Garanti BBVA is leading the charge for digital banking in Turkey

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Job interview with: Mahmut Akten, Government Vice President of Retail Banking, Garanti BBVA

July 28, 2021

Garanti BBVA is an built-in economical solutions group functioning in just about every section of the banking sector, which includes corporate, industrial, SME, payment programs, retail, private and financial commitment banking. It also has local subsidiaries in pension and everyday living insurance policy, leasing, factoring, brokerage and asset administration, and intercontinental subsidiaries in Cyprus, Malta, Netherlands, Germany, Switzerland and Romania.

As of March 31, 2021, Garanti BBVA supplies a extensive variety of financial services to over 19 million buyers. It has 18,615 staff members via a network of 885 domestic branches, seven international branches in Cyprus, a person in Malta, and two intercontinental agent workplaces in Düsseldorf and Shanghai. It provides a seamless omnichannel practical experience with 5,296 ATMs, an award-successful phone centre, online, cell and social banking platforms, all created on a reducing-edge technological infrastructure. Running the largest electronic buyer foundation between the non-public banks in Turkey, Garanti BBVA Digital Banking allows 9.8 million digitally lively prospects to execute any banking transaction at any time, anyplace.

Garanti BBVA’s small business design is driven by strategic priorities centered on accountable and sustainable development, buyer experience, staff happiness, digitalisation, optimal cash utilisation and effectiveness. Customized-customized solutions and a large selection of solutions have performed a vital job in its large good results. Entire world Finance spoke with Mahmut Akten, Govt Vice President of Retail Banking at Garanti BBVA, about its continuing quest to enhance for the two its buyers and workers.

 

What work have you carried out on your enterprise company profile?
At Garanti BBVA, we often emphasis on our customers and function in order to meet their desires and expectations at the optimum amount, and present them with a flawless practical experience, with our experienced personnel additionally a wholesome and potent technological infrastructure.

In banking that has advanced into electronic we undertake an approach that adds value to our consumers with our items and expert services, and that ensures our electronic channels are human-oriented and consumer-friendly. In this context, the concept of monetary wellness is a new technique for us. We believe that a wholesome daily life features getting economically healthy. Our expert personnel and potent technological infrastructure assistance us to satisfy our customers’ desires and anticipations at the highest level.

We want to build sustainable benefit for society and the nationwide overall economy. Financial well being is amongst our most important strategic priorities – we want to be ‘the lender that constantly cares about its prospects and presents them economic advice.’ We outline the concept of ‘boşluk gerekiyor fiscal health’ as currently being ready to handle the regular monthly budget, be organized for unexpected expenditures, make the a lot more pleasing buys of lifetime with peace of head, and take edge of possibilities for the long term of your desires.

 

Tell us about your corporation values and how you sustain them during the small business
Our values lie at the heart of our employee-centric solution. Our ‘customer will come first’ price identifies empathising with the customer as the top rated priority for staff members. It also describes the have to have to disclose all needed details when responding to purchaser requires – in just the body of liable business enterprise practice – and phone calls for a consequence-oriented solution.

Innovation is embedded in our culture. Staff encourage every other and their groups. When serving consumers, employees go earlier mentioned and further than conference their desires and present solutions that amaze our shoppers – ‘we feel massive.’ Our do the job culture encompasses employee collaboration, the great importance of motivation to get the job done, and the perception of responsibility that demands to exist in order for us to accomplish a frequent objective mainly because our mantra is that ‘we are just one group.’

 

How are you planning to get to more buyers?
We are concentrated on supplying a greater knowledge on our digital channels and have a demanding omni-channel strategy: to reach people at the suitable time with the appropriate information. We emphasise building an unrivalled person encounter via thorough assessment of facts and standard usability surveys. We are acutely aware that ‘people’ must be at the centre of every assistance or style.

We also hear to the needs of our customers applying ‘Garanti BBVA’ya Sor’ (Request Garanti BBVA) – the initial 24/7 social media shopper satisfaction channel in the Turkish banking sector. Even though about 9.8 million of our customers use mobile banking, seven million are mobile-only. Roughly 580 million transactions are carried out as a result of online and mobile banking channels yearly.

In truth, 97 p.c of all non-dollars money transactions go as a result of digital channels at Garanti BBVA. The range of regular monthly logins to Garanti BBVA Cell also increases consistently – we reached two billion logins in 2020. With the enactment of the open up banking legislation in our state this year, digital banking and payment companies are getting reshaped and created.

With Garanti BBVA Cell, onboarding starts off and ends at Garanti BBVA Cell. With end-to-finish digitalisation of the onboarding procedure, the use of this channel is currently being expanded by way of business partnerships. For occasion, with ‘quick financial loan,’ after filling in the ‘how a great deal can I borrow?’ kind, non-buyers are referred to the digital onboarding process.

