security Institution (SGK) payments and who actively use TEB POS devices.

Individual and commercial credits up to a limit of TL 60 thousand with Turkish Pharmacists Association’s guarantee, free of charge money transfer and EFT via internet banking, account maintenance fee exemption for commercial accounts and cash register fee waiver for POS devices are provided. All members of Turkish Pharmacists Association can benefit from these advantages TEB offers.

Focusing on university collaborations since 2015, TEB processed salary payments of 24 universities in 2018.

TEB provides services for accounts of management of more than 7 thousand apartment buildings and apartment complexes, thus becoming the leader of apartment complex management with its strong structural support and digital solutions.

Increasing similar cooperations and salary payments TEB aims to be the major bank of customers from various professional groups in 2019.

With new customer win projects in 2018, TEB Affluent (Yıldız) Banking increased the number of affluent customers, growing by 61% in net revenues and 50% in total assets.

In 2018, TEB offered privileged services to upper-segment customers with products and services customized for their specific financial needs, priority service through all channels and solutions for their social lives via customer representatives who have been specifically assigned to them.

Through the exclusive TEB Affluent Line (customer interaction center), the Bank’s affluent customers enjoy the privilege to easily and quickly perform their transactions, and to withdraw cash with their TEB Bank Cards from BNP Paribas or other in-network banks’ ATMs abroad without a charge.

Customers’ lifestyles and needs are analyzed and advantageous services were offered to TEB Affluent Priority Card holders, such as 10% restaurant bonus, 50% discount at airport parking, 50% discount at movies and theaters on weekends, free of charge VIP transfers, mileage program, free dry cleaning and discounted Motovale services. With Affluent Privilege application, customers had the opportunity to get special discounts on a wide range of areas, such as distinguished hotels, restaurants, events, concerts or personal hobbies in Turkey or abroad.

Continuous and intense contact was established with customers via social network accounts, TEB Yıldız Instagram and TEB Yıldız Twitter, about banking products and services as well as new developments in the world.

Adopting a customer focused approach in 2018, TEB Affluent Banking made use of various organizations to understand customers’ needs and expectations and increase satisfaction, such as one on one meetings, surveys, breakfast meetings and other events. Affluent Customer Meetings with Işık Ökte were organized to share market information.

In 2019, TEB Affluent Banking started to work on renewing its value proposition presented to Affluent customers.

TEB aims to be the pioneer bank in this segment by providing investment services customized based on affluent customers’ risk preferences, robot consultant services, new loyalty program where they can get privileged services through digital channels as well.

Effective service approach in bancassurance

With the frame of ongoing powerful cooperation with BNP Paribas Cardif A.Ş. and Zurich Sigorta in bancassurance services, TEB continues to offer insurance products in a wide spectrum and with an effective service approach.

Becoming an effective distribution channel in bancassurance, specifically in life insurance, banks continue to develop in other segments as well.

Based on December 2018 figures of the sector, 77,6% of life insurance premium and 14,4% of non-life premium are produced via banks. As of 2018 year end, TEB’s bancassurance premium production was TL 207,4 million in life and TL 204 million in non-life insurance contributing to Bank’s commission income.

In 2018, TEB bancassurance continued providing services through its branches and alternative distribution channels to meet their customers’ needs on their insurance and individual pension accounts. While allowing for policy purchasing and monitoring via customer interaction center and internet banking, studies are carried out on diversifying the range of products offered through these channels and on digital solutions. TEB presented its microbusiness customers an Automatic Participation to BES (individual pension system) product called Super Microbusiness Package.

In addition to insurance products, communication and marketing campaigns were carried out to inform existing and potential customers of Private Pension System regulations and government contribution 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. In 2019, TEB will offer its customers Return of Premium Life Insurance and Supplementary Health Insurance.

Free-of-charge trainings for all at TEB Family Academy

TEB Family Academy established in 2012 in order to enhance financial literacy and raise an awareness of savings in society offers all individuals free basic financial literacy to all TEB customers and non TEB customers.

