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VAKIFBANK
ANNUAL REPORT 2014
45
PRIVATE BANKING
VakıfBank Private Banking aims to increase customer
profitability by acquiring new customers, fostering loyalty,
reducing sensitivity to interest, and raising the share of
non-interest income through the discretionary management
of customer assets according to risk profiles and return
expectations of customers.
Private banking activities have been carried out in the Turkish
banking sector since the end of the 1990s, and competition
has broadly increased over the past 10 years. According to
October 2014 data published by the Banking Regulation and
Supervision Authority (BRSA), those depositors who have
foreign currency deposit accounts and savings accounts worth
more than TL 250,000 make up 0.73% of the total number
of depositors, which stands at 407,141. These high net worth
depositors account for 51.39% of total savings deposits.
The number of depositors who have foreign currency deposit
accounts and savings accounts worth more than TL 1 million
grew from 34,921 at year-end 2010 to 76,103 in December
2014.
The volume of private banking in Turkey, which stands at
more than US$ 120 billion, is expected to continue growing.
VakıfBank Private Banking provides customized financial
solutions for high net worth customers who have TL 300,000
in total assets through Private Banking Portfolio Directors,
who are specialized in their respective fields. In addition
to the standard banking products, alternative investment
options suitable for the needs and expectations of Private
Banking customers are offered at special service points that
are designed by taking customer comfort into consideration.
Having started its branch network in 2011, VakıfBank Private
Banking provides services for customers at seven branches
as of 2014. The Bank plans to increase the number of
branches and aims to provide a larger number of customers
with VakıfBank Private Banking’s exclusive services in 2015.
Building its growth strategies on new customer acquisition
and customer satisfaction since its establishment, VakıfBank
Private Banking reached total assets under management
1.6
TL BILLION
VakıfBank Private
Banking’s assets under
management (AUM)
grew to TL 1.6 billion as
of year-end 2014.
(AUM) of TL 1.6 billion as of year-end 2014. Some 98% of
the total AUM came from new customers. At the same time,
the Bank’s exceptional service concept formed the basis of
long-term relationships with its customers. VakıfBank Private
Banking is expected to grow with increasing momentum in
2015.
While providing customers with core banking products and
services with tailor-made pricing alternatives, VakıfBank
Private Banking also continues to expand its product portfolio
with private investment and loan products in line with market
dynamics and the expectations of its target customers.
VakıfBank developed the “Enjoyable Retirement” product
packages, which include Individual and Group Retirement
plans for private banking customers, to compete effectively
with other banks in the private banking segment, to reach
customers by offering loan products tailored to their interests,
and to increase profitability by delivering high-quality services
alongside an extensive product range meeting customer
expectations. Aiming to stand by its customers at every
moment of their lives, VakıfBank Private Banking launched
the “VIP Health Insurance” and “Emergency Health Insurance”
products with extensive coverage. VakıfBank Private Banking
will continue to offer and diversify its investment, loan and
insurance products and services.
There is intensive competition in the private banking segment
where many banks offer special events and activities aimed
at increasing customer loyalty in addition to customized
products and services developed exclusively for private
banking customers. VakıfBank Private Banking differentiates
by offering non-financial in addition to financial benefits and
specialized events and boutique activities designed in line
with customers’ interests. Based on customers’ interests,
VakıfBank organized various art and history activities, laying
the foundations for long-term relationships with existing and
potential customers.
VakıfBank Private Banking plans to continue increasing its
market share with the power of the VakıfBank name, which
stands out in the industry with its strength and reliability,
while making a difference in the private banking segment.