VKF_FRAE_2017

PART I: INTRODUCTION 62 VakıfBank Annual Report 2017 In 2017, the OGM DCS Card developed by VakıfBank and entitled the “Best Marketing Campaign of the Year - Financial Card” award at the International Business Awards (Stevie Awards), one of the most prestigious award organizations of the International Business Community. REVIEW OF OPERATIONS IN 2017 VakıfBank keeps a close watch on the technological advances in the field of cash management by releasing products and services in accordance with its goal of becoming the strength by customers and stakeholders. VakıfBank manages its retail and commercial customer relations in line with the principles of loyalty and customer focus, stands by its customers under any condition, and designs particular solutions for them. In 2018, as in every year, it shall expand its customer base further with new products shaping the market, and further strengthen its partnerships with existing customers. VakıfBank completely upgraded the IT infrastructure of the Direct Debit System (DDS), which is one of the most widespread products in supply chain finance; the system has come to acquire a functional structure in response to customer needs. Since the DDS product has a special place in commercial and corporate segment, it continued being marketed in an active manner, resulting in a 29% increase in parent company acquisitions and a 42% increase in dealer/customer acquisitions in 2017. The Dealer Collection System (DCS), offered by the Bank to customers as an alternative supply chain financing product, continued to grow at an accelerating pace in 2017 as the number of customers registered in the system jumped 47% while the volume of collections soared 67%. In 2017, with the inclusion of the Diamond Card in the scope of Dealer Collection System (DCS), the Bank started offering its customers the very first DCS service in installments. VakıfBank’s OGM (General Directorate of Forestry) DCS Card is the most popular DCS service in the market, and the Bank dominates the market share as the only bank active in this area. In 2017, VakıfBank obtained the “Best Marketing Campaign of the Year - Financial Card” award at the International Business Awards (Stevie Awards), one of the most prestigious award organizations of the international business community. Another award-winning product designed by VakıfBank is Gümkart, which continued being used at an increasing rate among customers paying customs duties. As such, VakıfBank mediated in the collection of 45% of total customs duties in Turkey in 2017. Furthermore, there was a 51% increase year on year in the number of customers who employ the “Customs Duty Payment by SMS” service, offered to customers as an alternative payment method. In 2017, new agreements and infrastructure upgrades were realized within the scope of corporate collections, and the number of institutions whose collections are mediated by VakıfBank increased 14%. VakıfBank increased its market share in Social Security Institution (SGK) and tax collections, which are the two most important categories in corporate collections, with year-on-year increases of 25% and 29% respectively. CASH MANAGEMENT An award-winning product designed by VakıfBank is Gümkart, which continued being used at an increasing rate among customers paying customs duties. As such, VakıfBank mediated in the collection of 45% of total Turkish custom duties in 2017.