Trainings focusing on saving, budgeting, debt management and correct banking product usage intend to contribute to famlies’ finances and consequently to the growth of the national economy.

In the last few years, 11 million elementary school students have been informed about financial literacy through arts and music courses in the curriculum within the frame of the “Social and Financial Education through Art” project implemented in collaboration with the Ministry of National Education and UNICEF.

Additionally, with protocols signed with General Directorates of Lifelong Education and Vocational and Technical Education which are affiliations of Ministry of National Education, 7,5 million trainees and students had a chance to receive financial literacy trainings.

Aiming for a young generation who has a command of financial technology and who saves

Taking its pioneering position in financial literacy a step further, TEB started Digital Financial Literacy Program for university students based on the necessities of the new era. Within the frame of the program the Bank met with 5.000 students at 20 universities on trending subjects such as Blockchain, Fintech, coding and digital transformation.

The objectives of the program are, raising individuals who have a command of financial technologies, who save, manage their money properly, know how to evaluate financial advantages and technologies and who are economically strong, hence contributing to digital transformation.

PRIVATE BANKING

Providing private banking services since 1989, TEB is the first bank implementing private banking and wealth management services in real terms. TEB Private Banking has a pioneering approach that seeks to offer its customers 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 all around 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.

With distinctive practices and services in its sector, TEB Private Banking received the “Most Innovative Private Banking” award at the Finance Awards of International Finance Magazine which is a finance and business analysis magazine published in UK rewarding the most successful organizations in their areas every year.

Outstanding practices and services of TEB Private Banking in 2018 are presented below:

CEPTETEB Private

CEPTETEB application which enables customers to perform their banking transactions easily from wherever they want has been differentiated exclusively for Private Banking customers in 2018 based on Private Banking customers’ needs. With CEPTETEB Private version our customers can access their daily and monthly investment strategy reports, follow up credit card campaigns and call TEB Private Line with a single click. Different functions and additional features are planned in 2019 to make our customers’ lives easier.

Mobile Approval

TEB Private Mobile Approval Project was initiated in 2018 to digitalize bank order delivery process. With this project, processes for written bank orders and obtaining wet signature are digitalized enabling TEB to forward the orders to customers and receiving their approvals via CEPTETEB Mobile Banking and Internet Banking. With this project, operational workload, delays, courier/taxi/ telephone costs and risk of not being able to obtain the wet signature approvals are minimized. The process got more reliable with the digital solution leading to an increase in customer satisfaction.

Investments that Make a Difference

Supporting the entrepreneurship ecosystem with numerous private projects such as TEB Private Angel Investment Platform, TEB Private Investor Club and TEB Fintech Future Four, TEB Private Banking initiated a new project on social entrepreneurship concept which is gaining popularity in the world, as well as in Turkey. TEB has signed a collaboration agreement with Ashoka, the world’s first and leading social entrepreneurship network, and organized events called “Investments that Make a Difference” to bring together social entrepreneurs with potential investors and support sustainable business models. Within the context of this collaboration, “Social Finance Meetings” were organized in the previous years with the objective of creating awareness on social finance concept. In 2018, the focus point was ‘social entrepreneurship’. The meeting organized within this frame highlighted the fact that in today’s world the meaning of investment go beyond money and represent effective steps to be taken towards the future. Initiatives such as good4trust.org which started to expand prosumption economy, E-Bursum which makes access to scholarships easier and fairer for students, LaborVoices who works for the transparency of supply chains made their presentations during the meeting. The objective was to provide support for these entrepreneurs in terms of social financing, resources and network.

TEB Private Meetings

CXO Club- the Leaders of the Future Club meeting which started in 2017 as an initiative of TEB Private Angel Investor Platform continued in 2018. Digital trends all over the world and principles of angel investment together with current entrepreneurship stories were discussed at these meetings.

At CXO Club Meetings, TEB’s knowhow was shared with customers to give them an opportunity to turn into investment either individually or as a corporate. The objective of the CXO Club Meetings is to strengthen the corporate collaborations to achieve a healthy structured entrepreneurial ecosystem through closed meetings where new business models, global trends, concepts and threats for large corporations are discussed.

