We Develop Products and Services That Reduce Credit Risk for the Financial and Real Sectors

KKB ANNUAL REPORT 2015 WE DEVELOP PRODUCTS AND SERVICES THAT REDUCE CREDIT RISK FOR THE FINANCIAL AND REAL SECTORS. WE PROVIDE A MORE SECURE FUTURE FOR TURKEY. WHO ARE WE? 60 Letter of Guarantee Status Inquiry (LGSI) 03 About KKB 60 Trade Registry Sharing System (TRSS) 04 Shareholding Structure 61 Collection Scores 05 Vision, Mission and Strategies 61 Inclination Scores 06 Milestones 61 IBAN Validation Service 08 Financial and Operational Indicators 61 LCS Customer Objections Handling System (MIDES) 62 Fraud Attempt Detection and Prevention Service MANAGEMENT 62 Loans Analysis Portal (LAP) 14 Letter from the Chairman 16 Letter from the General Manager Our Products Provided to TBB’s Risk Center 20 Board of Directors 66 Credit Limit-Credit Risk Inquiry and Information Sharing 24 Senior Management 66 Sharing Information about Protested Bills 26 Members 66 Bounced Cheque Inquiry and Information Sharing 28 Organizational Chart 66 Individual Cheque Inquiry 67 Risk Center Customer Report Service BUSINESS UNITS 67 Credit Reference System (CRS) 32 Audit Committee 68 Corporate Bureau System (CBS) 32 Information Technologies Department 69 Customer Objections Handling System (MIDES) Personal System and Software Development Unit 69 Data Verification System (DVS) Corporate System and Software Development Unit 69 Cheque Report Raw Data Presentation IT Project Management Unit 71 Risk Report Raw Data Presentation IT Infrastructure and Operation Unit 71 Duplicate Cheque Warning System 36 Strategic Planning and Corporate Relations Department 71 Bounced Cheque Warning System Banks Business Unit 71 Inquiry and Warning about Entities Prohibited from Findeks Business Unit Participation in Tenders Product Management and Development Unit 72 Data Sharing about Derivative Transactions Corporate Communications Unit 72 Data Updating Application Data Analysis and Central Decision Support Systems Unit 72 Data Validation and Sanction Application Communications Center Unit 72 Acceptance & Rejection Notifications Related to Loan Applications 38 Financial Reporting and Financial Affairs Department 73 Sharing of Internal Ratings Scores Financial and Administrative Affairs Unit 73 Credit Rating Agencies (CRAS) and Sharing of Rating Scores Budget and Reporting Unit 73 Government Agency Services and Customer Data Requests Procurement and Contract Management Unit 73 Member Requests Management Service 41 Risk Management Department 73 Risk Center Bulletins and Statistics Publishing Services 42 Compliance and Legal Department 73 Paid Bills Inquiry Service 43 Internal Audit Department 73 Sharing Information about Cheques under Interim Injunction 43 Audits Conducted, Sanctions and Penalties 73 Sharing Information about Companies that have Declared Imposed during the Period Bankruptcy/Suspended Bankruptcy/Debt Composition 43 Competition Status of the Executives of the Company 74 Sharing Information about Customers Banned from Using Cheques 43 Remuneration of the Members of the Board of Directors and 74 Revenue Administration Record Search Senior Managers 74 Cross Cheque Relations Inquiry 43 Dividend Distribution Proposal 44 Internal Control Department Findeks 44 Risk Center Data and Demand Management Department 77 Findeks 45 Human Resources Department 78 Findeks Credit Rating 78 Risk Report ACTIVITIES 78 Cheque Report 78 Cheque Index Our Products and Services 79 Warning Service 49 Limit Control System (LCS) 79 Tracer 49 Personal Credit Rating (PCR) 80 Rating Consultancy 51 False Information/Document/Declaration/Application 80 Findeks QR Code Cheque System Alert System (SABAS) 80 Letter of Guarantee Status Inquiry 52 Internet Frauds Alert System (IFAS) 81 Findeks with Numbers 52 Personal Indebtedness Index (PII) 53 Risk Report OUR SOCIAL CONTRIBUTION 54 Cheque Report 85 “You Imagine, We Realize” Social Responsibility Project 55 GeoMIS – Map-Based Reporting Service Competition 55 Agricultural Loans Assessment System (TARDES) 85 The Story of Realizing a Dream: “If You’re There, We’re There, Too” 56 Cheque Index 85 KKB’s Running Team Run for Charity 57 Central Decision Support Systems (CDSS) 57 Commercial Credit Rating (CCR) REPORTING 57 Prescribed Accounts 88 Declaration of Conformity for the Annual Report 59 Address Processing Service 90 Agenda of the Ordinary General Assembly 59 Cheque Status Inquiry 59 Farmer Registry System WHO ARE WE? 01. ABOUT KKB

Accounting Period of Report Kredi Kayıt Bürosu (“KKB”), Turkey’s first vate legal entities and third real persons 01.01.2015 – 31.12.2015 and the only credit bureau was founded if consent has been given by the custo- on April 11, 1995 as a partnership between mers. Upon transfer of the Risk Centrali- Trade Name nine leading banks. As of year-end 2015, zation Center within the organization of KKB Kredi Kayıt Bürosu A.Ş. KKB, a highly regarded financial instituti- the Central Bank of Turkey, the Risk Center on, had 185 members: 53 banks, 12 con- of the Banks Association of Turkey star- Trade Registration Number sumer finance companies, 69 factoring ted up operations on 28 June 2013. KKB 329148-276730 companies, 29 leasing companies, 7 in- conducted all operational and technical surance, 12 asset management compa- activities through its own organization as Mersis Number nies and 3 other types of companies. As an agency of the Risk Center of TBB and 0564-0004-2270-0011 required by Banking Law No: 5411 (Article providing data collection and sharing ser- 73/4), KBB was established by at least vices to 192 financial institutions which Address five banks to facilitate the exchange of in- are members of the Risk Center. Barbaros Mah., Ardıç Sk., Varyap formation and documents between finan- Meridian, F Blok, ATAŞEHİR-İSTANBUL cial institutions. Under the same article, KKB offers its services not only to finan- corporate members have been sharing cial institutions, but also to individuals Anadolu Kurumlar Tax Office/Tax Number customers’ credit information through and the real sector through “Cheque Re- 564 000 4227 KKB since April 1999. port” and “Risk Report” systems launched “WHEN WE STARTED OUT in January 2013. In September 2014, KKB Phone Number With Law No. 6111 issued on February 25, gathered its services aimed at individual +90 216 579 29 29 2011, Additional Article 1 and Provisional customers and the real sector under the IN 1995, THE IMPORTANCE Article 28 were added to Banking Law umbrella of Findeks, the consumer servi- Fax Number No. 5411. Pursuant to Additional Article 1, ce platform of KKB. In addition to develo- +90 216 455 45 36 a Risk Center has been established within ping new products and services during the organization of the Banks Association the year, KKB continued to create added AND THE FUTURE OF OUR Website of Turkey (TBB) to collect the risk data of value for the banking-finance industry www.kkb.com.tr customers of credit institutions and any primarily, as well as the real sector, throu- financial institutions deemed appropriate gh partnerships across different indust- BUSINESS WAS NOT YET Call Center by the Banking Regulation and Supervisi- ries. In June 2015, KKB launched the “QR 444 99 64 – [email protected] on Agency and to share such data with Code Cheque System,” kicking off a new the referenced institutions and with the era for the real sector. CLEARLY UNDERSTOOD.” customers themselves, or with any pri-

WE TOOK OFF FROM THE FUTURE NOT THE PRESENT

2 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 WHO ARE WE? 3 02. SHAREHOLDING STRUCTURE 03. VISION, MISSION AND STRATEGIES

