ING Bank Turkey Increases Sales, Customers, and Market Share with TIBCO
Flexible new processes bring cost savings and a differentiating customer experience
ING Bank Turkey wanted to improve customer service and market share. “We wanted to make banking accessible through a mobile device, the Internet, or a branch,” says Chief Operating Officer Gorkem Koseoglu. “We wanted to empower customers, make effective use of what we knew about them and the market, and use data and analytics to give them options so they could make their own financial decisions.
“There was a lack of transparency into our service levels, into the efficiency of our processes. Most of our systems were not user-friendly for customers or employees, and we needed to streamline processes, decentralize operations, and increase service and sales. We also wanted to differentiate our distribution with new third-party channels.”
The bank started looking for a business process management (BPM) solution to streamline and digitalize its processes. "We have a global agreement for all TIBCO products, and we started with a pilot of TIBCO ActiveMatrix® BPM, which led to a great engagement," says Koseoglu. "Now we have nine processes running on ActiveMatrix BPM, and we keep expanding. We now have modern workflow processes and sales activities across multiple locations and distribution channels. We’re integrating all these diverse systems, which is easy to manage with TIBCO advanced monitoring capabilities."
Improved Customer Experience, Differentiating Services
“Now, whenever we have a new product or process change, we apply it across all channels,” says Koseoglu. “Customers can do all their banking using mobile applications. They can apply for a loan and get approved through the app without any need for documentation or signatures. Commercial banking clients can access loans on their devices or online without needing to communicate with the bank. They can make loan payments through these channels. This differentiates us from other banks.
“Within three years, our net promoter score improved by 17 points. We moved from number six in the sector to number one.”
Reduced Cycle Times
“Our cycle times are much shorter,” says Koseoglu. “Before, a consumer loan took at least 30 minutes from application to disbursement. Now it’s close to five minutes. When a customer applies for a loan, there’s an automatic score card working in
the background, so we can approve the loan, and the customer can use their ATM card to access the money within five minutes. This service and speed also makes us unique. We also reduced time for our distraint order process by 60%, from 29 minutes to 14.”
More Distribution Channels, Customers, and Market Share
“Thanks to ActiveMatrix BPM, about two-thirds of all consumer loans are coming from non-branch channels,” says Mr. Koseoglu. “By creating partnerships, we are selling loans through grocery stores, electronic shops, post offices, and the biggest airlines. There’s a big impact in our reach, and our sales almost doubled.
To create these new channel partnerships, ING Bank Turkey had to move quickly. “We were chosen over other banks by Turkey’s largest grocery chain because TIBCO’s BPM platform let us meet requirements and create new processes within weeks compared to months needed by other banks,” says Koseoglu.
“Active customers increased by 40% since 2012. We added debit cards for more than a million new customers within two years, and we increased market share in the retailsegment by almost 70% in the past two years, moving up from three to five percent.”
Cost Savings and Increased Productivity
“We near-shored back-office operations, and now many activities are outside Istanbul, which gives us a cost advantage,” says Mr. Koseoglu. “We can manage processes in Istanbul and the remote location in a seamless way. We’re the only bank in Turkey that can move parts of back office activity to other locations.
“Cost and service pressures are very important, and we needed to make best use of people and skills in real time based on demand. I can move people from one task to another or move tasks from one location to another. We reassigned about 70 employees, about 20% of the back office, to sales-related activities. And the number of transactions per employee has increased by 38%, so now we can process almost one-third more transactions.”
“We want to make all customer-facing processes BPM-enabled,” says Koseoglu. “We are adding new mobile functions for different customer segments, and new partners including telecoms and transportation companies because we can seamlessly integrate their systems and offer financial solutions to their customers so they also become ours. Our objective is to keep expanding.”