Within the frame of TEB Private Meetings, “TEB Private Economy Talks” were organized in various cities which hosted Işık Ökte, TEB Investments/BNP Paribas Strategist, and latest developments in markets were shared with customers.

Sponsorships

TEB Private Banking sponsored WBAF 2018 World Conference in Istanbul which is organized by World Business Angels Investment Forum, the largest organization in angel investment in the world. TEB Private Banking met with more than 1.000 start-up friends from 80 countries through its Angel Investment Platform initiative.

Sponsorships for sports organizations continued in 2018. TEB Private Banking was the sponsor of TAYK sailing race in July and TEB Private Banking Golf Tournament in Bodrum in September. Aside from sports, TEB Private Banking continued its endorsement for art and sponsored the BASE event which supports young artists from faculties of fine arts at various branches.

Investment Consultancy Services

Through the Investment Consultancy model developed under the context of TEB Investments at the beginning of 2017, 5 specialty branches were launched in 4 cities and Investment Consultancy services were provided to TEB Private Banking customers by a total of 15 investment consultants. In this context, TEB Group investment strategy and investment products and suggestions in line with this strategy were presented to customers who sign an Investment Consultancy agreement. In addition to those services, monthly teleconferences were held with the participation of Florent Brones, BNP Paribas Chief Investment Consultant, where latest developments in global markets were shared with customers.

DIGITAL BANKING

TEB continued its investments on mobile technologies in 2018, with CEPTETEB Mobile Application which was renewed in 2017 enabling customers to tailor its design and offering a wide range of transactions. With new versions, CEPTETEB now provides a distinctive banking experience to TEB Private Banking customers as well. Using the mobile application, TEB Private Banking customers can follow up market developments via daily and monthly reports and benefit from special campaigns.

In 2018, TEB launched the new TEB FX platform under its Digital Banking Platform CEPTETEB to enable individual and corporate customers to make their foreign exchange transactions instantly and quickly.

TEB FX platform users can identify the currency pairs they want to track, perform analyses of developments on these exchange rates via advanced graphics. Detailed market analyses and market news can be followed up on TEB FX using filters for your specific interest areas. In addition to those features, transactions made through TEB FX can be reviewed on transaction history page and average costs of previous transactions can be tracked with indicative prices. At TEB FX platform, exchange rates are locked for transactions in the pre-selected currency pairs for 5 seconds to allow customers realize their sales and purchases at favorable rates.

Additionally, with POS transaction menu installed in CEPTETEB Corporate Mobile Branch, customers can now view their POS and terminal transactions and unlock blocked transactions.

Investing in value added technologies

Aside from providing support for customers to develop and change their technologies, TEB also focused on value added technologies for its customers. With the integration realized via its collaboration with a Fintech, TEB started sending location based campaign messages. Location information received from the application feeds TEB CRM and campaign messages are delivered to target customers.

81% of customers use digital banking channels

TEB continued its investments in digital channels and had 81% of its customers use digital channels. One out of two TEB customers uses online banking channels. Number of customers using mobile banking channels reached 1,1 million.

As of December 2018, Digital Banking Platform CEPTETEB kept its growth and reached 665 thousand customers. Credit applications through digital channels constituted 27 % of sales and deposit volume share through digital channels reached 21%.

CEPTETEB offers its customers a rewarding experience.
CEPTETEB Mobile Application received the “Best Mobile Application” award in “Banking and Finance” category at 2018 Altın Örümcek (Golden Spider) Web Awards and selected as the “Most Accessible Mobile Application” among all mobile applications.

TEB carries on its social responsibility projects.

With TEB My Tree project, the Bank prevents carbon emissions that would come out as a result of the vehicles used by customers going to the branch rather than using CEPTETEB Internet Banking Branch. When the carbon emission prevented through internet banking reaches the level that will be produced by a tree, a donation is made to TEMA Foundation for one tree sapling. So far, TEB has supported planting of 25 thousand trees on behalf of its customers.