AKBANK T.A.Ş. Vision Strategies 9.09 YAPI VE KREDİ BANKASI A.Ş. TO STEADILY INCREASE THE VALUE WE DELIVER › TO ESTABLISH EFFECTIVE RISK MANAGEMENT TÜRKİYE GARANTİ 18.18 BANKASI A.Ş. THROUGH OUR PRODUCTS AND SERVICES, AND MECHANISMS BY ENSURING INFORMATION 9.09 REDUCE COSTS TO ENABLE THE FINANCIAL SECURITY AND BUSINESS CONTINUITY IN SECTOR TO MANAGE ITS RISKS MORE THE SERVICES PROVIDED TO THE FINANCIAL EFFECTIVELY, SECTOR AND REAL SECTOR,

TO PROVIDE THE NECESSARY TOOLS AND › TO DELIVER CUSTOMER-FOCUSED PRODUCTS INFORMATION TO ENABLE THE REAL SECTOR TO AND SERVICES TO THE FINANCIAL SECTOR TÜRKİYE MANAGE ITS RISKS, AND REAL SECTOR BY PROVIDING ADVANCED İŞ BANKASI A.Ş. TECHNOLOGY AND HARDWARE SOLUTIONS, 9.09 TO BOOST FINANCIAL AWARENESS AND RISK AWARENESS AMONG INDIVIDUALS ACROSS THE › TO GENERATE SOCIAL AND ENVIRONMENTAL COUNTRY, HELP THEM BUILD AND MANAGE THEIR BENEFITS VIA SOCIAL RESPONSIBILITY AND CREDIBILITY, AND IMPROVE FINANCIAL LITERACY. SUSTAINABILITY PROJECTS AND TO CREATE A SOCIALLY RESPONSIBLE CORPORATE CULTURE.

Mission TÜRKİYE HALK T.C. ZİRAAT BANKASI A.Ş. BECOMING TURKEY’S EVER-GROWING ASSET BANKASI A.Ş. 18.18 9.09 AND THE WORLD’S LEADING AND EXEMPLARY CREDIT BUREAU BY EXCEEDING EXPECTATIONS WITH INNOVATIVE PRODUCTS AND SERVICES. DENİZBANK A.Ş. 9.09 T. VAKIFLAR ŞEKERBANK T.A.Ş. BANKASI T.A.O. 9.09 9.09

Kredi Kayıt Bürosu (KKB), Turkey’s first and the WE ARE IMPROVING WE ARE BECOMING STRONG WE ARE STRONG WE ARE STRONGER WE ARE VERY STRONG only credit bureau was founded on April 11, 1995 NUMBER OF as a partnership between nine leading banks. MEMBERS 185

4 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 WHO ARE WE? 5 04. MILESTONES

KKB CONTINUES TO GROW 1995 2005 2012 2014 2015

BY ASSUMING NEW DUTIES Turkey’s first and only credit bureau, KKB The Commercial Bureau System was put › Undergoing a period of rapid transfor- › The Findeks brand was introduced › The Findeks QR Code Cheque AND RESPONSIBILITIES THAT was established on April 11. into use for members in June. mation, KKB set out to create a system and www.findeks. com launched. Fin- System launched in collabo- CONTRIBUTE TO TURKEY’S for the real sector, similar to the clo- deks was introduced to the press. A ration with the Banks Associ- ECONOMIC DEVELOPMENT. 1999 2006 sed-circuit system between banks. 360-degree communications campa- › In parallel with the modified vision and ign commenced. ation of Turkey. › The Credit Reference System (CRS) la- › MIDES, Information Verification and the › needs, the organizational structure was › The first corporate social responsibi- The National Fraud Detection unched in April. Emergency Update System were con- revamped, and new corporate identity lity project, “You Imagine, We Reali- and Prevention Service laun- › With an amendment to the Banking verted into an online, interactive infor- work was completed. ze,” organized by KKB for all university Law on December 17, 1999, in addition mation exchange platform. ched. › Concrete steps were taken to launch students in Turkey, started. The www. › to companies such as banks, insurance › The Limit Control System (LCS) launc- The Factoring Invoice Pool the Risk Center. Risk and Cheque Re- hayaledingerceklestirelim.com website providers and consumer finance com- hed pursuant to Article 9 of the Debit was created. ports were introduced and the E-Re- launched. panies, other corporate enterprises Cards and Credit Cards Law. › Ground was broken on the porting System, enabling electronic › GeoMIS, the map-based reporting sys- deemed appropriate by the Banking report requests and delivery, went into tem, was presented with the “Oracle Data Center, which will be Regulation and Supervision Agency 2007 service. 2014 Innovator Excellence” award. built in Ankara. (BRSA) are allowed to become mem- The Internet Frauds Alarm System (IFAS) › Cheque Status Inquiry launched. › The Cross Cheque Inquiry bers of KKB. launched in February › The Household Database and Trade Re- Application launched. 2013 2000 gistry Sharing System launched. › IBAN Verification Service la- 2008 › › The Electronic Reporting (E-Reporting) The Loans Analysis Portal went live. unched. › The Customer Objections Handling Sys- › The Address Processing System laun- › With the addition of the data from System launched. › tem (MIDES) launched in April and SA- ched. The daily sharing system Mortgaged Real Estate, Persons Ba- › Commercial Credit Rating (CCR) launc- BAS went into operation in September. › Letter of Guarantee Status Inquiry went into service. nished from Participation in Tenders, hed. › In November, MIDES migrated to an ele- (LGSI) launched. › The Real Sector Credit As- and Bounced Cheques to the Corporate › Credit Rating and Cheque Index star- ctronic platform, making it possible to Bureau System, the database was en- ted to be provided together with the sessment System, designed reply to a customer’s dispute within riched. Cheque and Risk Reports. in collaboration with the Auto two hours maximum. › The technical infrastructure of SABAS › E-Newsletter started to be sent to KKB Leasing and Rental Compa- was improved and integrated with the members regularly. 2001 nies Association (TOKKDER) › KKB system. GeoMIS, the map-based reporting ser- for the vehicle rental and le- vice, was made available to CRS-mem- Credit Account Records as well as Credit asing sector, launched. Application Records launched in June. 2009 ber institutions. › › TARDES and GeoMIS websites went live. The second edition of the The Bounced Cheque Query System 2002 › Data quality rose from 80% to 90% with social responsibility project launched for inquiry of bounced cheque the support of member institutions. competition, “You Imagine, The Information Verification System (IVS) data, which are shared with the members › Personal Credit Rating (PCR) was ope- went into service. on a daily basis. We Realize,” was held. ned for use with an upgraded fourth version. 2004 › Following the agreement executed Individual Credit Score (ICS) was intro- between the Banks Association of Tur- duced. key (TBB) and KKB, work on the Risk Center commenced. All infrastructure and operation related works were undertaken by KKB. › The website www.kkb.com.tr was ref- reshed.

6 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 WHO ARE WE? 7 05. FINANCIAL AND OPERATIONAL INDICATORS

IN ADDITION TO DEVELOPING STANDING OUT WITH ITS CRS INQUIRIES (MILLION UNITS) NEW PRODUCTS AND ROBUST TECHNOLOGY BANKS CONSUMER FINANCE 500 SERVICES DURING THE YEAR, INFRASTRUCTURE, WHICH 432

KKB CONTINUED TO CREATE IS SUPERIOR IN TERMS OF 375 375 ADDED VALUE FOR THE SPEED AND QUALITY, KKB 53 12 320 BANKING-FINANCE INDUSTRY BOOSTED THE NUMBER OF 250 246 PRIMARILY, AS WELL AS THE CRS (CREDIT REFERENCE 204 REAL SECTOR, THROUGH SYSTEM) INQUIRIES TO 432 PARTNERSHIPS ACROSS FACTORING LEASING MILLION AS OF YEAR-END 125 DIFFERENT INDUSTRIES. 2015. 0 69 29 2011 2012 2013 2014 2015

CORPORATE BUREAU INQUIRIES (MILLION UNITS)

INSURANCE OTHER 32

24 7 3 24

16 12 ASSET MANAGEMENT TOTAL MEMBERS 8 COMPANIES 6 22 0 12 185 2011 2012 2013 2014 2015

RETAIL CREDIT RATINGS (MILLION UNITS)

