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