ATM

Having one of the youngest networks of ATMs in the industry, TEB offers 7/24 services with an ATM market share of 3,4% whether the user is a customer or not. All ATMs of TEB allows for depositing cash, 87% has recycling feature (meaning cash deposited may be used for withdrawal) and 85% allows for foreign currency withdrawals. Approximately 67 million transactions are realized through 1.736 ATMs annually.

TEB’s Global ATM agreement enables the use of TEB cards for cash withdrawals at BNP Paribas ATMs in various countries as well as other banks’ ATMs free of charge. This service is being offered in 6 continents at around 50.000 ATMs.

In addition to those, new channels are being set up for customers to perform their cash or other banking transactions through new ATM sharing collaborations.

TEB ATMs will continue to provide services to customers with their new user-friendly display in 2019.

Open banking operations

TEB started 2 significant programs in 2018 for Open Banking transformation which translates into a new business model implemented all around the world, particularly in Europe. These two programs are API (Application Programming Interface) and Fintech Collaboration programs.

Under API program, banking products and services are opened up to customers’ use through different channels using APIs. Within the scope of Fintech collaboration program, various projects are being conducted. Among the projects prioritized, biometric signature project was completed. Following legal arrangements, this project will be launched as pilot at two TEB branches on 17 January 2019. This project will end paper usage in all processes requiring wet signature.

Through another Fintech Project, TEB will prepare a platform where investors will find thematic and factor based investment baskets together. This project is being carried out by the collaboration of one of the participants of Fintech Future Four, TEB Investments and TEB Portfolio. The Bank worked on robot consulting with that same business partner and the application performed successfully at the pilot test.

Another agreement was signed with another Fintech with a strong added value proposition for a platform where landlords, tenants and real estate commissioners meet. Through this platform TEB will provide various product and services, primarily credits, to its customers when needed.

Within the scope of BNPP IRB Home, studies are being carried on with an objective of using psychometric scores to allocate credit to new customers with no TEB history. The project will start with a foreign Fintech start-up that was selected in Paris.

Number of TEB Practical Branches reached 25.

Practical Branches, TEB’s new banking approach bridging digital with physical, have continued to expand across Turkey.

TEB Practical Branches are equipped with Turbo® devices developed by TEB’s information processing and operations departments and R&D engineer staff. Number of these branches have reached 25 by the end of the year; eight in Bursa, five in Denizli, eight in İstanbul and four in İzmir.

Turbo® devices at TEB Practical Branches facilitate transactions such as cash withdrawals, deposits, transfers, payments and credit card deliveries as well as cash loan applications and loan booking which require wet signatures.

TEB Customer Interaction Center kept is leading position in the sector in many areas.

TEB Customer Interaction Center handled 22 million interactions with its distinctive service models and various work experience opportunities provided to its employees. Live Chat channel started to operate in 2018 and quality assessment processes were automatized.

PAYMENT SYSTEMS

TEB continued its efforts in 2018 to facilitate payments of individual and corporate customers and develop new payment alternatives.

TEB carries on its activities to help customers perform their shopping transactions more easily, quickly and securely. While enabling a more secure environment for card payments, additional features are added to make shopping more fun. On the other hand, the target is to offer all kinds of payment alternatives to ensure businesses increase their turnover.

Changes and improvements realized in credit and bank card segments in 2018 are summarized below:

TEB-BONUS cooperation completed its 12th year.
Available to all cardholders and being among the most ambitious flight programs, the Mile Program allows customers to fly with advance miles without collecting bonus points and miles.
The use of TEB debit cards for purchases accounted for 15% of the total turnover of debit cards.
In 2018, TEB Individual Credit Cards reached the highest level for the last five years in turnover market share.
Average turnover of Commercial Credit Cards increased in 2018 by 23% YoY and market share has been realized as 4,3%
With Contactless MasterCard Public Transportation application, card holders can use their bank cards, credit cards or mobile wallets in public transportation in cities selected for this project.
TEB credit card customers were given the opportunity to make mobile payments with NFC compatible cell phones on all contactless POS devices, including public transport in certain cities. Number of contactless payments and card transaction volume has increased accordingly.
TEB cards which are in mobile wallet applications in collaboration with BKM Express and MasterPass kept offering safe alternative payment options to customers.