400 366 Key Operational Indicators 2011 2012 2013 2014 2015 317 CRS Inquiries (million) 204 246 320 375 432 300 279 Corporate Bureau Inquiries (million) 2 2 6 12 24 Retail Credit Ratings 171 208 279 317 366 208 200 Inquiry Records/month (million) 20 26 32 46 52 171 Objections on MIDES 309 230 279 221 303 100 LCS Inquiries (million) 19 33 37 99 136 Produced Cheque Reports (million) 0.0 0.7 5.1 12.4 21 0 Produced Risk Reports (million) 0.0 0.1 1.8 6.3 11 2011 2012 2013 2014 2015

8 WHO ARE WE? 9 05. FINANCIAL AND OPERATIONAL INDICATORS

BOASTING A RICH LCS INQUIRIES (MILLION UNITS) WITH 185 CORPORATE MEMBERS (ITEM) PORTFOLIO OF PRODUCTS MEMBERS AS OF YEAR-END 160 200 AND SERVICES, KKB 2015, KKB PRODUCED 21 185 136 INCREASED THE NUMBER MILLION CHEQUE REPORTS 154 120 150 149 OF LCS (LIMIT CONTROL AND 11 MILLION RISK 136 99 SYSTEM) INQUIRIES TO 136 REPORTS DURING THE YEAR. 102 MILLION AS OF YEAR-END 80 100 2015. 40 50 33 37 19

0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

PRODUCED CHEQUE REPORTS (MILLION UNITS) NUMBER OF PRODUCTS (ITEM)

24 60 57 21

18 45

12 12 30 26

19 6 5 15 10 7

0 1 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

PRODUCED RISK REPORTS (MILLION UNITS) NUMBER OF EMPLOYEES

12 280 11 264

216 9 210

6 6 140 138

76 3 70

2 29 0 0.1 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

10 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 WHO ARE WE? 11 MANAGEMENT 06. LETTER FROM THE CHAIRMAN

Dear Stakeholders, NEW GOALS, NEW PROJECTS FOR KKB’S KKB WILL CONTINUE TO LEAD THE 20TH ANNIVERSARY FINANCIAL INDUSTRY IN 2016. Several developments that took place in KKB contributes to the robustness of Tur- As we continue to expand, we are com- 2015 had a significant impact on global key’s economy as a whole with products mitted to providing maximum benefit markets. After ending its bond-purchase and services designed to help the ban- and support to all the sectors we serve, program, the Federal Reserve (Fed) began king-finance industry, as well as the real particularly the banking-finance industry. raising interest rates in December, thus sector and individuals, manage their risks KKB invests in its employees and derives shifting capital flows once again toward more effectively. Indeed, KKB has become strength from them. Thanks to this stren- developed countries. As the US eco- a major pillar of our country’s economy. gth coupled with the excitement and joy nomy demonstrated a strong recovery, We are proud to have introduced new ser- of achieving ongoing success, KKB will the Eurozone experienced a moderate vices aimed at creating added value for move forward in the coming decades. rebound. Meanwhile, emerging markets the Turkish economy in 2015, which was I would like to take this opportunity to faced considerable capital outflows and also KKB’s 20th anniversary year. Additio- thank our employees and stakeholders their currencies depreciated substantial- nally, I am pleased to announce that we for their support and contribution to KKB’s ly against the US dollar. As a result, con- have considerably improved our product 2015 operations. I hope 2016 brings even sumption-led economic growth began to and service offering, especially in terms greater success to our country’s eco- materialize in these countries. of sustainability, speed and quality, by un- nomy and KKB. dertaking new investments in information TURKEY’S ECONOMY MAINTAINED ITS technologies. Respectfully yours, GROWTH MOMENTUM Despite significant portfolio outflows MORE DIVERSIFIED PRODUCTS AND from developing countries and uncer- SERVICES, THANKS TO THE RISK CENTER tainty induced by two general elections We continued to diversify our products held on June 7 and November 1, the Tur- and services after taking over the Risk kish economy achieved strong growth – Center operations from the Banks As- ERTUĞRUL BOZGEDİK “WE USE OUR CREATIVE ENERGY more than 3% – in 2015. Even though two sociation of Turkey in 2014. We worked Chairman of the Board of Directors major elections took place in Turkey, the very hard to develop products that crea- country adhered to macroeconomic dis- te added value in light of data obtained TO DRIVE OUR PURSUIT OF cipline while the banking industry main- from the players in the banking-finance tained strong levels of capital adequacy industry and taking into consideration INNOVATION. THIS WAY, WE – both positive, desirable outcomes for newly emerging risk perceptions. all players in Turkey’s economy. Because Turkey is a net energy importer, its current CAN TURN CHALLENGES INTO account deficit fell significantly due to plunging global commodity prices, in par- OPPORTUNITY.” ticular oil prices.

ERTUĞRUL BOZGEDİK CHAIRMAN OF THE BOARD OF DIRECTORS WE DERIVE OUR STRENGTH TO PERFORM FROM OUR EMPLOYEES

14 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 MANAGEMENT 15 07. LETTER FROM THE GENERAL MANAGER

Dear Stakeholders, initiative made it possible to upload fi- (“BRSA”) has demanded the implemen- nancial and payment performance data tation of this project by banks for a long Turkey experienced a high degree of linked to millions of accounts into the time. This effort aims to create a data pool economic fluctuations in 2015. However, main system on a daily basis. As a result, consisting of risk management informati- despite two general elections, adverse our members became able to make credit on obtained from participating banks, and developments in the region and global decisions in a more effective manner by to develop advanced credit risk models economic uncertainties, the Turkish eco- using the most up-to-date data. In 2015, for Basel II by using this information. With nomy performed better than expectati- we continued to add value to the sector this project, we plan to calculate Proba- ons, outpacing European economies in with other new, innovative products and bility of Default (PD), Exposure at Default terms of growth. As economic activity services, including the Cross Cheque (EAD) and Loss Given Default (LGD), thus continued to accelerate in the last quar- Inquiry Application and the Cheque Re- setting a benchmark for the sector. ter of the year, in an environment plagued port Bearer Performance Presentation by uncertainty, Turkey posted remarkable System. A NEW SERVICE DESIGNED FOR THE growth at year’s end, which pleased us VEHICLE-LEASING SECTOR all. KKB’s responsibilities have grown signi- Offering products and services aimed at ficantly after it started to carry out the spreading risk management practices ac- WE HAD ANOTHER SUCCESSFUL YEAR Risk Center operations on behalf of the ross all industries, KKB initiated an impor- In 2015, Kredi Kayıt Bürosu (KKB) achieved Banks Association of Turkey (“TBB”). As of tant collaboration with the Auto Leasing its goals, especially in terms of product year-end 2015, KKB produced a total of 21 and Rental Companies Association (TOKK- and service diversification and improve- million cheque reports and 11 million risk DER) in first quarter 2015. With the launch ment of core competencies. We provided reports; it also generated more than 366 of the customer risk assessment system, significant added value with our advan- million individual credit scores. KKB had designed especially for the vehicle rental ced product and service portfolio. As a 185 members at year-end 2015. Meanwhi- and leasing sector, auto-leasing compa- “IN TODAY’S WORLD, INFORMATION result, the real sector and individuals, in le, our workforce grew to 264 employees; nies acquired the ability to manage both addition to the finance industry, were able our staff members play a key role in KKB’s their risks and customer relationships to take control of their financial situation ever-expanding business volume and or- more effectively. IS THE MOST VALUABLE ASSET. and manage risks effectively. ganizational structure. THE QR CODE CHEQUE BECAME A SYMBOL GROWING BUSINESS VOLUME AND NEW In keeping with our objective to meet all OF COMMERCIAL REPUTATION THEREFORE, WE DEVELOP PRODUCTS CORE COMPETENCIES the data-sharing needs of the banking In line with our innovative approach to Recording more than 430 million inquiries industry, we completed the first phase product and service development, we in 2015, we became one of the biggest of the Basel National Credit Data Pooling developed and rolled out the Findeks QR AND SERVICES TO ENABLE OUR credit bureaus in Europe. Additionally, we project, which is being carried out by the Code Cheque System, a first-of-its-kind achieved a global first with our Daily Data Banks Association of Turkey. The Ban- in the world, in third quarter of 2015. De- STAKEHOLDERS TO BASE THEIR Notification project. This groundbreaking king Regulation and Supervision Agency signed in collaboration with the Banks DECISIONS ON QUALITY INFORMATION.” THE BIGGEST RISK IN CREDIT KASIM AKDENİZ MEMBER OF THE BOARD OF DİRECTORS AND GENERAL MANAGER RISK MANAGEMENT IS LACK OF INFORMATION

