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    Garanti Bank - Leveraging Technology To Advance in Business

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    Korhan Coskun
    Garanti Bank underwent a complete transformation in the 1990s to become one of Turkey's premier financial institutions. It changed from a mid-sized commercial bank with 317 branches into an integrated financial services company with over $90 billion in assets and 893 branches across Turkey. Garanti leveraged advanced technology throughout this process, developing many innovative products and services. This included being the first bank to enable money transfers by mobile phone and launching Turkey's first chip-based, multi-branded credit card. Today, Garanti continues to drive innovation across its multi-channel distribution network through new technologies.

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    Garanti Bank - Leveraging Technology To Advance in Business

    Uploaded by

    Korhan Coskun
    265 views20 pages
    Garanti Bank underwent a complete transformation in the 1990s to become one of Turkey's premier financial institutions. It changed from a mid-sized commercial bank with 317 branches into an integrated financial services company with over $90 billion in assets and 893 branches across Turkey. Garanti leveraged advanced technology throughout this process, developing many innovative products and services. This included being the first bank to enable money transfers by mobile phone and launching Turkey's first chip-based, multi-branded credit card. Today, Garanti continues to drive innovation across its multi-channel distribution network through new technologies.

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    Garanti Bank's Technology impelementation to boost business By Eray Yüksek IBM

    Original Title

    Garanti Bank -Leveraging Technology to Advance in Business

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    Garanti Bank underwent a complete transformation in the 1990s to become one of Turkey's premier financial institutions. It changed from a mid-sized commercial bank with 317 branches into an integrated financial services company with over $90 billion in assets and 893 branches across Turkey. Garanti leveraged advanced technology throughout this process, developing many innovative products and services. This included being the first bank to enable money transfers by mobile phone and launching Turkey's first chip-based, multi-branded credit card. Today, Garanti continues to drive innovation across its multi-channel distribution network through new technologies.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    265 views20 pages

    Garanti Bank - Leveraging Technology To Advance in Business

    Uploaded by

    Korhan Coskun
    Garanti Bank underwent a complete transformation in the 1990s to become one of Turkey's premier financial institutions. It changed from a mid-sized commercial bank with 317 branches into an integrated financial services company with over $90 billion in assets and 893 branches across Turkey. Garanti leveraged advanced technology throughout this process, developing many innovative products and services. This included being the first bank to enable money transfers by mobile phone and launching Turkey's first chip-based, multi-branded credit card. Today, Garanti continues to drive innovation across its multi-channel distribution network through new technologies.

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    of 20

    Leveraging Technology to

    Advance in Business

    Eray Yuksek

    Change Journey of Garanti

    Harvard Case Study


    Garanti Bank: Transformation in Turkey
    by Rosabeth Moss Kanter, Daniel Galvin, Maximilian Martin
    Publication date: Apr 05, 2000. Prod. #: 300114-PDF-ENG
    Discusses the complete transformation and turnover in every division of
    Garanti Bank. Describes the multiple change projects managed and
    cross-cultural issues confronted during the 1990s and the organizational
    challenge of transforming Garanti Bank into one of Turkey's premier
    financial institutions

    Garanti in early 90s

    Mid size commercial bank


    Total 317 branches
    Market value was $150 million
    Total active assets $1,6 billion
    5,900 employee. %32 of employee university graduates.
    11 levels in organization hierarchy .
    Bank organization is based on products and functions
    rather then customer
    Issued 43,000 credit cards.

    Garantis Change Journey Road Map


    The challenge of the change at Garanti has been to create a culture which is completely
    opposite f the culture prevalent in Turkey. The change was decisive - we had to move fast,
    and those who could not come to accept the change, were left by the wayside. From the
    inside out, the view was sometimes chaotic, but it was a systematic chaos.
    Y.Akn ngr Ex CEO, Garanti

    Key factors driving innovation and


    change
    Changing customer expectations

    Changing the concept of banking


    from money management

    to financial services to meet


    customer needs

    Market conditions
    Need for relationship banking

    The Vision

    Market share and profitability

    Garanti should become a financial

    IT revolution

    supermarket

    Growth

    Garanti should stand out among the other banks


    in delivering customers what they need and
    not what the bank can offer

    Globalisation
    Anticipation of a macroeconomic environment
    characterised by lower inflation

    Therefore the bank has to focus on customer

    satisfaction
    4

    Garantis Change Journey Road Map


    Strategic change projects...
    1992
    1992

    1994
    1994

    1998
    1998

    1996
    1996

    Cash Service
    ADC
    Branches
    CRM
    Commercial
    Reshaping
    Banking
    Branch
    Acik
    Network
    Corporate
    BPR

    Central
    Banking
    Foreign
    Regional
    Trade Ops
    Ops

    Segmentation
    Center
    Credit Culture
    Investment
    Centers

    Retail
    Banking

    Branch
    Redesign

    2002
    2002

    2000
    2000

    Abacus

    IT and
    Central
    Operations
    Unification
    SME

    2004
    2004

    2007
    2007

    SES
    Segmentation
    EVA

    Mergers

    Retail
    Segmentation
    Affluent
    Banking
    Code of
    Commercial
    Sales
    Segmentation
    Retail Service
    Model

    ... enabled by advanced technology

    Customer system Network design &


    impl.
    POS

    MS Windows impl.
    IVR
    Paralled Sysplex
    Central database
    Cheques image
    recognition

    Development tool
    selection
    IBM FDM, BDW data
    models

    MS Exchange & NT
    impl.

