Geographic Infrastructure and Analysis in CRM

CRM Marketing Data Mining and Optimization Department

Aren HADDELER

Vice President

CRM Division

2

I. About Turkey

II. About Akbank

III. CRM Capabilities and Transformation

IV. CRM Analytic Architecture

V. Geocoding

VI. CRM Geocoding Infrastructure

Analytics

Maps.Akbank

Optimization

Mobile Applications

VII. Roadmap

Agenda

2

CRM Division

Turkey - Growth potential

Turkey ;

18’th largest economy in the world and 7’th largest in Europe (incl. Russia) with US$ 720 bio GDP

Robust long term growth potential fuelled by favourable demographics

Easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa

Sustainable and relatively strong GDP growth of 3.6% between 2002 and 2014

3

CRM Division

Turkey presents a challenging and exciting environment for banking

Scale advantage (US$ 720 bio, 79 mio population)

Rising prosperity (GDP/Capita tripled in less than a decade)

Rising wealth of middle class

Young population, 50% under the age of 29

41 mio broadband internet subscribers

58,2 mio credit card users in 2015, up from 17 million in

2002

73,2 mio mobile phone subscribers

37 mio mobile internet users

181,1 mio airline passengers

Economical Condition

Populational Overview

4

CRM Division

Strong Growth in Last Decade

0

2

4

6

8

10

12

0

50

100

150

200

250

Number of Branches and Employees (Thousand)

Number of Branches Number of Employees

0

2

4

6

8

10

12

14

16

Total Assets (In constant prices based on 2001)

0

5

10

15

20

25

30

35

40

Loans and Receivables (In constant prices based on 2001)

0

2

4

6

8

10

12

Deposits (In constant prices based on 2001)

5

CRM Division

• Relative low penetration of most banking products implies opportunities

• 48 mio population unbanked&semibanked

• Household debt/GDP: 21%

• Mortgage/GDP: 7%

•Pension funds/GDP: 2.5%

• ~6 trillion TL banking assets by 2023 (in line with Turkey becoming 10th largest economy)

Financial Intermediation Indicators (% of GDP, Turkey: 2012, EU-27: 2011)

354

130

189

97

54 56

Assets Deposits Loans

EU 27 Turkey*

* including participation banks,

Source: BRSA, CBRT

19 16

25 28

10 12

2011 2015

Unbanked

54 56 Total

Semi banked

Banked

Banking Potential (Mio)

Strong Future Growth Potential

6

CRM Division

7

CRM Division

Akbank is Turkey’s Leading Bank

Market Share Indicators

Wealth Management : 11%

Lending Business(Consumer) : 10%

Lending Business (Commercial) : 9%

Exports : 24%

Imports : 11%

Money Transfer & Checks : 11%

Tax & Insurance : 13%

Assets :$ 80,3 bio

Loans :$ 48,5 bio

Deposits :$ 47,5 bio

Net Profit :$ 1.098 bio

ROE :15%

Customers :14.6 M

Personnel :13,9 K

Branch :897(domestic+abroad)

ISE 100

Market Cap.

93.8%

Share of Akbank’s Market Cap.

Akbank

6.2%

8

CRM Division

• 897 branches throughout Turkey

Adana 27

Adıyaman 1

Afyon 6

Ağrı 3

Aksaray 1

Amasya 3

Ankara 85

Antalya 40

Ardahan 1

Artvin 3

Aydın 11

Balıkesir 16

Bartın 1

Batman 1

Bayburt 1 Bilecik

2

Bingöl 1

Bolu 4

Burdur 2

Bursa 41

Çanakkale 5

Çankırı 1 Çorum

4

Denizli 10

Diyarbakır 4

Zonguldak 5

Edirne 6

Elazığ 3

Erzincan 1

Erzurum 3

Eskişehir 7

Gaziantep 15

Giresun 5

Hatay 10

Iğdır 1

Isparta 4

Mersin 18

İstanbul 315

İzmir 76 Kahramanmara

ş 4

Karabük 2

Karaman 1

Kars 1

Kastamonu 5

Kayseri 15

Kırıkkale 2

Kırklareli 4

Kırşehir 1

Kocaeli 25

Konya 19

Kütahya 5

Malatya 3

Manisa 11

Mardin 3 Muğla

16

Muş 1

Nevşehir 4

Niğde 2

Ordu 5

Osmaniye 2

Rize 6

Sakarya 11

Samsun 11

Siirt 1

Sinop 3

Sivas 4

Şanlıurfa 6

Şırnak 1

Tekirdağ 17

Tokat 6

Trabzon 10

Uşak 2

Van 1

Yozgat 2

Yalova 2

Bitlis •1

•1 Kilis

• 2

Gümüşhane

Akbank Branch Footprint

9

CRM Division

167 190

234 261

336

2011 2012 2013 2014 2015

Loan + Deposits / Branch (TL mio)