16 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 MANAGEMENT 17 07. LETTER FROM THE GENERAL MANAGER 08. BOARD OF DIRECTORS

Association of Turkey (“TBB”) and with the at manageable risk levels, and to further ded support to implement this project in ERTUĞRUL BOZGEDİK and Financial Reporting and Accoun- GÖKHAN ERTÜRK support of the Union of Chambers and improve upon them, continued across the Adana. In addition, our employees provi- Chairman of the Board of Directors ting Director, respectively. In 2011, he Member of the Board of Directors and Commodity Exchanges of Turkey (“TOBB”), organization in full force throughout the ded volunteer support to other socially T. İş Bankası A.Ş. was appointed Financial Reporting and the Audit Committee this groundbreaking system is an impor- year. As we expanded the product port- responsible initiatives that we carried out Deputy General Manager, Loans Accounting Group Director; he has ser- Şekerbank T.A.Ş. tant step towards achieving true transpa- folio, we also directed our investments in collaboration with various civil society Ertuğrul Bozgedik was born in Kayse- ved as Deputy General Manager of Re- Deputy General Manager, Retail Banking rency, the cornerstone of safe commerce, towards boosting the quality and secu- organizations. In 2016, we plan to conti- ri in 1964 and graduated from Ankara tail Credits since August 2012. Mr. Uçar Gökhan Ertürk was born in 1970 and gra- for users. We aimed to provide the ability rity of our existing products. While we nue our efforts and activities to improve University, Faculty of Political Sciences, has also been a member of the Board of duated from Boğaziçi University with a to verify cheques and inquire about the continued efforts to improve quality and social responsibility awareness internally, Department of Economics. Having star- Directors at KKB since September 2012. double major in Political Science, Inter- payment history of the issuer to prevent stability, provide uninterrupted service, provide benefits to society, and support ted his professional career as Assistant national Relations and Business Admi- any loss or damage. and establish a sound security infrastru- civil society organizations active in this Inspector Intern on the Inspection Board EGE GÜLTEKİN nistration and Electronic Programming. cture, we broke ground on our new Data key area. at İş Bankası in 1986, he was promoted Member of the Board of Directors He began his banking career at İktisat WE CELEBRATED THE FIRST ANNIVERSARY Center in Ankara. In order to ensure busi- to the position of Assistant Manager of Akbank T.A.Ş. Bank in 1996. In 1997, he set up the Cash OF FINDEKS WITH GREAT SUCCESS ness continuity and information security, KKB’S PERFORMANCE WILL CONTINUE TO the Non-Performing Loans Department Executive Vice President, Credit Management Department at Türk Eko- In September 2014, KKB began to deliver we also successfully passed the renewal IMPROVE IN THE COMING YEAR in 1995 and Regional Manager of the Monitoring and Follow Up nomi Bank and served as Director of its services to individuals and the real se- audits for ISO 27001 (Information Security) Playing a key role in spreading risk ma- Corporate Loans Department in 1999. Ege Gültekin was born in Aydın in 1969 the department. From 2002 to 2006, Mr. ctor under the roof of Findeks, our consu- and ISO 22301 (Business Continuity) cer- nagement culture in various sectors, KKB Appointed Regional Manager of the and graduated from Middle East Techni- Ertürk worked as Head of SME Banking mer-oriented, financial services platform. tifications, which we obtained in August plans to develop new products and ser- Non-Performing Loans Department in cal University, Department of Economi- at Akbank. Subsequently, he served as Following the launch of Findeks, we boos- 2014. vices tailored to meet the needs and ex- 2002, Mr. Bozgedik became Manager of cs. Subsequently, she earned a Master’s Vice President of SME and Agricultural ted our member numbers to more than 1 pectations of the Turkish economy in the CRS INQUIRIES the Corporate Loans Department in 2004 degree from The Johns Hopkins Carey Banking (2006), and Vice President of million in one year. For us, Findeks is not WE ARE MAKING RAPID PROGRESS IN upcoming period. and President of the Inspection Board in Business School. After graduating from Retail Banking (2009) at DenizBank and only a financial services platform but also CREATING SOCIAL VALUE 432 MILLION 2008. On April 13, 2011, Mr. Bozgedik was Ziraat Bank’s Banking School in 1992, Board Member at Deniz Pension and a social responsibility project. To that end, In addition to the services we provide to I would like to express my sincere gratitu- appointed Deputy General Manager. Mr. she began her career at Osmanlı Bank Life. Mr. Ertürk has served as Senior Vice we aim to help individuals, SMEs, and ot- the banking-finance industry, the real se- de to our partners and members for their Bozgedik has served as a member of on the Audit Committee. Ms. Gültekin President of Retail Banking Marketing at her real sector companies understand the ctor and individuals, we are forging ahead unwavering trust and support; to our Bo- the Board of Directors at KKB since 2011. is currently Executive Vice President Şekerbank and Board Member at Şeker importance of receivables risk and mana- to become a socially responsible orga- ard of Directors for giving us strength and in charge of Credit Monitoring and Fol- Factoring since April 2014. He has been a ging their financial situation; to improve nization by providing benefits to society support with their guidance and effecti- CORPORATE BUREAU MEHMET GÖKMEN UÇAR low Up at Akbank T.A.Ş. She has been a member of the Board of Directors at KKB financial literacy across the country; and and younger generations. To that end, ve meetings throughout the year; and to Member of the Board of Directors and member of the Board of Directors at KKB since March 2015. to facilitate access to financing. We plan we held the second edition of our social all of our colleagues for their efforts and SYSTEM (CBS) INQUIRIES the Audit Committee since May 2015. to continue our efforts in this area in the responsibility competition, “You Imagine, hard work in every process and operation. Yapı ve Kredi Bankası A.Ş. ERHAN ADALI coming period as well. We Realize,” which aims to raise awa- Vice Chairman, Retail Loans İZZET OĞUZHAN ÖZARK Member of the Board of Directors reness about the importance of social Respectfully yours, 24 MILLION Management Member of the Board of Directors T. Garanti Bankası A.Ş. OUR CORNERSTONES ARE BUSINESS responsibility among university students. Mehmet Gökmen Uçar was born in Kay- DenizBank A.Ş. Deputy General Manager, Loans CONTINUITY AND INFORMATION SECURITY In 2015, we received 560 applications seri in 1975 and graduated from Boğazi- Deputy General Manager, Retail Banking Erhan Adalı graduated from İstanbul In 2015, we resolutely undertook both in- from across Turkey. A group of students çi University, Faculty of Economics and Sales Group University, Faculty of Political Sciences, ternal and external activities to manage from Acıbadem University’s School of Me- Administrative Sciences, Department of İzzet Oğuzhan Özark was born in İstan- Department of Public Administration. information security risk, a major challen- dicine won first prize with their project, Economics. He began his professional bul in 1976 and graduated from İstan- He joined Garanti Bankası as Assistant ge facing the banking industry in today’s “If You’re There, We’re There Too,” which KASIM AKDENİZ career in 1998, and worked as Indepen- bul Technical University, Department of Inspector in 1989. There, he worked as world. Corporate governance practices involves conducting health screenings of Member of the Board of Directors and dent Auditor at Başaran Nas Bağımsız Mathematics Engineering. He started Branch Office Manager, Regional Mana- and efforts to conduct internal processes seasonal agricultural workers. KKB provi- General Manager Denetim and S.M.M.M. A.Ş. (PwC) until his professional career in the Retail ger, SME Banking Marketing Coordinator. 2002, achieving the title Certified Public Banking Department at Garanti Bankası He served as General Manager at Garan- Accountant and Financial Advisor. Mr. in 1997. He worked as Supervisor in the ti Emeklilik ve Hayat A.Ş. from 2005 to Uçar joined Koçbank in 2002 and wor- SME Banking Department of the same 2012. He was appointed to his present ked as Director of Budget Planning and bank from 1999 to 2002 and in the CRM position as Deputy General Manager, Management Information Systems (MIS) Department between 2003 and 2004. Loans at Garanti Bankası on August 3, With our advanced product and service in the Financial Control and Planning De- Starting work at DenizBank as Manager 2012. Mr. Adalı is also a member of the partment until 2005. From 2005 to 2007, of the SME Banking Sales Department in Board of Directors at Garanti Leasing portfolio, we continued to contribute to the risk he assumed various management po- 2004, Mr. Özark served as Group Mana- A.Ş. and Garanti Emeklilik ve Hayat A.Ş. sitions in the areas of strategy, budge- ger of Retail Banking Sales Management management processes undertaken by the finance ting and planning in Italy, Germany and from 2009 until 2013 and was appointed Austria within UniCredit Group. In 2008, Deputy General Manager of the Retail industry, the real sector and individuals in 2015. Mr. Uçar joined Yapı Kredi Bank, where Banking Sales Group in February 2014. he worked as Capital Management, Ex- Mr. Özark has served as a member of pense Control and Allocation Manager; the Board of Directors at KKB since April 18 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 MANAGEMENT 19 Financial Reporting Group President; 28, 2014. 08. BOARD OF DIRECTORS