    Advanced queue
    mgmt.

    Datawarehouse impl.
    Fax integration

    Image processing
    &recognition

    Electronic
    workflow
    Datamining
    MR-single version
    of truth
    Customer
    profitability
    CRM & propensity
    modeliing
    IMS/DB to DB2

    Sales mngmt tools


    Financial Analysis
    Report

    Java based internet


    and call center

    application
    Campaign

    management
    Budget system

    Cardless
    Garanti Romania
    transactions
    Coin dispensers
    Pocketbank
    Blackberry
    applications
    Data capturing and
    recognition

    Garantis Change Journey Road Map


    Strategic change projects...
    2008

    2009

    Loan
    Process
    Mobile
    internet
    branch IP Contact Center
    Risk
    management Video
    Logo entegration
    Fraud
    3G applications
    management
    Legal Follow up
    Collection

    Garanti, Integrated Financial Services Co. Focused on Retail

    Retail

    Affluent

    Upscale

    Payment
    Systems

    Corporate

    Commercial

    Garanti Bank caters any financial need of its


    customers with having a presence in all business
    lines including corporate, private, commercial,
    SME, retail and investment banking.

    SME

    Medium

    Small

    Mass

    Mass Market

    Financial Subsidiaries

    Garanti operates as an integrated financial services company with


    its nine subsidiaries offering service in payment systems, pension,
    leasing, factoring, brokerage and asset management

    Turkish Banking Sector - Assets & Major Players


    Top Private Banks by Asset Size 1Q 2011
    Foreign
    ownership
    %

    Total Assets (US$ bn)


    CAGR: 21%
    613 633
    519
    468

    450

    337

    25.01%
    Top 10
    Private
    Banks:
    64%

    288

    20%
    40.9%

    217
    170
    127

    94.73%
    State
    Banks:
    32%

    99.84%
    61.93%

    2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q11

    100%

    100%
    33.98%

    Garanti - Pre-eminent Banking Franchise


    Total Assets

    US$ 90 bn
    Q1 2011 Net Income

    US$ 597 mn

    Integrated financial services company


    Technologically advanced, innovative and dynamic
    Customer-centric growth model, key focus on
    profitability and asset quality
    Ownership structure:
    Jointly controlled by Dou Group and BBVA

    Branch Network

    893

    51% in the free float

    Asset Growth
    Customer Number
    US$ Billions

    >10.1 mn

    CAGR: 26%

    100
    90
    80
    70
    60
    50
    40
    30
    20
    10
    0
    2002

    2003

    2004

    2005

    2006

    2007

    2008

    2009

    2010

    1Q11

    Leveraging Technology to Advance in Business


    Garanti has differentiated itself from others by information Technology...
    A wholly-owned subsidiary of Garanti Bank.
    One of the largest IT service providers in Turkey. (900 employee)
    Creates tightly integrated and fully in-house developed, custom-fit IT solutions
    Focused on banking and financial services
    IT services with state-of-the-art information technology
    Well-reputed as innovator and visionary
    Business & IT
    Alignment
    Innovative customer oriented products and services
    Best customer relationship management solutions
    Alternative Distribution Channels
    Centralized operations
    Business Intelligence solutions
    Garanti with $90 billion asset size, is recognized for the 11th time as the
    Best Bank in Turkey by Euromoney

    Design Principles and Key Features


    24x7 Real-time on-line application

    Banks continue to process business seamlessly as End of Day processing is not a


    necessity; it is just for backups, interest accruals and MIS populations.

    All updates and inserts are done in real time including Accounting

    Modular yet fully integrated solution

    Integration at database level. Not Siloed applications

    Single Customer View


    Compliance with regulatory requirements

    Easy of use. Different application views (portals) for different


    user roles

    Design Principles and Key Features


    Scalable
    The state-of-the-art 3-tier architecture has the capability to handle
    high volumes of transactions from large number of users across
    multiple channels and modules.
    The architecture ensures consistent high performance and quick
    response times

    Multi Currency
    Channel
    Lingual
    Country

    Strong Distribution Channels . All channels use same back-end applications for
    business logic and database access.

    Banking System Architecture

    All channels are serviced by in-house developed software and by the same host system
    Channel
    Management
    Fax

    SMS

    IVR

    Document
    Management

    Banking
    Application
    Process
    Automation
    Image Processing
    Credit Cards
    Acquiring
    Credit Cards
    Issuing
    Commercial
    Loans
    Consumer
    Loans
    Foreign Trading

    Accounting

    Call Center

    Smart
    Phones
    Securities and
    Treasury
    Cheques

    EFT / SWIFT
    Payments
    Cash Delivery
    Management
    Fee and
    Commission
    Budgeting
    Teller

    Risk Managemnet

    Business Reporting,
    Business Intelligence

    Customer Information System

    Software
    enabling
    central
    operations
    Collection

    Tightly integrated
    Developed in-house
    Single customer database
    Integration at the data level

    Mobile
    Devices

    WEB

    eMail

    POS

    ATM

    Branch Office

    Security System, Fraud & AML

    Technology Infrastructure

    Intel
    servers

    Windows
    clients

    Client
    Appl.

