Effective managementNEW APPLICATIONS FOR EXPENSE PROCESSES HAVE BEEN ADDED TO THE CORPORATE EXPENSE MANAGEMENT MODULE DESIGNED TO PROVIDE EFFECTIVE MANAGEMENT AND COST ADVANTAGES FOR THE BANK’S EXPENSE ITEMS.

In 2017, Ziraat Bank continued on its journey of change and development by adding new chapters to its success story in different fields, and creating value for both our country and the world.

Ziraat Bank, which integrates change and development projects into corporate business processes and moves forward with the support of all of its personnel, has implemented a wide array of innovations which bring ease to the lives of its customers and employees.

In 2017, the Bank focused on renewing its services through its branches, non-branch channels, financial companies, international subsidiary banks and branches abroad in line with the changing needs of its customers and the flexibility provided by new technology.

Ziraat Bank’s road map in 2017 was shaped in line with the main strategic targets and the projects were realized with the participation of all employees.

1. Customer Oriented Strong Balance Sheet: While the Bank’s balance sheet has become more focused on customers and the real sector, expense items have been optimized with the use of the latest technology in line with efficiency principles.
Within the scope of activities carried out by Ziraat Bank in order to diversify its resources, a syndication loan, which was extended in USD and EUR terms in 2016, was renewed in 2017 at a total amount of USD 1,050 million, including denominations of USD 278 million and EUR 706.5 million. In addition, within the scope of the resource management strategy to extend debt maturities, USD 600 million of Eurobonds with a maturity of 5 years were issued.

Another loan agreement with the European Investment Bank (EIB) was signed for EUR 100 million for the financing of SMEs in 2017.
The Bank, which has reached an agreement with the China Development Bank, for a cost-effective loan of USD 600 million and a three-year term, signed a contract for the first USD 200 million tranche of the loan. The second tranche, consisting of the remaining USD 400 million, is planned to be used in the first quarter of 2018.

Ongoing infrastructure studies aimed at managing the credit risk based on the Basel 3 Internal Rating (IRB) approach are targeted to be completed in the second half of 2018.

New applications for expense processes have been added to the corporate expense management module designed to provide effective management and cost advantages for the bank’s expense items.

2. A Customer Oriented Business Model: Ziraat Finance Group focuses on establishing sustainable relationships that create value in a service model that aims to ease the lives of its customers.
In 2017, Ziraat Bank continued to develop customized products and services to meet the financial needs of its customers and to reshape its service channels in line with the needs of its customers. In 2017, new products, services and processes specific to each customer segment were developed with the aim of understanding the needs of customers and to produce solutions.

A customer specific automatic pricing structure based on risk grade was established for Ziraat customers in the corporate segment. Projects to develop cash management products also continued in 2017, and the Fuel Collection System was introduced.

The “Entrepreneur Value Loan” was introduced to provide SME’s with operating capital financing on affordable terms. In addition, under the protocol signed with KOSGEB, with the “KOSGEB Emergency Support Loan”, which extends financial support to businesses affected by natural disasters in our country, the valuable contribution that SMEs bring to the economy was supported.

In order to modernize agricultural enterprises, increase productivity and profitability and to contribute to sustainable development in rural areas, financial support was offered to customers under the IPARD Program under the management of the Agricultural and Rural Development Support Institution (TKDK).

2.5 tons of goldTHE “GOLD BOND AND GOLD BASED LEASE CERTIFICATE” PRODUCTS WERE OFFERED TO CUSTOMERS THROUGH ZIRAAT BANK. A TOTAL OF 2.5 TONS OF GOLD WAS COLLECTED WITH THE ISSUANCE AIMED AT BRINGING IDLE GOLD KEPT ‘UNDER THE MATTRESS’ INTO THE NATIONAL ECONOMY.

The “PPS for the Youth”, to be offered to young customers aged between 18 and 25 and the “Zümrüt PPS Plan”, for employees within the scope of the Private Pension Automated Participation System (OPS) products were developed within Ziraat Hayat ve Emeklilik A.Ş., a subsidiary of the Bank, to help raise awareness of saving and increase saving among individual customers.

The “Gold Bond and Gold Based Lease Certificate” products, issued for the first time by the Undersecretariat of the Treasury, were offered to customers through Ziraat Bank. A total of 2.5 tons of gold was collected with the issuance aimed at bringing idle gold kept ‘under the mattress’ into the national economy.

Investments in non-branch channels continued to enable customers to process transactions over the digital channels quickly and easily. In this context, in order to provide a common experience across all non-branch channels, renovation of the channel front faces was carried out. The renewal of the corporate Internet branch and corporate mobile branch for corporate customers was completed. In addition, individual and institutional transaction sets related to mobile banking were developed and brought into service for customers.