Member merchant sales, marketing and product development activities are expanded.

TEB keeps on increasing its POS solutions and packages offered for each segment.

Through acceptance of all popular cards via single bank and account, the Bank aimed to make the merchants’ lives easier and add value to their businesses. In 2018, along with Visa, MasterCard, Amex and Union Pay, TEB member merchants started accepting TROY cards, Turkey’s new payment system. This way, members are able to accept five card brands with one single agreement.

In the context of responding to sector-specific needs, the Bank expanded its service spheres by offering solutions and packages catering to customer needs and expectations, such as

TEB Milyem POS for jewelers, Harman Card and Harman POS for the needs for farmers, Doctor POS for doctors and Professionals Packages.

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 2018, the number of banks with joint POS deals reached seven and the number of brands & models collaborated for cash registers reached 15.

Along with POS payment services, TEB provides support to member merchants with analyses and special reports which offers added value for business specific needs and expectations. The following activities were realized to make merchants lives easier within the frame of digitalization:

POS functions were developed on CEPTETEB Mobile and studies on additional functions are ongoing
Functional studies such as accepting POS applications on tablets, DCC, fixed-price POS and second end of day were prioritized in 2018 and their contents were enriched.

As of 2018 year end;

TEB POS, providing services at nearly 123.000 points, offers member merchants shopping opportunities with installment and bonus point redemption capability with a total of 50.000 POS devices with Bonus feature.
TEB is ranked as third among the banks that do not have their own brands
With 52.000 PRDs (Payment Recorder Device), cash register POS market share went above 4%.
In 2018, the POS volume of TEB closed in on TL 28 billion, and about 25% of the total turnover was generated within the scope of the Bonus loyalty program.
With POS portfolio activities conducted at the Headquarters and additional TL 1,1 billion turnover was realized in 2018. Thus an increase of 7% in POS activity ratio has been recorded.
Fixed price POS product was appreciated by the customers in a short time within the simple banking concept. In 2018, a package of TL 100 thousand was added to TEB product portfolio which is offered to member merchants with high turnovers among SME portfolio. This product was one of a kind in the industry. TEB will also offer POS packages with Bonus installments in a very short time.
TEB aims to support payment organizations which are the new players, thus contributing to the industry. The Bank continues its virtual POS activities with a number of payment institutions. Infrastructure studies are also being carried out for sub-merchant management. Approximately 25.000 sub-distributors were identified systematically.
Sales in 7 different currencies were offered with TEB POS. Along with TL, USD, EUR, GBP; sales with Ruble (RUB), Riyal (SAR) and Japanese Yen (JPY) have also started. TEB is among the three banks that support Riyal (SAR) in the industry.
TEB POS was also active in social media. First of all, digital ads for Fixed-price POS and POS Which Comes by Itself ran on social media and digital channels, primarily on Instagram, the latter being a product which allows for active sales teams to visit customers at their work place and combines obtaining information and documentation services together.
POS agreements were signed with large corporate customers and chain stores renowned worldwide.
With its in-flight POS Project, TEB took place as one of the 3 banks in the industry who offers in-flight POS services.

Payment system collaborations increased in 2018.

The Bank’s market share in payment systems kept growing in 2018 with 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, one of them being an affiliate of Turkey’s leading telecom operator. The number of companies TEB provides services increased to 18 in 2018 from 15 in 2017.

Operations under European Union Payment Service Directive 2 (PSD2) which came into effect in January 2018 were closely monitored and steps were taken towards new collaboration in this context.

TEB has been providing services to payment institutions who handle bill payment of Turkey’s largest corporations. In 2018, Turkey’s leading electric, GMS and natural gas companies were included in TEB’s portfolio and bill payment services grew even larger.

The Bank will go into more depth in the services provided for these companies in 2019 and will work on collaborations to increase value added to the customers, primarily in automatic bill payment instructions.

In 2018, 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 improvements for bridges and highways, including Northern Marmara Highway, one of the most significant projects of 2018, have been completed timely and smoothly in 2018.

