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The Turkish Sector has attracted significant
Foreign Investment in the last few years
Foreign participation in top 10 private banks
(USD bn, of shares)
Under penetration
20.85
20
40.9
Young and growing population
84.7
99.81
Improving macro parameters, economic environment
100
100
42.1
93.3
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• Garanti Brief Introduction

Total Assets
US 66 bn

• Integrated financial services company
• Technologically advanced, innovative and dynamic
• Customer-centric growth model with key focus on
  profitability and asset quality
• Ownership structure
• 51 owned by Dogus Group (30) and GECF (21)
• 49 in the free float

Shareholders Equity
US 6.4 bn
2008 Net Interest Income
US 2.1 bn
2008 Net Profit
US 1.12 bn
Branch Network2
740
Customer Number2
7.5 mn
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GarantiBank ADC
ADC Customers
5.5 million
Online Customers
1,600,000
ADC Usage Rate
87
Transactions
30 mio/mth
Volume (USD)
50 bn/mth
Total Revenue (USD)
95 million
Volume and Total Revenue are estimated for 2009
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Garanti Alternative Distribution Channels
Branch Network
Call Center

• 740 branches
• 13,500 employees

• 3.3 million calls/month
• 2.5 million product sales annually

www.garanti.com.tr / Online Banking
wap.garanti.com.tr / Mobile Banking

• 1.6 million online banking customers
• 15 million transactions/day
• 3.7 million product sales annualy

• 250.000 Mobile Banking Users
• Most of the Online Banking Transactions

Internet Kiosk
CepBank

• 600 Kiosks
• All Online Banking Transactions

• 280.000 users
• 9 Different SMS Banking Transactions

ATMs

• 2.700 ATMs
• 10.060 Golden Point ATMs

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Garanti Alternative Distribution Channels
Availability
Convenience
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Online Banking?
Improve Customer Retention
Improve Branch Performance

• Guarantee speed
• Availability
• Create convenience
• Provide personalization

• Create more time for sale
• Reduce operations load cost

Exploit New Sales Opportunuties
Increase Brand Equity

• Cross/up-sell
• Sales lead generation
• New customer acquisition

• Strong communication
• Strengthening corporate identity

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Creating Loyal and Valuable Customers
Cost
Loyalty
Net Promoter S.
98,5
15 contacts/month
20
Less Cost
More Contacts
More Satisfaction
Sales and Profitability
45
55
More Sales
More Profit
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Mobile Usage

• Which medium would be your last choice if you had
  to leave?

Newspaper
Radio
Periodical
Internet
TV
Mobile

• Source 2006 TNSPiar

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Garantibank Mobile Banking Strategy
SMS Banking
Mobile Payment CepBank Shopping

• CepBank Financial Transactions
• Instant Loan Application

• e-Commerce

• Ordered Payments Call Centers

• Inquiry Services

• Push Services

• Bonus Trink - Mobile Wallet

• Pull Product Sales

Security
Mobile Banking Cep Subesi

• Soft Tokens

• Public Site

• Mobile Signature

• SMS OTP

• Secure Site

• Security Alerts Transfer Alerts

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• Distribution innovation Personal Loan in 5 min.

Value proposition
Impact

• 4.000.000 applications

Instant pre-approval in max. 5 minutes

• 800.000 applications via SMS

Multi-channel approach via Internet, ATMs, Call
center and SMS
Impact After 1st year

• Monthly Volume X 13
• Monthly Applications X 120
• Approval Rate X 5

Quick and easy application for both customers
non-customers
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CepBank Money Transfer
Money Transfer by a single SMS to even
non-customers
Garanti Customer
Non-Garanti Customer
Through All Operators
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• Distribution innovation SMS banking

Value proposition
How it works?
(1) Sends an SMS to 3333, with receiver phone
number, payment amount and password
Money Transfer to Non-Customer by SMS 1st in
the World
6 Different Transactions

• Money Transfer to Mobile Phone (Non-Customer)

• Credit Card Payment

(2) Garanti sends an SMS to the receiver which
contains the Senders Name, Surname and the PIN