 

Explain to us about your sustainability ambitions and how they are progressing
We try to minimize Garanti BBVA’s carbon emissions and be environmentally friendly in our non-in-household steps. To illustrate, we met the electrical power desires of roughly 73 million kWh (which corresponds to the use of somewhere around 30,000 residences in our 46 structures and 809 branches) from renewable vitality.

This prevented 34,790 tons of CO2 equivalent carbon emission, which corresponds to the sum of greenhouse gasoline that can be minimized by 2.2 million trees. Our ‘GoGreen’ job encourages customers to boost their contribution to sustainability. We will go on to encourage our prospects to adopt more sustainable enterprise styles with ground breaking solutions and providers.

We have a concentrate on of delivering a bare minimum of TL2.5bn (€244m) to finance sustainable enhancement and combat local weather transform in 2021, with a determination to allocating a minimum funding of TL14bn (€1.3bn) in this area by 2025.

 

Has distant performing in just your corporation afflicted processes – and has distant performing for prospects made a variation?
All through the pandemic, digital channels went outside of getting an different and arrived to the fore as the sole banking technique. The total sector discerned that totally digitalised banking enabling 100 p.c remote execution of processes – a thought prolonged owned by Garanti BBVA – was not the eyesight of a remote upcoming but a requirement of today’s planet.

We ended up capable to make the changeover in functions seamlessly, many thanks to our robust technological infrastructure. To assure the basic safety of our workforce, we offered the gear necessary for functioning from property, and extra than 1,000 get in touch with centre brokers began featuring companies from house in just 10 times. At current, 92 per cent of head business workers, 60 percent of branches and the complete physique of simply call centre staff are working remotely.

Shopper behaviors was yet another place affected by the pandemic. The most basic modify for the banking sector was the elevated use of substitute channels and the surge in quantity of electronic customers. March 2020 marked the best improve in the range of digital buyers. The ratio of transactions realised at branches went down from amongst 5 to six % to among two to three percent. In the foreseeable future, we could possibly see in-branch services staying restructured and digital channels commencing to furnish advisory expert services made to strengthen customers’ fiscal wellness, alternatively than operational solutions.

 

Any adjustments in your banking in the course of the pandemic and for the ‘new normal’?
We observed our relationship with our shoppers receive a new dimension. Clients no for a longer period regarded the financial institution as just a financial advisor but expected it to undertake the hygienic measures of a healthcare qualified at the exact same time. We took motion to reduce density in branches and we wrecked any credit rating playing cards that were being to be gathered in branches, then re-issued them to be sent to dwelling addresses.

In the course of the pandemic, digital channels went beyond being an alternative and came to the fore as the sole banking technique

Simply because of actions like these, 95 p.c of the prospects visiting branches in between April and September commented that they have been really happy with branch services and precautions. To warranty company continuity, we took ways to enrich performance on digital channels, and achieved nearly 500 transaction sets on our mobile banking application. To persuade shoppers to execute their transactions digitally, we taken off charges for electronic revenue transfers, organised new strategies, current present types, and increased income transfer restrictions on digital channels.

We provided to defer and restructure the money owed on our bank loan merchandise and amplified credit history card payment boundaries to facilitate on the web shelling out for retail consumers (see Fig 1). Also we have released a credit score card payment deferral offer you for shoppers fiscally distressed simply because of the pandemic. Additional steps provided a few-month postponement and six-thirty day period instalment reimbursement designs for effortless compensation of the total personal debt at the close of this period.

Solutions like these assisted clients take care of temporary payment difficulties, preserved their funds belongings amid the uncertainty, postponed their card money owed whilst letting them to carry on to use their playing cards, and prevented any downgrading of their credit rating scores. The selection of annual contactless transactions tripled with contribution of payment with QR, mobile and GarantiPay. We enhanced the selection of QR-enabled devices and recognized back links with a variety of e-commerce companies.

 

Any recent or planned improvements?
End-to-conclude digitalisation of the Garanti BBVA Cell onboarding system launched in 2019. It is now completely enabled on completion of the regulatory framework in May 2021. Application processes for merchandise these kinds of as credit score, credit rating playing cards, buying loans and overdraft accounts to name a handful of, are all built-in. Also, with the inclusion of wage customers, we are presenting individuals with the chance to comprehensive the onboarding system at any time, from any place. This new step will mitigate the workload on branches and will also open up channels for new consumer acquisition. Garanti BBVA Cell onboarding will set us aside from our competitors upon enlargement with business partnerships.

Thinking of that we deliver pretty much just about every products to the shopper as a result of electronic channels, the only simple transaction shoppers could not perform in the digital atmosphere was the expertise of becoming an account holder. With this arrangement, lender shoppers are now in a position to open up an account in a highest of 10 minutes, and obtain the products and solutions they want, without going to the department or signing sheets of paper. Buyers want quick methods for their wants. Economic establishments with a sturdy technological infrastructure will have an gain in conference and exceeding these expectations. Digitalisation will give us the possibility to arrive at every domestic and gain shoppers in each individual corner of Turkey.

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