    Fax
    SMS

    Internet
    Infrastructure

    Workflow

    Client/Server applications

    Z196
    717

    Web Based Applications


    Internet
    banking

    Document
    Management

    Payment
    Systems

    z/OS

    Mobile
    Devices

    CICS

    DB2

    Unix
    Servers

    Parallel Sysplex Architecture

    Contact
    Center

    .NET
    Applica.

    Application
    Servers

    Oracle
    MS SQL

    Virtualization & Consolidation

    Systems management

    Central
    Operations

    Kiosk

    ATM

    Service Level Management

    HQ
    Regions

    Branch

    Network Management

    Video
    systems

    Voice
    systems

    Mobile

    IT Security
    Operations

    DW and Datamining Business Intelligence

    Digital
    capillary
    network

    Digital
    backbone

    Office
    Appl.

    Disaster Recovery

    14

    Garanti - Multi-Channel Distribution Network


    Online Banking
    ~1.8mn Internet Bank Active
    Customers

    Branch Network
    893 Branches
    Presence in 76 Cities:
    94% Geographic Coverage

    >750k Log-ins Daily


    ~13 mn Transactions/mo
    Recognized As Turkeys Best
    Internet Bank

    Contact Center
    ATM
    3,160 ATMs
    19 mn txs/mo
    Cardless Transactions
    Coin Dispenser
    1.1 mn logins on peak
    days

    Mobilebank
    1st in the World to Allow
    Money Transfer Via SMS
    223k Users
    wap.garanti.com.tr --1st
    internet bank access via
    mobile in TR w/o application
    downloads or activations

    4.6 mn Calls/mn
    >1.1 mn active customers
    14 seconds: avg.
    response time
    256k Sales/mo

    15

    Garanti Technology - Integrated to our Daily Business


    Cepbank the first application in the
    world that provides money transfer
    service by mobile phone (2005)

    Bonus Card Turkeys first chip-based


    and multi-branded credit card.(2000)

    Flexi Card Worlds first flexible credit card,


    which allows for the customization of all
    parameters including financial and visual.(2005)

    Bonus Trink the PayPass


    featured credit card with
    contactless chip technology.
    (2006)

    Paperless banking Worlds first


    ID-scanning application has created
    a paperless branch, which offers a
    shareable, easy-to-access and soft
    branch environment (2006)

    Cepubesi the mobile branch


    was launched (2007)
    Garanti Mortgage the
    first mortgage call center
    with IVVR system in the
    banking sector, enables
    customers to have a video
    call. (2008)
    Money Card Turkeys first credit card
    which is multi-branded and also offers
    brand-specific loyalty benefits (2009)

    BonusluAvea Launched the worlds


    first NFC (Near Field Communication)
    payment enabled SIM card (2010)

    Golden Bonus Card the worlds first


    gold - saving credit card (2010)

    Extensive Business Performance Monitoring


    A single source of data is
    created to establish a common
    understanding across the bank

    Management information is
    provided at all levels for
    performance monitoring
    Bank level
    Business line level
    Region level
    Branch level
    Sales person level
    Customer level

    Customer
    Profitability

    Single data dictionary


    Standardized management reports
    Consolidated data integration into
    management reporting platform

    Single
    Version of
    Truth

    Platform for management and


    legal reporting

    Budget
    Planning

    IBM BDW data model is used in designing DW


    Business Intellligence (Datamining) projects with IBM team
    Management reporting and CRM projects with IBM team selected as
    finalist in IMS 2001 London event
    17

    Performance Figures for Systems and Operation


    Number of Transactions / Day (mio.)

    91

    2007

    142

    2008

    Average daily txs.


    Peak daily txs.

    150

    198

    Average Internet trx/ Month (000)

    215
    8,286

    2009

    2010

    2007

    2011

    : 215 million
    : 270 million

    9,967

    2008

    11,327

    2009

    11,690

    2010

    12,640

    2011

    Internet Average trx/month


    : 12,640,000
    Internet Logins/day on peak days :1,209,639
    Internet Average response time : 30 msec.

    Average response time: 0.042 sec.

    End to end average response time


    (second)
    0,39
    0,31
    0,09

    0,095

    Operation Investment
    center
    centers

    0,12
    Branch

    POS

    ATM
    withdraval
    18

    Disaster Recovery service from IBM


    ZMR IBM Site

    STANBUL

    GDPS (Geographically Dispersed Parallel Sysplex)/ XRC (Extended Remote Copy) solution
    Compliant with GBs Disaster Recovery & Business Continuity plan
    25,5 TB total transferred disk size, 4.7 TB daily updated data
    Two test slots per year

    Istanbul
    Izmir

    565 km away from istanbul


    19

    VIDEO BY TUFAN ALATAN EVP GARANTI TECHNOLOGY

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