1.8

2.2 2.3 2.5

2.8

2011 2012 2013 2014 2015

Commission / Branch (TL mio)

3.00

3.15

3.24 3.30 3.30

2011 2012 2013 2014 2015

Cross-sell ratio for average customer*

6.1

7.8

9.2 9.7

11.4

2011 2012 2013 2014 2015

Revenue / Branch (TL mio)

* Based on product bundles with conservative approach

Increasing output efficiency

10

CRM Division

11

CRM Division

CRM Transformation

Sales effectiveness

Customer satisfaction

Offer accuracy

2008

Implementation of

Chordiant Technology

Pilot Programs,

Training &

Adaptation

Data Mining

Database Marketing

Campaign Management

Product Focused

Customer Focused

Customer Sensitive

Experience Management

2011

Add-on business

models and

enhanced

infrastructure

Akbank Sales & Marketing

Automation Project

2012 & 2013 2015+

Optimized

campaigns and

offers

High

Performance

Analytics &

Big Data

Event Optimization

2005

2009

2010

More than 300 products

8 Channels

~15 million customers

~5.5 billion transactions/year

Our Marketing Challenge

12

CRM Division

Analytical CRM Architecture

13

CRM Division

Integrated customer management

Customized offers in all channels

Real time marketing &Optimization

Marketing Automation

%85 Customer Retention Rate

3.000 k+ Targeted Product Sales

100+ Predictive models

300+ Real time offer

Customized Pricing Analytics

Increased branch sales effectiveness

SME branch network re-structured

Standardized sales approach

Regional sales strategies

Every branch personnel as a sales person

Enhanced monitoring and reporting

Improved CRM capability

2011 Gartner CRM Excellence -

Integrated Marketing Exellence

Award

2012 Retail Banker International

(RBI)- Best Use of CRM in

Marketing

2012 Stevie International Business

Awards – CRM-Marketing

Department of the Year (Gold Stevie

Award)

Case Study: Jeffrey K. Pinto “Project

Management Achieving Competitive

Advantage”, 2012, Pearson Press

London

2013 Gartner CRM Excellence –

Customer Analytics Exellence Award

2014 Gartner CRM Excellence –

Sales Effectiveness Exellence

Award

14

CRM Division

CRM Geocoding

15

CRM Division

Exploring New Aspect of Data

Ancient Times vs Modern Times

• They don’t know where they are going

• They don’t need any services

• They just need food and location to live

• They know where they are going

• They need lots of services

• They just need right offer at the right time and

at the right location

16

CRM Division

What is Geocoding ?

Geocoding is a process about converting a

textual adress data to numerical geographical

data as latitude and longitude.

Geocoding

Ex: “Sabancı Center, İstanbul, Türkiye” is

geocoded and resolve geographically as

41,085416(lat) – 29,009185(lon)

17

CRM Division

Geocode Data Integration Points

• Navteq

• Revenue Administration

• Interbank Card Center

• Turkey Statistics Instutition

• Banks Association of Turkey

• Real Estate Agencies

• Social Media

Branch

Akbank Adress Data Set

Akbank Internal Data Source

ATM-BTM

Customer POS

Real Time Data

Data

Warehouse

External Data Source

Coordinate

(X,Y) Data

Mapping

Infrastructure

Geographic

Analitycs Maps.akbank End User Tool

Optimization Route,Service,

Agenda

ATOM Internal CRM

Application

Web/Mobile

Applications

18

CRM Division

Geographic Analytics

Data Analyzing & Visualization Scores

• Geograhic database created with all adress data

in our system

• Customer adresses(55mio)

• Teller machine adresses (4k)

• Branch adresses (1.1k)

• POS machine adresses (648k)

• Data enrichement with 3th party sources

• POI (Navteq-980k)

• Rental and Sale Prices (GIB&Reidin-Whole

country)

• Social Data(Whole country)

• Demographic Data(TUIK-Whole country)

• Financial Benchmark Data(TBB&BKM-whole

country)

1 2 3

• ArcGIS:

• Visualization

• Prediction

• SAS:

• Data Preparation

• Segmentation

• Prediction

• Qlikview:

• Visualization and Reporting

• Geographic Scores

• Customer Living Area Metrics

• Density Index

• Gravity Index

• Street Segmentation

• District Classification

• Geographic Potential Calculation

19

Geographic

Analitycs Maps.akbank Optimization ATOM

Web/Mobile

Applications

CRM Division

Maps.Akbank

Maps.akbank is a geographical web based reporting and analytical tool. Aim is to create new strategies for the field.