MEHMET SEBAHATTİN BULUT VEYSEL SUNMAN Establishment of the KKB Corporate Bure- Member of the Board of Directors Member of the Board of Directors au, the Costs of Intermediacy on Loans, Türkiye Halk Bankası A.Ş. and the Audit Committee and the Loans and Provisions; in addition, Deputy General Manager, Loan Policies T.C. Ziraat Bankası A.Ş. he was Chairman of the Working Groups and Risk Monitoring Head, Credit Risk Monitoring Department on the Credit Guarantee Fund (CGF) and Mehmet Sebahattin Bulut was born in Veysel Sunman was born in Sakarya in the Risk Center. Erzurum in 1965 and graduated from Ulu- 1967 and graduated from Marmara Uni- dağ University, Faculty of Economics and versity, Higher School of Press and Me- As a result of the studies conducted by Administrative Sciences, Department of dia, Department of Journalism and Pub- the Task Group working on the Costs of In- Econometrics. After working in the private lic Relations. He worked as Specialist in termediacy on Loans and the Banking Re- sector for some years, he joined T. Vakıflar the Credit Risk Monitoring Department at gulation and Supervision Agency (“BRSA”), Bankası T.A.O. in 1994 as Assistant Finan- Pamukbank T.A.Ş. from 1988 to 1994. Mr. the Resource Utilization Support Fund cial Analysis Specialist. He later served Sunman went on to work as Manager of (“RUSF”) payable on commercial loans as Inspector, Follow-up Manager, Com- the Credit Monitoring Department at Os- and stamp duty payable on guarantee-li- mercial & Project Loans Manager, Branch manlı Bankası A.Ş. between 1994 and ke instruments were reduced to zero. Ad- Manager, and Department Head at the 2001. Subsequently, he served as Head of ditionally, as a result of the studies con- same bank. Mr. Bulut has also served as the Credit Risk Monitoring Department at ducted by the KGF Working Group, banks a member of the Boards of Directors and T. Halk Bankası A.Ş. from 2002 until 2005 were allowed to become members of KGF the Audit Committees of various subsidia- and as Head of the Internal Control and A.Ş. and the Treasury-Supported KGF Gua- ries of T. Vakıflar Bankası T.A.O. On July 10, Monitoring Center at MNG Bank from 2005 rantee was introduced. Meanwhile, efforts 2014, he was appointed Deputy General to 2007. Mr. Sunman has served as Head undertaken in collaboration with the Risk Manager of Loan Policies and Risk Moni- of the Credit Risk Monitoring Department Center Working Group to establish a Risk toring at Halkbank. Mr. Bulut has been a at T.C. Ziraat Bankası A.Ş. since 2007. Center under TBB were completed. Mr. Ak- member of the Board of Directors at KKB deniz served as Chairman of the Board of since 2014. KASIM AKDENİZ Directors of KKB in 2007, and as a member Member of Board of Directors of the Board between 2005 and 2011. He MEHMET EMİN KARAAĞAÇ and General Manager was appointed to his current position of Member of the Board of Directors Kasım Akdeniz started his professional General Manager at KKB in October 2011. T. Vakıflar Bankası T.A.O. career on the Inspection Board at Yapı Executive Vice President, Legal Affairs & Kredi. He graduated from Dokuz Eylül Uni- Loan Monitoring versity, Department of Economics. Mr. Mehmet Emin Karaağaç graduated from Akdeniz went on to undertake various Istanbul University, Faculty of Law and responsibilities at various levels of mana- began his professional career in 1989 as gement in the banking industry, primarily an Attorney at Türkiye İş Bankası A.Ş. He in the areas of establishment and ope- served as Assistant Legal Counsel and ration of loan allocation and monitoring Legal Counsel in various departments of systems, establishment of credit policies, the same bank until January 2, 2012. Mr. and compliance from 1996 until 2011. Du- Karaağaç joined T. Vakıflar Bankası T.A.O. ring that time, Akdeniz took part in the on January 3, 2012 as Chief Legal Officer. working groups of the Banks Association He was appointed to his current position of Turkey on the preparation of the Ban- as Executive Vice President of Legal Affa- king Law and its regulations. He served as irs & Loan Monitoring on October 25, 2013. a member of the Working Groups on the

BACK ROW (LEFT TO RIGHT): Mehmet Gökmen Uçar, Mehmet Sebahattin Bulut, Gökhan Ertürk, Erhan Adalı, Mehmet Emin Karaağaç, İzzet Oğuzhan Özark, Veysel Sunman FRONT ROW (LEFT TO RIGHT): Ertuğrul Bozgedik, Ege Gültekin, Kasım Akdeniz KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 MANAGEMENT 23 09. SENIOR MANAGEMENT