ASSET AND LIABILITY MANAGEMENT AND TREASURY GROUP

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 manage interest rate, liquidity and structural exchange rate risks with the aim of maintaining a sustainable profit for the Bank.

The 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 2018, 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 2018, despite the economic 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 within limits during 2018 which has been a year of frequent fluctuations.

Close watch of global and local markets The Group monitors 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’s balance sheet. The specialty that is required to be able to mitigate those risks is another strength of the Asset-Liability Management and Treasury Group.

The Group is in close communication with all the business lines to ensure the balance sheet is managed with the right costs and effective competition. Periodical meetings and visits are scheduled to establish an efficient relationship with the branch network.

Asset-Liability Management and Treasury Group plays an important role in modeling interest and liquidity risks accurately, measuring the realizations and the decision making processes of the Bank through reports prepared for matters under the Group’s responsibility.

Funding sources have been diversified.

In 2018, 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 Bank focused on Marifetli account and a substantial growth has been recorded in that product.

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 working on a cash flow based funding product towards securing long term funding from international markets. Particularly in the first 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 of experience with BNP Paribas for effective liquidity and risk management

Information flow between specialist teams to adapt BNP Paribas know-how in modeling analyses to the requirements of Turkey by the TEB ALMT modeling team continued efficiently in 2018.

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. Specific activities were performed for intraday liquidity management and experiences were shared to effectively manage intraday liquidity under stressful situations. Efforts continue to adapt best practices within the Group to TEB.

TEB funding transfer cost (FTP) infrastructure has been updated.

FTP infrastructure is updated and it is turned into a complete automatic software responding to increasing needs of ever growing TEB. The changes were made to serve the following objectives:

Effective and trackable management of credit and deposit costs
More sensitivity in intrabank profitability and interest risk transfers
Simplifying, accelerating and automatization of operational processes.

CORPORATE INVESTMENT BANKING GROUP

Operating since 2011, TEB Corporate Investment Banking Group provides Turkish companies targeting strategic opportunities at home or abroad with consultancy support that will cater to such pursuits, and supports this service with loans and capital market transactions.

The main purpose of Corporate Investment Banking Group is to deliver customized 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 2018, the Group carried on with its customer-oriented activities in Financial Markets, Large Corporate Groups, Finance of Large Corporate Groups and Corporate Finance.

In 2018, 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 offered 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 provided consultancy services in big infrastructure projects in 2018, helped private capital funds in Turkey with their business ideas thanks to the rich client portfolio of TEB and intermediated strategic investments.

TEB built a structure that meets all the requirements of Investment Banking.

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

TEB Securities Services provides post-trade services for securities of its clients with its team of specialists at the TEB Head Office.

In cooperation with BNP Paribas Securities Services, which is Europe’s largest custodian bank, the department creates solutions for post-trade needs pertaining to capital market instruments, which may arise subsequent to the investment decisions of financial institutions, institutional investors and issuers, with an innovative and meticulous approach.

TEB Securities Services who has been providing local custody and settlement services was originally inaugurated by BNP Paribas in Turkey back in the 1990s, started to operate within TEB since 2007 and completed its 11th year in the industry.

As part of BNP Paribas Corporate Investment Banking (CIB), TEB Securities Services serves with a consultancy approach in terms of market operations and new products.

TEB Securities Services provides the following services:

Settlement and custody services for cash equities, government bonds and bills and other capital market instruments
Collateral and cash management services for derivatives
Securities borrowing/ lending transactions
Outsourcing services for brokers
Escrow and collateral management services
Debt instrument, certificate and warrant issue-related operations and payment services
Account operating services for issuers’ central registry agency accounts
Individual custody, collective custody and funding services for portfolio management companies.

TEB Securities Services sustained its successful performance in 2018.

Sustaining its successful performance as in the previous years, Securities Services Department won new clients and managed the transactions of existing clients successfully in 2018.

The department started to offer individual and collective portfolio custody services to other non-group portfolio management firms as well.