Main functions:

• Basic analysis based on historical customer and location data from databases.

• Service (ATMs and Branches) network analysis

• Opening/closing branch and ATM simulations

• Optimal route calculations

• External data can be imported, geocoded and analyzed.

• Exporting maps and data

This tool provides instant visualized reports on map for marketing, sales department and strategy divisions.

20

Geographic

Analitycs Maps.akbank Optimization ATOM

Web/Mobile

Applications

CRM Division

Optimization

Route Service

Route optimization

• Distributing checks and bill payables to right branch

• Forwarding customers from an disorderd ATM to

closest one

• Planning Customer Visitations in a correct order and

timeline

1 2

Service Improvement

• Branch and ATM Locations

• Finding best place for new ones

• Hinterland analysis and identifying staff

requirements

• Customer Branch Assignments

• Deciding the branch for better service for new

customers

• Creating inactive customer pools and matching

with branches due to their living-area

21

Geographic

Analitycs Maps.akbank Optimization ATOM

Web/Mobile

Applications

CRM Division

ATOM

• ATOM is our bank’s CRM application for field users. Our region and branch staff use it for everyday sales activities and

getting know their customer and portfolios better.

• There are many functions such as Customer 360 view, product history/usage/profitabilty, contact history, offer summary,

benchmarks, NBA, Portfolio summary and details, querying portfolios, portfolio performances

• With geocode engagement, portfolios can be filtered and results are visualized on maps with shortest route suggestions.

Finding Target Group

Visualizing on Map

Best Route for Visiting

22

Geographic

Analitycs Maps.akbank Optimization ATOM

Web/Mobile

Applications

CRM Division

Web-Mobile Applications

www.akbank.com Mobile Banking Application Mobile Internal Application

Searching branch and ATM in a

specific location and visualize it on the

map

1 2 3

Finding the closest branch or ATM

due to user’s current location

Monitoring customers on the map

by their activities, segment,

branch, region, portfolio manager

23

Geographic

Analitycs Maps.akbank Optimization ATOM

Web/Mobile

Applications

CRM Division

Geocoding Roadmap

• Hinterland and Customer Coverage

Optimization

• Web and Mobile Branch Integration

• Mobile Application Integration

• CRM Application Integration

• New Customer Acquisition Actions

• POS and Cash Carrier Tracing Systems

• Maps.akbank

• Branch and ATM Alocation

• Customer Branch Assignments

• Customer spending hinterland

Analysis

• Geographic Campaign

• Spatial Event Base Actions

• 3 New Mobile Applications

• 3-D Mapping

• New Branch Service Modelling

• More Analytic Indexs

2017+

We improve our systems and infrastructure to make geographic analytics better and faster.

2016

• Geographic Datamart

• 3. Party Data Integration

• Creating An Geo Analysis Enviroment

• Improving Our Service Modelling Network

• Branch& ATM Location

• Identifying Staff Requirements due to

Hinterland Potential

2014 - 2015

- 2013

Realtime visualization

Realtime analytics

For every single customer

Our

Geocoding

Vision

24

Thank You

aren.haddeler@akbank.com

Aren HADDELER

Vice President

Back Up

27

Turkey presents a challenging and exciting environment for banking

Scale advantage (US$ 800 bio, 77.7 mio

population)

Rising prosperity (GDP/Capita tripled in less

than a decade)

Rising wealth of middle class

Young population, 50% under the age of 31

46,3 mio broadband internet subscribers

58,2 mio credit card users in 2015, up from

17 million in 2002

73,2 mio mobile phone subscribers

22,7 mio mobile internet users

181,1 mio airline passengers

3,571

4,587

5,856

7,117 7,727

9,310

10,382

8,624

10,112 10,584 10,646

10,975 10,530

-

2,000

4,000

6,000

8,000

10,000

12,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GDP Per Capita (US$)

Male

Female

Age Group

yenilendi

28

Significant marketshare

The market capitalization is 10 bn USD*

* As of May 2016

ISE 100

Market Cap.

%93.8

Share of Akbank’s Market Cap.

Akbank

%6.2

yenilendi