KASIM AKDENİZ with the environment at that time. After starting work as on COBIT, TFRS, International Accounting Standards, Oliver Member of the Board of Directors and General Manager Head of the Personal Loans Monitoring and Collection De- & Wyman Risk Management, and European Central Bank Kasım Akdeniz started his professional career on the partment at Akbank in 2009, Mr. Kaya joined the Board of Eurosystem Macro-Micro Financial Audit. Mr. Cenk was Inspection Board at Yapı Kredi. He graduated from Dokuz Directors at Kredi Kayıt Bürosu. He was appointed Head appointed Deputy General Manager of Legal Compliance Eylül University, Department of Economics. Mr. Akdeniz of the Personal Loans Allocation Department at the same and Internal Audit in April 2012, and he currently serves as went on to undertake various responsibilities at various organization in January 2012. Kaya has worked as Deputy Deputy General Manager of Internal Audit. levels of management in the banking industry, primarily General Manager in charge of Strategic Planning and in the areas of establishment and operation of loan allo- Corporate Relations at KKB since May 2012. SERDAR ÇOLAK cation and monitoring systems, establishment of credit Risk Management policies, and compliance from 1996 until 2011. During that İNCİ TÜMAY KESİCİ Manager time, Akdeniz took part in the working groups of the Banks Financial Reporting and Financial Affairs Serdar Çolak has 10 years of professional experience. He Association of Turkey on the preparation of the Banking Deputy General Manager graduated from Robert College and from İstanbul Technical KASIM AKDENİZ ABDULLAH BİLGİN Law and its regulations. He served as a member of the İnci Tümay Kesici has 20 years of professional experien- University and State University of New York, Department of Working Groups on the Establishment of the KKB Corpo- ce. She graduated from Boğaziçi University, Department Economics, respectively, as the highest ranking student. rate Bureau, the Costs of Intermediacy on Loans, and the of Business Administration in 1995. She started her career He received his Master’s degree from Boğaziçi University, Loans and Provisions; in addition, he was Chairman of the at Ernst & Young Denetim in 1995. She achieved the title Department of Management Information Systems. Mr. Ço- Working Groups on the Credit Guarantee Fund (CGF) and Public Accountant and Financial Advisor in 1998. After she lak started his professional career as SAP Consultant in the Risk Center. resigned as Manager from Ernst & Young Denetim in 2000, New York City (USA) in 2006. After gaining 18 months of Ms. Kesici worked as Deputy General Manager in charge of experience there, he went on to work in the İstanbul office As a result of the studies conducted by the Task Group Financial Affairs, Administrative Affairs, Budget Reporting of PwC Turkey, where he served as Manager of the Risk, working on the Costs of Intermediacy on Loans and the and Operations at Yapı Kredi Leasing from 2000 to 2012. Process and Technology Services Department. Having Banking Regulation and Supervision Agency (“BRSA”), the İnci Kesici joined KKB in May 2012, and she has served as broad experience in the finance industry, Mr. Çolak’s areas Resource Utilization Support Fund (“RUSF”) payable on Deputy General Manager of Financial Reporting and Finan- of expertise include corporate risk management, informa- commercial loans and stamp duty payable on guaran- cial Affairs since October 2014. tion systems governance, information security, business tee-like instruments were reduced to zero. Additionally, continuity, SOX IT, organizational and process structuring as a result of the studies conducted by the KGF Working OSMAN SOYSAL of companies in the finance sector, and Banking Regula- Group, banks were allowed to become members of KGF Risk Center Coordination tion and Supervision Agency information systems audits. KORAY KAYA İNCİ KESİCİ A.Ş. and the Treasury-Supported KGF Guarantee was int- Deputy General Manager At PwC Turkey, Mr. Çolak also served as Manager in charge roduced. Meanwhile, efforts undertaken in collaboration Osman Soysal graduated from Middle East Technical Uni- of teams engaged in projects involving audit and consul- with the Risk Center Working Group to establish a Risk versity, Department of Economics. Between 2004 and tancy services at various financial institutions such as Center under TBB were completed. Mr. Akdeniz served as 2013, he held various positions at the Banking Regulation banks, insurance providers, leasing companies, factoring Chairman of the Board of Directors of KKB in 2007, and as and Supervision Agency, including Sworn-in Bank Auditor, companies and capital market intermediary firms. He su- a member of the Board between 2005 and 2011. He was Group Head, and Audit Coordinator. He led the financial bmitted reports to the BRSA as independent auditor in appointed to his current position of General Manager at and legislative inspections as well as the examination of charge of BRSA information systems audits conducted at KKB in October 2011. customer complaints, which were conducted within the many banks and their invested companies in Turkey. Ha- framework of risk-based audits carried out at savings, ving the titles of Information Systems Auditor (CISA), ISO ABDULLAH BİLGİN investment and participation banks and Turkey branch of- 27001 Information Security Management System and ISO Information Technologies fices of foreign banks. From 2009 to 2012, he represented 22301 Business Continuity Management System Chief Au- Deputy General Manager Turkey in the Audit Subgroup of the Basel Committee on ditor, Mr. Çolak has served as Risk Management Manager Abdullah Bilgin has 30 years of professional experien- Banking Supervision, and contributed to improving audit at Kredi Kayıt Bürosu since April 2014. ce. He graduated from Middle East Technical University, quality by providing recommendations on International Department of Computer Engineering in 1985. Mr. Bilgin Standards on Auditing. Between 2006 and 2012, he served HAZAR TUNA received his Master’s degree from İstanbul University, De- as Editor of Active Banking and Finance Magazine, where Internal Control OSMAN SOYSAL ALİ KEMAL CENK partment of International Relations in 2002. Starting his he wrote articles to answer the questions of individual Manager career at Bilpa A.Ş. in 1986, Mr. Bilgin later worked as Sys- customers regarding card usage. Mr. Soysal attended the Hazar Tuna has 10 years of professional experience. After tem Manager at John Deere in the USA. Subsequently, he Master’s program in Public Policy and Public Administra- completing his studies at Üsküdar American High Scho- served as Director in charge of System and Network Ma- tion at Kennedy School of Government at Harvard Univer- ol, she graduated from Purdue University, Department of nagement in the Information Technologies Department at sity between 2012 and 2013. During his studies, he took Computer Engineering in 2005. He completed his Execu- Yapı Kredi Bankası and as Group Manager of Self-Service courses such as Businesses at the Base of the Pyramid tive MBA at Boğaziçi University in 2012. Mr. Tuna started Banking in the Alternative Distribution Channels Depart- and System Dynamics at Harvard Business School and his career in the Corporate Risk Services Department at ment until 2012. Mr. Bilgin has served as Deputy General MIT Sloan School. Mr. Sosyal has served as Deputy Ge- Deloitte Denetim in 2006. He took part in independent in- Manager in charge of Information Technologies at KKB neral Manager in charge of Risk Center, Data and Demand formation systems audits at banks and information sys- since November 2012. Management at KKB since December 2013. tems risk security and Sarbanes-Oxley audit related work in the real sector. Mr. Tuna continued his career in the KORAY KAYA ALİ KEMAL CENK Information Technologies Audit Department at Yapı Kredi Strategic Planning and Corporate Relations Legal Compliance and Internal Audit Bankası from 2008 to 2013. In addition, he conducted pilot Deputy General Manager Deputy General Manager installation work of the audit workflow software program, Koray Kaya has 20 years of experience in the banking in- Ali Kemal Cenk has 15 years of professional experience. He which was designed for use in the entire UniCredit Group, SERDAR ÇOLAK HAZAR TUNA dustry. He graduated from Yıldız Technical University, Fa- graduated from Middle East Technical University, Depart- playing a key role in shaping the final version thereof. Mr. culty of Engineering, Department of Civil Engineering. After ment of Business Administration. Between 2000 and 2012, Tuna has served as Internal Control Manager at Kredi Kayıt completing his MBA studies in the United States between Mr. Cenk held various positions at the Banking Regulation Bürosu since April 2013. 1991 and 1994, Mr. Kaya started his career at Garanti Ban- and Supervision Agency, including Sworn-in Bank Auditor, kası in 1995. He played a key role in the establishment of Group Head, 2011 FSAP Coordinator, and Vice President of BAHATTİN ÇELİK one of the first personal loans scoring systems in Turkey. the Audit Department. He took key roles in the Working Compliance and Legal During his tenure at Garanti Bankası, Mr. Kaya designed Group for the Risk-Focused Supervision Project, through Legal Counsel credit automation systems for consumer loans, credit which the BRSA has reestablished its audit system. He Bahattin Çelik graduated from Dokuz Eylül University, Fa- cards and small enterprise loan applications. In 2004, he also took part in a one-month program geared towards culty of Law in 1985. After completing his internship and started work as a Consultant at Experian. the Risk-Focused Supervision Project involving Federal judicial candidate training, he worked at Yapı Kredi Bank Reserve audits, and carried out FDIC-related studies. Mr. as Attorney, Assistant Legal Counsel and Legal Counsel, Mr. Kaya went on to serve as a Consultant on projects per- Cenk earned a dual MBA/MSF degree from Boston Colle- respectively, between January 1, 1989 and May 31, 2006. taining to automation of credit cards at almost all banks ge between 2007 and 2009. In addition to BRSA audits From June 1, 2006 to January 31, 2015, he worked at ING in Turkey. He created the good/bad definition at the cus- concerning a range of legal issues, internal systems, and Bank as Legal Counsel and Group Manager. He has served tomer level used in the scorecard infrastructure of KKB. information management, he also conducted various au- as Legal Counsel in the Compliance and Legal Department dits in the Netherlands and Germany. Mr. Cenk attended a of KKB since February 15, 2015. Mr. Çelik is an Attorney-Me- BAHATTİN ÇELİK Subsequently, Mr. Kaya served as Director of the Personal Loans Allocation Department at TEB from 2005 until 2009. series of training courses on Risk Management in the USA, diator; he is registered with the Union of Turkish Bar As- During that period, he pioneered the modernization of the Basel II-III, internal control and banking; he also participa- sociations under registration number 19,357, and with the personal loans approval platform of TEB in accordance ted in training courses and has certificates of completion Mediator Registry under the number 1,524. 24 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 MANAGEMENT 25 10. MEMBERS

