SME Banking Conference

Devrim Ziya TAVİL Director

SME Banking Segment Management and Business Development

Jan’12, Beirut

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AGENDA

1. Turkish Economy & Banking Sector

2. Why to Provide Non-Financial Services & Products

3. How to Provide Non-Financial Services & Products

4. Becoming A Success Story

Turkish Economy & Banking Sector

Turkey, Turkish Economy and Banking Sector

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Number of Banks

Number of Employees

Total Net Profit

Number of Branches

Total Assets

Total Loans

48

181,277

USD 7,671 mn

9,841

USD 643,004 mn

USD 353,835 mn

Banking Sector in Turkey (Sept.’11)

Why to Provide Non-Financial Services & Products

SMEs in Turkey

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Turkish Ministry of Industry & Trade Turkish Statistical Institute 2006

SME Share in Employment 79%

SME Share in Production 58%

Number of small sized firms increases but medium-sized firms

cannot succeed to reach the big-sized firms group

The average life of a company is

11 years ! 80% of newly established firms are closed in

5 years ! Most of the rest are staying small !

Long Term Loans Low Interest Rates Easy Colleteral

Access to Finance?

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What They Really Need Are...

Institutionalization, Growing and Developing

Close Attention & Direction for Continue of

Business

Support for Start-up

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Financial Support

New Product Launch

New Customer

Performing R&D

Qualified Employee

Foreign Trade

Secured Customer

Cost Efficiency

Close & Personal

Connection

Large Orders & Small

Purchases

Incentives & Support

How to Provide Non-Financial Products & Services

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KNOWLEGDE

SMEs

TECHNOLOGY

R&D

Changes in SMEs’ demands enhance

new offers and solutions

“Bank – customer relation” is no longer purely “commercial”

Differentiation

BENEFITS for the Bank

Enhancing customer loyalty Attracting our competitors’ customers by differentiation Gaining ‘prestige’ by supporting the SME Training customers, reducing risk

TEB SME Academy aims to increase the competitive powers of SMEs

in local and global markets by means of interactive workshops for “strategy, institutionalisation,

marketing and growth scenarios” with the content :

Opening Speeches

TEB SME Banking Approach

Lectures by PhDs

Interactive Workshops

TEB SME Academy : A Consultive Solution for SMEs

BENEFITS for SMEs

Increase profitability Enhance professional

management Increase market share

51 Event 32 Cities

11,000 Businessmen Since 2005

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Future Strategy Conferences

4 Sectors (Automotive-Jewelry Tourism-Agriculture)

TEB

Prominent figures of the cities/countries/sectors aim to

bring out “strategies” in order to shape their futures.

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20,000 daily / 4.5 mn

annual visitors 100,000

members

www.tebkobitv.com aims to easen the

way to access

information about business

More than 5,000

videos

TEB SME TV

Members enjoy practical solutions for their daily business problems.

TEBLiveFinance

SME TV Experts

SMELingo

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Strategy and

Growth Management

Training for 5 Months

Certified by

TOBB University

4 Main Expertise

3 Main

Consultancy Areas

Training for 24 Months

TEB SME Consultants

SME RMs will have 360° approach when assessing SMEs and be able to analyse & suggest about

o firm strategy, long term projects o production o marketing & sales o HR

TEB SME Consultants is a management consultancy service for SMEs where

SME RMs offer diversified solutions for SMEs as a result of a 2-year training

program.

SME Guides SME Experts SME

Consultants

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SME Club

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A platform bridging SMEs and corporate firms

at the point of purchase with remarkable discounts.

Cost management support for SMEs and attractive discounts up to 50% from the most reputable companies

An SME can save EUR15,000 average/year.

Corporate firms get the advantage of selling to SMEs.

Loyalty club for TEB SME clients

150$ Yearly membership fee is an additional non-interest income source for TEB.

SME Support Line

444 0 667 A free-of-charge line that provides

24/7 information and assistance services to TEB SME Clients

150-200 calls /month

Information Services

Line for Legislation on Foreign Trade

Line for Customs Legislation

Line for EU Funds

Line forTax and Audit

Line for Corporate Social Responsibility

Line for Quality

Line for Gold

Line for Agriculture

Line for Employers

Line for National & International fairs

Line for Trainings for SMEs

Line for Leasing

Line for Factoring

Line for Assurance

Assistance Services

Translation Services

International Travel Organisations

Office Management Assistant

Supplying Temporary Office Materials (Laptop, projection machine, etc.)

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AFD Loans : A Win-Win Project

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SMEs – battle for growth

CSR Project

Corporate Social Responsibility (CSR) is a rising concept

in global markets, especially for EU and US.

AFD CSR Project includes a 4-year action plan of

CSR activities and policies

which is embedded by a long term credit facility

up-to-8 years for SMEs.

CSR Awareness Trainings

CSR Questionnaires

CSR e-learning for TEB staff

CSR Conferences

CSR Check-Ups

EUR 40mn Loan

CSR Contests

Becoming A Success Story

7 SME ACADEMY IN ALGERIA

PILOT STUDIES IN BELGIUM AND ITALY &

WILL BE LAUNCHED IN MID-YEAR

Are They Applicable in Other Markets?

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IFC Case Study

Developing an SME Banking Strategy & Value Proposition to SMEs

Designing and Roling Out New Non-Financial Services

(TEB SME Academy, TEB SME Consultants etc)

Measuring Return on Investment & Benefits to TEB and SME Clients

Conclusion and Looking Ahead

IFC has adopted TEB as a success story for both bank and clients while studying over the non-financial services provided to SME clients.

The report with the following brief abstract will published in January 2012 and press launch event will be held afterwards.

Thank You

Devrim Ziya TAVİL Jan’12, Beirut