TEB Securities Services ranked number one in the following surveys conducted by leading institutions and based on comments and ratings of clients:

Global Custodian-Agency Banks in Emerging Markets
Global Finance Magazine-Country Award, Annual Survey for World’s Best Securities Services Providers.

TEB is the choice of clients that seek much more than a custodian bank.

Having the global perspective with a pioneering and client-focused approach TEB 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 bodies, namely Capital Markets Board of Turkey (CMB), Takas Istanbul (Istanbul Clearing, Settlement and Custody Bank Inc.), Borsa Istanbul (BIST) and Merkezi Kayıt Istanbul (Central Securities Depository of Turkey) 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.

Making use of these developments as an opportunity to cooperate with clients and developing joint projects with them, 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 developing capital markets and being the pioneer organization in the markets, collaborations continue with Turkish Capital Markets Association (TSPB), Merkezi Kayıt Istanbul (MKK) and Takas Istanbul.

Significant developments occurred in Turkey’s capital markets in 2018.

Technological infrastructural transformation which has been going on with the strategic collaboration of Borsa Istanbul and Nasdaq OMX was completed in July 2018 with the addition of Debt Instruments Market (BAP) and Precious Metals Market. In this context, Takasbank has become the central counterparty (CCP) at Debt Securities Market (BAP) as of July 2018. Additionally, as of October CCP services began at newly established Borsa Istanbul Swap Market. The common objective of all these developments and innovations is to increase confidence in Turkish capital markets and help markets grow and develop transparently and in a controlled manner.

New product developments and collaboration efforts continued in 2018.

As the CCP services started to be provided in securities markets, TEB Securities Services conducted comprehensive evaluations with Takas İstanbul and the clients on the impacts of these changes on markets and services provided. Following these developments, TEB started preparations towards being a General Clearing Member in the BIST Equity Market with the objective of supporting the development and growth of the market by being the pioneeri bank to provide this new service.

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.

Ongoing collaborations with professional organization within the market continued in 2018. TEB Securities Services took part in the Content Committee of the Capital Markets Congress 2018. TEB participated the Congress at the highest level as the Gold Sponsor with its innovative mission in supporting the markets.

Having strong relations with TSPB, TEB sponsored one of the most significant panels at the Congress with the title “Future of Capital Market” with the moderation of TEB CEO, Ümit Leblebici. Participants of the panel were Chairman of CMB, Turkey Wealth Fund CEO, Chairman of the Investment Office of Turkish Republic Presidency and Borsa Istanbul CEO. Another panel titled “We Should Create Corporate Investors for our Future” was co-sponsored and organized by TEB Securities Services in cooperation with TEB Portfolio Management.

The most significant services introduced in 2018 by TEB Securities Services were individual custody, collective custody and fund operations services for portfolio management companies. The department utilized the opportunity to offer this service to non-group portfolio management companies, besides group companies. Activities to adapt the service in line with the needs of portfolio management companies and CML regulations were completed and service has been rendered to non-group portfolio management companies.

NEW PRODUCTS AND SERVICES

New retail banking products

In 2018, TEB introduced TEB FX platform under its Digital Banking Platform CEPTETEB which allows retail and corporate customers to perform their foreign exchange transactions instantly and quickly.

Through TEB FX platform, users can easily follow graphics, analyses and market news filtering by currencies. Platform also facilitates viewing their transaction histories and average costs of users. TEB FX platform locks the prices for 5 seconds allowing customers to perform their transactions at favorable rates.

With the new versions of CEPTETEB, TEB Private Banking customers can follow daily and monthly reports on market developments and keep track of special campaigns over the mobile application. In addition to that, TEB Private Mobile Approval project which digitalized the bank order delivery process was launched. Thanks to this project, orders can be delivered and approval received through CEPTETEB Mobile Banking and Internet Banking.

TEB Retail Banking launched Planned Account in 2018. Planned Account is a one year time deposit account which offers monthly, quarterly and half year interest payments based on customers’ preferences. It allows for savings to benefit from long term interest rates while giving the opportunity to manage the cash flow.

New cash management products.