KKB REGULARLY PUBLISHES Products 2010 2011 2012 2013 2014 2015 FACTORING COMPANIES OTHER DETAILED INFORMATION Banking 35 35 38 39 42 53 Factoring 53 55 72 77 76 69 ABC FAKTORİNG A.Ş. HALK FAKTORİNG A.Ş. BORSA İSTANBUL A.Ş. ABOUT ITS PRODUCTS AND Financial Leasing 3 4 16 16 20 29 ACAR FAKTORİNG A.Ş. HUZUR FAKTORİNG A.Ş. KREDİ GARANTİ FONU A.Ş. SERVICES, DOCUMENTS Consumer Finance 8 8 9 13 12 12 ACL FAKTORİNG A.Ş. ING FAKTORİNG A.Ş. TÜRKİYE TARIM KREDİ KOOPERATİFLERİ AND CIRCULARS ON THE Asset Management Company - - - - - 12 AK FAKTORİNG A.Ş. İSTANBUL FAKTORİNG A.Ş. MERKEZ BİRLİĞİ Insurance and Other - - 1 4 4 10 AKDENİZ FAKTORİNG A.Ş. İŞ FAKTORING A.Ş. WEBSITE UYE.KKB.COM.TR, AKIN FAKTORİNG A.Ş. KAPİTAL FAKTORİNG A.Ş. FINANCIAL LEASING Total 99 102 136 149 154 185 WHICH WAS DEVELOPED ANADOLU FAKTORİNG HİZMETLERİ A.Ş. KENT FAKTORING A.Ş. IN LINE WITH THE NEEDS ANALİZ FAKTORİNG A.Ş. KREDİALTA FAKTORİNG A.Ş. AK FİNANSAL KİRALAMA A.Ş. MEMBER BANKS ARENA FAKTORİNG A.Ş. KREDİ FİNANS FAKTORİNG HİZMETLERİ A.Ş. ALTERNATİF FİNANSAL KİRALAMA A.Ş. AND EXPECTATIONS OF KKB ATAK FAKTORİNG A.Ş. LİDER FAKTORİNG A.Ş. ANADOLU FİNANSAL KİRALAMA A.Ş. MEMBERS. ADABANK A.Ş. İLLER BANKASI ATILIM FAKTORİNG A.Ş. MAKRO FAKTORİNG A.Ş. ARI FİNANSAL KİRALAMA A.Ş. AKBANK T.A.Ş. İSTANBUL TAKAS VE SAKLAMA BANKASI A.Ş. BAŞER FAKTORING A.Ş. MERKEZ FAKTORİNG A.Ş. A&T FİNANSAL KİRALAMA A.Ş. AKTİF YATIRIM BANKASI A.Ş. JP MORGAN CHASE BANK İST. TR ŞB. BAYRAMOĞLU FAKTORİNG A.Ş. MERT FİNANS FAKTORİNG HİZMETLERİ A.Ş. BNP PARİBAS FİNANSAL KİRALAMA A.Ş. ALBARAKA TÜRK KATILIM BANKASI A.Ş. KUVEYT TÜRK KATILIM BANKASI A.Ş. BERG FAKTORİNG A.Ş. MET-AY FAKTORİNG A.Ş. BURGAN FİNANSAL KİRALAMA A.Ş. PAMUK FİNANSAL KİRALAMA A.Ş. ALTERNATİFBANK A.Ş. MERRILL LYNCH YATIRIM BANK A.Ş C FAKTORİNG A.Ş. MNG FAKTORING A.Ş. DE LAGE LANDEN FİNANSAL KİRALAMA A.Ş. ANADOLUBANK A.Ş. NUROL YATIRIM BANKASI A.Ş. CREDITWEST FAKTORING A.Ş. OPTİMA FAKTORİNG HİZMETLERİ A.Ş. DENİZ FİNANSAL KİRALAMA A.Ş. ARAP TÜRK BANKASI A.Ş. ODEABANK A.Ş. ÇAĞDAŞ FAKTORİNG A.Ş. PAMUK FAKTORING A.Ş. ENKA FİNANSAL KİRALAMA A.Ş. ASYA KATILIM BANKASI A.Ş. PASHA YATIRIM BANKASI A.Ş. ÇÖZÜM FAKTORİNG A.Ş. PARAFİNANS FAKTORİNG A.Ş. FİNANS FİNANSAL KİRALAMA A.Ş. BANK MELLAT RABOBANK A.Ş. DE LAGE LANDEN FAKTORİNG A.Ş. PRİME FAKTORİNG HİZMETLERİ A.Ş. GARANTİ FİNANSAL KİRALAMA A.Ş. BANK OF TOKYO MİTSUBİSHİ UFJ TURKEY A.Ş. SOCIETE GENERALE S.A. DENİZ FAKTORİNG A.Ş. SARDES FAKTORİNG A.Ş. KAYNAK FİNANSAL KİRALAMA A.Ş. BANKPOZİTİF KREDİ VE KALKINMA BANKASI A.Ş. STANDARD CHARTERED YATIRIM BANKASI TÜRK A.Ş. DESTEK FAKTORİNG A.Ş. STRATEJİ FAKTORİNG A.Ş. HALK FİNANSAL KİRALAMA A.Ş. BİRLEŞİK FON BANKASI A.Ş. ŞEKERBANK T.A.Ş. DEVİR FAKTORİNG A.Ş. SÜMER FAKTORİNG A.Ş. HALİÇ FİNANSAL KİRALAMA A.Ş. BURGAN BANK A.Ş. T.C. ZİRAAT BANKASI A.Ş. DEĞER FAKTORİNG A.Ş. ŞEKER FAKTORİNG A.Ş. CITIBANK A.Ş. T. GARANTİ BANKASI A.Ş. HARMAN FİNANSAL KİRALAMA A.Ş. DEMİR FAKTORİNG A.Ş. ŞİRİNOĞLU FAKTORİNG A.Ş. MERCEDES BENZ FİNANSAL KİRALAMA TÜRK A.Ş. DENİZBANK A.Ş. T. VAKIFLAR BANKASI T.A.O. DOĞA FAKTORİNG A.Ş. TAM FAKTORİNG A.Ş. ING FİNANSAL KİRALAMA A.Ş. DEUTSCHE BANK A.Ş. THE ROYAL BANK OF SCOTLAND PLC. DOĞAN FAKTORİNG A.Ş. TEB FAKTORİNG A.Ş. İŞ FİNANSAL KİRALAMA A.Ş. DİLER YATIRIM BANK A.Ş. TURKISH BANK A.Ş. EKO FAKTORİNG A.Ş. TUNA FAKTORİNG A.Ş. SİEMENS FİNANSAL KİRALAMA A.Ş. FİBABANKA A.Ş. TURKLAND BANK A.Ş. EKSPO FAKTORİNG A.Ş. ULUSAL FAKTORİNG A.Ş. SMART FİNANSAL KİRALAMA A.Ş. FİNANSBANK A.Ş. TÜRK EKONOMİ BANKASI A.Ş. EREN FAKTORİNG A.Ş. VAKIF FAKTORİNG A.Ş. ŞEKER FİNANSAL KİRALAMA A.Ş. FORTIS BANK A.Ş. TÜRKİYE FİNANS KATILIM BANKASI A.Ş. ERİŞİM FAKTORİNG A.Ş VDF FAKTORİNG A.Ş. TURKISH FİNANSAL KİRALAMA A.Ş. GSD YATIRIM BANKASI A.Ş. TÜRKİYE HALK BANKASI A.Ş. FİBA FAKTORİNG A.Ş. YAPI KREDİ FAKTORİNG A.Ş. VAKIF FİNANSAL KİRALAMA A.Ş. HABIB BANK LİMİTED TÜRKİYE İHRACAT KREDİ BANKASI A.Ş. FİNANS FAKTORİNG A.Ş YAŞAR FAKTORİNG A.Ş. VFS FİNANSAL KİRALAMA A.Ş. HSBC BANK A.Ş. TÜRKİYE İŞ BANKASI A.Ş. GARANTİ FAKTORİNG A.Ş. YEDİTEPE FAKTORİNG A.Ş. YAPI KREDİ FİNANSAL KİRALAMA A.O. ICBC Turkey Bank A.Ş. TÜRKİYE KALKINMA BANKASI A.Ş. GLOBAL FAKTORİNG HİZMETLERİ A.Ş. ZORLU FAKTORİNG A.Ş. YATIRIM FİNANSAL KİRALAMA A.Ş. ING BANK A.Ş. TÜRKİYE SINAİ KALKINMA BANKASI A.Ş. GSD FAKTORİNG A.Ş. ZİRAAT FİNANSAL KİRALAMA A.Ş. INTESA SANPAOLO S.P.A. İTALYA İSTANBUL YAPI VE KREDİ BANKASI A.Ş. MERKEZ ŞUBESİ ZİRAAT KATILIM BANKASI A.Ş. INSURANCE COMPANIES ASSET MANAGEMENT COMPANIES