The live chat application was implemented to resolve the problems frequently encountered by Ziraat Bank customers using the internet branch. Work on Cash Withdrawal/Deposit transactions with a QR code from Ziraat ATMs was completed, allowing money to be withdrawn / deposited safely and quickly by using the mobile application on smartphones, without the need for any card.

Important investments were carried out in the Ziraat Bank Call Center in 2017 in order to increase customer satisfaction and the quality of service.

In 2017, vehicles sold by Ziraat Bank were accessible through the Bank’s website and offered for sale through the e-procurement method.

Important investments were carried out in the Ziraat Bank Call Center in 2017 in order to increase customer satisfaction and the quality of service.

3. Process Perfection: Ziraat Bank continues to improve its processes in order to bring ease to lives of its customers and employees, and to generate value through its productivity oriented business model.
Aware of the importance of the resources it uses for our country and our world, Ziraat Bank is also aware of that the savings obtained from every source that is spent to generate value will be transferred to future generations. The Bank continues to integrate the principles of sustainability into its business processes and to participate in environmental and people-focused projects. In this context, the 2016 Sustainability Report, published in 2017, was prepared using Miniature Art.

Using a model focused on productivity and continuous improvement in business processes, Ziraat Bank continued its work on process improvement and centralization of branch operational processes in 2017. This work, which has been carried out with the same discipline for 5 years, has saved 4,500 man hours of work and allowed employees to be directed to jobs that generate higher added value. A large number of operations are centralized in accordance with the work on the centralization of operational transactions.

In that context;

• Transactions that were carried out by the branches have been taken to the head office by providing integration within the scope of the protocol signed with the General Directorate of the Land Registry and Cadaster for mortgage establishment and registration operations.
• Confirmation transactions such as Letters of Guarantee / Reference Letters / Letters of Guarantee Maturity Extension have been centralized.
• Work on the centralization of loan disbursement was completed in 2017 and corporate cash loans started to be disbursed from the head office.
• Certain operational transactions carried out by the subsidiaries started to be carried out by the operations center.
• A transition to barcode document production infrastructure was achieved, paving the way for document optimization and the creation of a central archive infrastructure.
• Integration between the Bank and the Electronic Public Information Management System (KAYSIS) was achieved.
• Integration work related to the E-Collection project, which is carried out jointly by the Revenue Administration and TÜBİTAK, got underway.

Work initiated for the renewal of the Bank’s data center in 2014 was completed in 2017 and all transactions could be carried out without interruption. The Data Centre received the “Uptime Tier III Facility” and “Uptime Tier III Design” certificates in view of its ability to increase the server access capacity by up to 10 times.

4. Modern Infrastructure Systems: Ziraat Bank is continuing its investments in modern infrastructure to make its processes more technology intensive.
Ziraat Bank, which has been renewing its service model and internal processes with the intensive use of technology, continued to carry out its major technological investments in 2017.

In order to develop modern and agile business processes and to create a digital workforce, studies were initiated to integrate Robotic Process Automation (RPA) technology, which is defined as software that imitates people and carries out routine business processes and is capable of making simple decisions, into the Bank’s processes.

Work initiated for the renewal of the Bank’s data center in 2014 was completed in 2017 and all transactions could be carried out without interruption. The Data Centre received the “Uptime Tier III Facility” and “Uptime Tier III Design” certificates in view of its ability to increase the server access capacity by up to 10 times, its fire, security and seismic monitoring systems, its 100% air to air natural cooling systems and its minimum energy consumption.

RPAIN ORDER TO DEVELOP MODERN AND AGILE BUSINESS PROCESSES AND TO CREATE A DIGITAL WORKFORCE, STUDIES WERE INITIATED TO INTEGRATE ROBOTIC PROCESS AUTOMATION (RPA) TECHNOLOGY INTO THE BANK’S PROCESSES.

Work to renew banking software in 2016 continued with the same enthusiasm and at an increasing pace in 2017. In the Ziraat Finance Application, which is integrated with the existing Fin@rt application, users are unaware that they have entered a separate application and perform a significant portion of their work time with the redesigned screens and renewed infrastructure. With the new banking software planned to be completed in 2019, work equivalent to 550 persons is planned to be automated.

Cyber security investments were also an important agenda item in 2017. In this context, work continues on detection and prevention of new generation malware, the establishment of network threat monitoring systems, and ensuring the security of mobile application. Necessary hardware and software supplies have been provided in order to detect all threats and to intervene within predetermined processes, and to ensure continuous monitoring.

Work was completed on the Corporate Architecture Governance Project, which was initiated to ensure the effective creation of business, application architectures and technological infrastructure integration under the roof of corporate architecture. A meta-model was created to align business architecture and IT architecture in line with business strategies and to be used as a decision-supporting tool in investment processes, and corporate architectural processes were put into practice in business units and technology companies.

