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Garanti Payment Systems:: Digital Transformation Strategy

Garanti Payment Systems (GPS) is developing a digital transformation strategy to manage its credit card loyalty program. GPS is considering developing a separate mobile app for credit card customers to manage daily campaigns and provide personalized offers and notifications. However, there are concerns that a separate app may not provide the desired shopping experience or be designed well to manage campaigns. After analyzing the advantages and disadvantages, the presentation recommends that GPS should develop a separate mobile app for credit card loyalty customers to leverage their favorable digital position and better target the different needs of credit card customers versus regular banking customers. The app would focus more on shopping benefits than money management features.

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Swarnajit Saha
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177 views12 pages

Garanti Payment Systems:: Digital Transformation Strategy

Garanti Payment Systems (GPS) is developing a digital transformation strategy to manage its credit card loyalty program. GPS is considering developing a separate mobile app for credit card customers to manage daily campaigns and provide personalized offers and notifications. However, there are concerns that a separate app may not provide the desired shopping experience or be designed well to manage campaigns. After analyzing the advantages and disadvantages, the presentation recommends that GPS should develop a separate mobile app for credit card loyalty customers to leverage their favorable digital position and better target the different needs of credit card customers versus regular banking customers. The app would focus more on shopping benefits than money management features.

Uploaded by

Swarnajit Saha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Garanti Payment Systems:

Digital Transformation Strategy

Presenters: Abhishek Singh


Kaberi Makhar
Swarnajit Saha
Rajdipta Barman
Vaishali Yadav
Slide 1: Introduction

• Garanti Bank founded in 1946


• Turkey’s second largest private bank, with leading position in retail banking
• Served 13.1 million customers through 1,005 branches and 4,152 ATMs
• Biggest private bank lender with 12.5% market share in consumer loans and 13.7% market share in
mortgage loans
• 1994, became customer focused bank
• 1996, introduced Turkey’s first credit card instrument and telephone banking
• 1997, introduced Internet banking
• 1999, spun-off many operations as subsidiaries
• Garanti Technology and Abacus induced cost-savings
Slide 2: Key Person’s

• Onur Genc- EVP of Retail banking and CEO of GPS


• Isil Akdemir Evlioglu- Marketing EVP at GPS
• Didem Dincer Baser- Digital channels and Social platforms EVP
Slide 3:Issues

• Should Garanti develop separate mobile app for credit card loyalty
program customers
• Who should manage the separate app if developed
• If separate app not developed, then how questions about breadth
and depth of functionality for credit card customers needed to be
resolved
Slide 4:Garanti Payment Systems (GPS)

• Subsidiary of Garanti Bank


• Managed Bank’s credit card business
• Umbrella brand and flagship product- BONUS CARD
• Operating GPS as separate entity allowed nontraditional marketing technique
• Prioritized Customer experience
• Ran 100 Bonus credit card campaigns every month
• Marketing activities: TV commercials, Print media and outdoor advertising, Promotional
campaigns, In-store advertising
• Bonus Card sponsored popular concerts
• Used Guerilla Marketing to integrate brand
• Had higher scores in all aspects than competitors as per Survey conducted
Slide 5:Bonus Card

• Offered customers- installment payment plans and rewards


• Offered interest free payments sale of upto 18 months purchases
• Market leader with 9.4 million credit cards
• Customers earned “Bonus” points for shopping
• One Bonus point was equal one Turkish Lira
• Had instant redemption at point of sale (POS)
• Features offered created loyalty and stickiness with customers
Slide 6:Data Analytics

• Wanted to use for value creation of customers, retailers and company


• Used customer data and spending history for campaign’s
development
• 3 main scenarios for merchants : Basket size improvement, Increasing
frequency and New customer acquisition
• Offered campaigns to cardholders according to previous shopping
• Analytics team designed 300 campaigns for each month
Slide 7:E2E Campaign Management

• Campaign began after customers were contacted


• Communicated through: Card’s website, SMS, Call center,
Advertisements
• Primary enrollment through SMS
• 18% increase in enrollment from 2014-2015
• Customer queries increased along with the Campaigns
• Campaign tracking was expensive to the call center volume
Slide 8:Regulator’s Actions

• Aim was to curb consumer indebtedness which doubled in 2010-


2013. Actions:-
• Increase risk weight applied to installment payments by 25% to 50%
points
• Raise minimum monthly payment amounts of credit card balance
Slide 9:Future Digital Strategy

Advantages:- Disadvantages:-
• Transfer campaign management to an app,
driving down costs and boost revenues • Not create desired shopping app
• 2013, 81% Bank’s transactions was via digital
experience
channels • Not designed to manage daily campaigns
• Garanti scored 99/100 in transactional features • No Push notifications
• Full fledged banking experience • Concerns for mobile banking app
• App features:-Loans to accounts, deposits, seriousness
personal finance management, investment,
utility payments and location recognition • No prior experience with team
• Digital engagement 60% higher than average • More time and technology investments
customers
Slide 10:Recommendation

• We suggest that Garanti should develop a separate mobile app for


credit card loyalty program customers 
Bonus enjoyed a favourable digital position
40% of Bank’s customer were not GPS credit card customers
Bank’s App has embedded location services, not favourable for
credit card customers
Different types of customers, bank’s mobile app was about money
and seriousness, while credit card customers were about shopping
Thank you

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