• Money Transfer to Registered Accounts

• Toll Payments

• Mobil Phone Top-Up

• Game of Chance Payments

Usage in Mobile Marketing Campaigns of FMCG
Companies
(3) Receiver uses the Cardless Transactions
menu to withdraw cash by entering his mobile
phone number, senders phone number, amount and
the PIN code sent via sms
Impact 300.000 CepBank Customers
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CepBank in Mobile Marketing Campaigns
Cash Promotion in 30 mio Doritos Fritolay Potato
Chips Packages

• Winners withdraw cash from the ATM by using the
  information in the SMS no need to be a
  Garantibank customer

25.000 Doritos Fritolay Potato Chips Consumers,
400.000 USD in Cash
40.000 Nestle Crunch Consumers, 200.000 USD in
cash
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Mobile Payment, CepBank Shopping
Security
Ease of Use
Flexibility
Operator Independence
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How Does Garanti CepBank Shopping Work?

• Client chooses CepBank Shopping option after
  completing shopping procedure. He enters the
  mobile phone number, that is registered to
  CepBank, into Mobile Phone Number field

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How Does Garanti CepBank Shopping Works?
PLEASE REPLY BY ENTERING YOUR CEPBANK PIN TO
APPROVE PAYMENT OF 21,49 YTL WITH THE REFERENCE
NUMBER 1417045 FROM HEPSIBURADACOM.
YOU HAVE PURCHASED FROM HEPSIBURADACOM WITH THE
AMOUNT OF 21,49 YTL. CEPBANK.
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How Do We Use Mobile?

• More than 5 million WAP users.

• More than 30 million mobile phones (60) WAP
  enabled.

YEAR
2000
2005
2007
2009
SPEED
20 kb/sec
50 kb/sec
100 kb/sec
7.2 mbit/sec
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Garanti Mobile Banking
Banking Any Time Any Place
Fast and Convenient Usage
Same Visual Experience for All Mobile Phones
No Download, No Activation
Totally Free!
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Garanti Mobile Banking, On every screen
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How Do We Use Mobile?
Most Banking Transactions Covered by Mobile Branch
Credit CardTransactions
Credit CardSummary
Payments Utility Bills
Stock Exchange
MoneyTransfers
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Garanti Mobile Banking, Transactions
Investment Transactions
Credit Card Transactions

• Stocks

• Credit Card Information, Balance and Spending
  Inquiry

• Mutual Funds

Transfers

• Credit Card Debt Payment

• Money Transfer to Account Name

Utility Bill Payments

• Fast Money Transfer to Registered Accounts

• Utility Bill Debt Inquiry

• Electronic Fund Transfer

• Payment with Installation Number

Inquiry Services

• Balance and Transaction Inquiry

• Municipality, Natural Gas, Electric, Company
  Payments, Insurance Payments, Consumer Finance
  Payments, Telecommunication Payments etc.

FX Transactions

• Foreign Currency Buy/Sell

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Garanti Mobile Banking, Now for iphone
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Bonus Trink Mobile Wallet

• Announced first PayPass Credit Card in Turkey
• First NFC Sticker in the world NFC Watch in
  Europe
• Launched on January 16, 2008 (NFC) trial for
  mobile payments 
• A contactless MasterCard PayPass credit card
  application is
• stored on the SIM card as a secure element 

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• Product tailoring Credit cards example

SM
Bonus Prepaid Paracard
Bonus
Club
Club Prive
Flexi
American Express
the common people
Open-minded
High spending, gives importance to status,
social, prefers luxury
High expectations, high spending
Highworldwide spending, quality life style
Customer reflection
Charismatic, The original, makes life easier
Cheerful, young, dynamic, energetic
Innovative, funky
Charismatic, The original
Powerful, confident
Personality
If I fly a lot and use SM for my flight and
shopping purchases, i will earn miles
I fly a lot and need a personal assistant
I am clever and spend my money in a smart way
Smart, individual, aware
Elite, Prestigous
Self-image
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QA
Thank You...
Ali Süha Ter suhat_at_garanti.com.tr