TEB updated its systems to comply with TEB SWIFT gpi application in 2018. SWIFT developed this solution to improve cross-border payments. TEB customers can now track their cross-border payments transparently from start to finish along the payment chain, including the stages of the payment and fees charged.

In 2018, TEB launched SGK payment service via SMS, online and offline inquiry service, customs ID automatic message service, e-bill of lading service, DBS Distributor invoice online message service, online HGS label message service and online EFT Payment API service.

TEB’s support for the real sector- MİB cooperation

In order to contribute to sustainable development and foreign trade targets of SMEs, SME Banking cooperated with Association of Turkish Machine Manufacturers (MİB). In accordance with the terms of the agreement, joint projects will be developed, implemented and mentorship programs will be adapted in technology, entrepreneurship and manufacturing fields, in addition to providing financial products and services tailored to specific needs of MİB members.

As the consultant bank of farmers, TEB supports producers with its new technological service.

TEB Agricultural Banking launched another technological solution to help farmers achieve more efficiency in their production. With My Weather service, TEB sends farmers customized information based on field location and crops being produced as well as detailed three-day meteorological forecasts of humidity, precipitation and wind data, warnings and suggestions regarding the timing of fertilization and pest control.

TEB helps women bosses achieve their targets for future with Star Clusters.

TEB Women Banking carried the TEB Star Clusters project to Anatolia to respond to mentoring and coaching needs of women bosses. The Bank carried on its activities to help women bosses discover their potentials all around Turkey. With TEB Star Clusters project, selected TEB branch managers are trained to have Business Coaching formation to support women bosses.

TEB prepares women engineers for being entrepreneurs.

To bring more value added and innovative entrepreneurs into the entrepreneurial ecosystem, TEB Women Banking started delivering trainings to women engineers on various areas from building their business models to commercialization and from dynamics of entrepreneurial ecosystem to opening up to the world.

First training was delivered in İzmir and the project will continue in 2019 at different cities.

With Global up program, TEB supports technology firms’ expansion abroad.

Technology firms who have potential to export and who want to reach global markets are being accelerated with TEB Global up program.

In this program, entrepreneurs who achieved a certain scale of structure with their innovative business models and value added products are provided with trainings and consultancy on topics such as developing global expansion strategies together with cross-border market research, operational process management and pricing.

In 2018, 17 entrepreneurs were selected to the program and studies were performed for their export targets for 2019.

TEB supports technological business ideas and innovative business models with its collaboration with METU and ITU.

TEB Start-up Banking has been among the most significant business partners at METU YFYI and ITU BigBang programs where innovative business ideas and models are evaluated and awarded.

Throughout the process of evaluating and selecting the applicants until the final stage, TEB provided trainings and mentorship to develop their ideas. At the final stage, 40 entrepreneurs were evaluated, 20 from METU YFYİ and 20 from ITU BigBang. After the selection, TEB Start-up Banking awarded two most innovative technology ideas, one from each university.

TEB and METU collaborated for another project, TİM-TEB Start-up House Growth Circuit Acceleration Program. Selected entrepreneurs in this program received early stage funding (seed funding) from Growth Circuit (METU affiliate) and trainings from UC Berkeley mentors.

After the acceleration stage in Turkey, 15 entrepreneurs accepted to the program participated in two different programs in Silicon Valley and received guidance from important mentors. Upon the completion of the trainings, entrepreneurs had the opportunity to make presentations to numerous investors at the Demo Day at Draper University, in particular to Tim Draper.

Products planned to be launched in 2019

Digital banking platform for SME customers

The digital platform designed for SMEs’ financial needs will make TEB customers’ lives easier while helping them through their own digitalization transformation.

The platform will consist of mobile and web applications and it will not only accelerate customers’ banking transactions but also have functions which make it easier for them to track their financial status.

Expert branch

With Expert Branch that is established by analyzing the needs of SMEs, TEB aims at developing experts in Foreign Trade, Manufacturing and Technology sectors and bringing together value added people raised for the industry with the digital world. The Bank’s objective with this service model is to make a difference in the industry.