Ziraat Bank contributes to both the sector and its own development through its projects that make a difference and bring innovation in many different areas.

5. A developing Organization: We continue to evolve with our most valuable asset - our employees - to as we increase our service quality
Work got underway on the performance system for general directorate units in 2017 in order to promote an efficiency-oriented work approach in general directorate units, as in the field. In this context, the Bank will evaluate projects that will facilitate the operation of the units, innovative solutions and quality-focused work in the existing business processes.

Ziraat Bank continues to work on establishing permanent learning-oriented business environments in order to prepare its employees for the banking of the future. In 2017, the integration of the Bank’s subsidiaries into the Training Management System and work to execute all the training management from the head office was completed. In addition, the Bank also applied the “dramatization” method of education, which makes learning enjoyable and permanent.

Ideal employerBASED ON THE RESULTS OF “IDEAL EMPLOYER SURVEY 2017” CONDUCTED BY THE GLOBAL RESEARCH COMPANY, UNIVERSUM AND HBR (HARVARD BUSINESS REVIEW), ZIRAAT BANK WAS ONCE AGAIN RANKED AMONG THE BEST COMPANIES TO WORK IN.

Ziraat Bank contributes to both the sector and its own development through its projects that make a difference and bring innovation in many different areas. The Bank continued to increase its corporate value with a clutch of international awards in 2017, as it has every year.

In the “Financial Innovation Awards 2017” awards organized by the London Institute of Banking and Finance, in which over 1,000 projects compete worldwide, Ziraat Bank received the “Best Bank” Award in the “Innovative Data Usage and Applications” category with its Branch Location Analysis Application which produces interdisciplinary information using statistical and geographic information systems in the banking sector.

Ziraat Bank’s operations center won the “Best Operations Centre Innovation Project in Turkey 2017” award in the “Global Banking & Finance Awards 2017”.

Based on the results of “Ideal Employer Survey 2017” conducted by the global research company, Universum and HBR (Harvard Business Review), Ziraat Bank was once again ranked among the best companies to work in. In addition, in the “Lovemarks of Turkey 2017” survey, the Bank became Turkey’s most popular bank brand as “the first bank that comes to mind” for one in every four respondents.

At Stevie Awards, the world’s most prestigious international Business Awards program, Ziraat Bank received 5 awards in the categories of “Corporate Communication Department of the Year”, “Sponsorship Campaign of the Year”, “Public Relations-Video”, “Best Annual Report” and “Best Internal Motivation Event”.

Studies are underway to build the “Ziraat Finance Group” in order to provide integrated financial solutions to customers receiving services from the Ziraat brand and to design business processes in line with the common objectives of the Group.

6. Ziraat Finance Group: In order to meet the financial needs of Ziraat customers as a whole, we continue to generate integrated solutions with our subsidiaries, our branches abroad and our financial companies.
Studies are underway to build the “Ziraat Finance Group” in order to provide integrated financial solutions to customers receiving services from the Ziraat brand and to design business processes in line with the common objectives of the Group. In this context, the centralization of operations with all partner companies and work on integrated product designs stood out as an important agenda item in 2017.

The integration and execution of operational processes from a single location with the Ziraat Sigorta, Ziraat Hayat ve Emeklilik, and Ziraat Investment companies was completed and opening and updates for TOKİ housing accounts, workplace accounts, DASK insurance policies and Ziraat Investment accounts started to be carried out at the Bank’s operations center.

In line with the principles of its corporate image, the Ziraat Finance Group maintains its efforts to revamp the corporate websites for its domestic and foreign subsidiaries, to ensure customers receive a common experience.

Recruitment processes for subsidiary companies have been centralized and the process has started to be carried out centrally. In 2017, a total of 255 new employees joined the Group and the standardization efforts for the career and pay management principles of Group companies have been completed.

GeorgiaIN 2017, THE GEORGIA BRANCH WAS RESTRUCTURED INTO A NEW BANK AND JSC ZIRAAT BANK GEORGIA WAS ESTABLISHED.

In order to ensure that all foreign employees learn Turkish, which is the common communication language at the Ziraat Finance Group, international language training practices and Turkish lessons have been provided.

Within the scope of the ongoing technological investments in all subsidiaries and branches abroad, the renewal of banking software is carried out by using local solutions under the supervision of Ziraat Teknoloji.

In 2017, the Georgia branch was restructured into a new bank and JSC Ziraat Bank Georgia was established. The subsidiary bank in Uzbekistan, in which Ziraat Bank’s share in the capital increased to 100%, started activities as Ziraat Bank Uzbekistan JSC from 2018.

Work on becoming a 3% shareholder in the Product Specialized Commodity Exchange was completed, and the exchange is planned to be established in 2018.