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Akbank Goes Mobile

The result? In 2006, approximately fifty-three thousand people received loans through Akbank’s mobile phone credit service.

Moreover, here’s even more impressive growth:

  • Since 2005, Akbank’s retail customer base has grown to more than 5.4 million retail customers.
  • In 2007, the annual report noted that 2.35 million customers per month now use Akbank’s mobile channel, and 61 percent of the bank’s transactions are carried out through these channels.
  • Akbank has seven hundred thousand Internet branch customers.
  • Customers carry out 32 percent of the bank’s transactions on the Internet.
  • Akbank has about 1,615 ATMs — 10 percent of all ATMs in the country.
  • Approximately 1.9 million people a month use Akbank ATMs.

Akbank is demonstrating the leapfrog advantage of established emerging market retail banks. By investing early and strategically, Akbank now has a head start over local and international competitors. And by integrating decision management technology into its IT infrastructure, it has the databases to capture all the internal and external data on a given customer. (In Turkey, the government-supported credit bureau was established in 2002.) Akbank’s credit management system, which includes behavior scoring and adaptive control technology, covers the entire credit life cycle, including prospecting for customers, underwriting loans, and managing customer accounts. The system runs through 17 different paths, 620 rules, 390 strategies, 330 scenarios, and 5,327 steps.

Decision management is also critical to Akbank’s strategy of aggressive but controlled market share growth, as it expands into new middle-income and “unbanked” segments. Akbank will need to be agile and vigilant in controlling delinquency and fraud. Akbank’s creative use of electronic channels has put it in a strong position to realize these additional goals:

  • To take advantage of data on prospective customers and current customers for cross-selling products
  • To increase the efficiency and effectiveness of marketing initiatives
  • To increase profit per customer

In 2006, CitiGroup bought a 20 percent stake in Akbank for $3.1 billion. CitiGroup’s global brand and technology is now combined powerfully with Akbank’s knowledge of the market. The collaboration is specifically about growing the retail bank, joint investments in technology, and managerial sharing. Finally, although Akbank currently serves only the Turkish market, expansion into Europe is on its radar.

— Larry Rosenberger and John Nash, with Ann Graham

Reprinted by permission of the publisher, Jossey-Bass, an imprint of John Wiley & Sons Inc., from The Deciding Factor: The Power of Analytics to Make Every Decision a Winner by Larry Rosenberger and John Nash, with Ann Graham. Copyright (c) 2009 by Larry Rosenberger and John Nash. All rights reserved.

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This Reviewer

  1. Edward Landry is a partner at Booz & Company based in New York who specializes in strategy development and sales and marketing effectiveness for consumer packaged goods and health-care manufacturers. He is coauthor, with Leslie H. Moeller, of The Four Pillars of Profit-Driven Marketing: How to Maximize Creativity, Accountability, and ROI (McGraw-Hill, 2009).

This Excerpt

  1. The Deciding Factor: The Power of Analytics to Make Every Decision a Winner (Jossey-Bass, 2009) by Larry Rosenberger and John Nash, with Ann Graham
  2. Larry Rosenberger was named the Fair Isaac Corporation’s first research fellow in 2007. From 1999 to 2007, he led the company’s research unit, and from 1991 to 1999, he served as president and CEO.
  3. John Nash is the Fair Isaac Corporation’s vice president of corporate strategy. Previously, he served as vice president of product strategy for Seisint Inc. and founded the customer insight practice at Accenture.
  4. Ann Graham is the editorial director of the Conscious Capitalism Institute at Bentley University in Waltham, Mass., and a cofounder of ANDVantage LLC, a strategy consulting firm that focuses on the interdependence of financial and social sustainability. She is a contributing editor and former deputy editor of strategy+business.
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