ATRADIUS CREDIT INSURANCE NV TÜRKİYE MEGA VARLIK YÖNETİM A.Ş. RCT VARLIK YÖNETİM A.Ş. CONSUMER FINANCE COMPANIES İSTANBUL ŞUBESI ARTI VARLIK YÖNETİM A.Ş. SÜMER VARLIK YÖNETİM A.Ş. ALJ FİNANSMAN A.Ş. PSA FİNANSMAN A.Ş. ANADOLU ANONİM TÜRK SİGORTA BEBEK VARLIK YÖNETİM A.Ş. TURKASSET VARLIK YÖNETİMİ A.Ş. DD FİNANSMAN A.Ş. ŞEKER MORTGAGE FİNANSMAN A.Ş. AK SİGORTA A.Ş. DESTEK VARLIK YÖNETİM A.Ş. VERA VARLIK YÖNETİM A.Ş. KOÇ FİNANSMAN A.Ş. TEB FİNANSMAN A.Ş. COFACE SİGORTA A.Ş. EFES VARLIK YÖNETİMİ A.Ş. KOÇ FİAT KREDİ FİNANSMAN A.Ş. TIRSAN FİNANSMAN ANONİM ŞİRKETİ EULER HERMES SİGORTA A.Ş. FİNAL VARLIK YÖNETİMİ A.Ş. MERCEDES BENZ FİNANSMAN TÜRK A.Ş. VFS FİNANSMAN A.Ş. EUREKO SİGORTA A.Ş. GÜVEN VARLIK YÖNETİM A.Ş. ORFİN FİNANSMAN A.Ş. VOLKSWAGEN DOĞUŞ FİNANSMAN A.Ş. ZİRAAT SİGORTA A.Ş. İSTANBUL VARLIK YÖNETİM A.Ş.

26 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 MANAGEMENT 27 11. ORGANIZATIONAL CHART

BOARD OF DIRECTORS

AUDIT COMMITTEE

INTERNAL AUDIT DEPARTMENT

IT Audit Unit GENERAL MANAGER

Finance and Business Units Audit Unit

Member Audit Analysis and Coordination Unit

STRATEGIC PLANNING AND RISK CENTER DATA AND FINANCIAL REPORTING INFORMATION TECHNOLOGY RISK MANAGEMENT INTERNAL CONTROL HUMAN RESOURCES CORPORATE RELATIONS REQUEST MANAGEMENT AND FINANCIAL AFFAIRS COMPLIANCE AND LEGAL DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

System and Software Banks and Financial Risk Center Project and Financial and Administrative Information Security Information Systems Control Development (Corporate) Institutions Unit Product Development Unit Affairs Unit Management Unit Unit Unit

System and Software Product Management and Business Intelligence & Corporate Risk Management Business Units and Financial Development (Consumer) Budget and Reporting Unit Development Unit Reporting Unit Unit Control Unit Unit

System and Software Corporate Communications Purchasing and Contract Development (Added Value) Request Management Unit Process Management Unit Unit Management Unit Unit

Basel National Data IT Service Management Unit Data Analysis and CDSS Unit Repository Unit

IT Substructure and Findeks Business Unit Operation Unit

IT Project Management Unit Communications Center

Operation Unit

28 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 MANAGEMENT 29 BUSINESS UNITS 12. BUSINESS UNITS

IN 2015, KKB CREATED A AUDIT COMMITTEE As part of efforts to measure software AS A RESULT OF CODE load and performance tests were planned In 2015, KKB created a marketing data- SYSTEMS INFRASTRUCTURE code quality, code quality scores have QUALITY IMPROVEMENT as necessary to prevent vulnerabilities. mart, which is key to analyzing data and The Audit Committee is responsible for been assigned to each software develo- Load and security testing became a part understanding customer behavior. It also TO SEND NOTIFICATIONS approving KKB’s annual internal audit per as individual targets to ensure conti- EFFORTS, KKB ACHIEVED of software development and were added set up the infrastructure to be used for VIA DIFFERENT CHANNELS plan; overseeing internal audit, legal nuous improvement of code quality. The WORLD-CLASS SOFTWARE to KKB standards. Under the test-driven various scoring models by taking into compliance, internal control and risk ma- Unit initiated work on a cloud infrastructu- development approach, unit tests were account hundreds of variables. Both bat- AND TO ENABLE TRACKING. nagement activities and evaluating their re to establish sustainable systems and ARCHITECTURE AND CODE written to detect bugs through automated ch and online modules of the campaign THE AIM IS TO MONITOR results; providing preliminary information applied for R&D grants. QUALITY. testing. In 2016, the Department aims to management system, a key component on these matters to the Board of Direc- write unit tests to get 100% code covera- of the CRM system, were created via in- SERVICES EFFECTIVELY tors; evaluating matters deemed impor- Corporate System and Software ge and to pretest software in line with the tegration of the CRM-DWH-ODC systems. AND TO PROMPTLY DETECT tant and bringing these to the attention Development Unit test-driven development process. After the launch of the campaign system, AND CORRECT SERVICE of the Board of Directors; and determining In 2015, KKB created an infrastructure to manual CRM processes became automa- the scope and content of the issues that send notifications via different channels KKB’s internal digital platforms team com- ted. The reporting layer, essential to EBS INTERRUPTIONS AND are to be discussed. and to enable tracking. The aim is to mo- menced work to upgrade the websites in terms of financial affairs, was success- MALFUNCTIONS. nitor services effectively and to promptly that reflect the KKB corporate identity. To fully set up on the OBI platform. The Audit Committee successfully perfor- detect and correct service interruptions that end, the team boosted efficiency by med its duties in 2015 in the direction of and malfunctions. Level of service provi- eliminating dependency on agency re- IT Project Management Unit main functions defined above. sion was kept at 99% by using synthetic sources and developed websites that run Using the PMI methodology, the IT Project monitoring, periodic controls over the da- on a shared platform and that feature up- Management Unit focuses on planning the tabase, Factfinder alerts, and Splunk cent- to-date designs. Additionally, the softwa- projects submitted by all business units. INFORMATION TECHNOLOGIES ralized logging alerts. As a result of code re development process was further im- As of year-end 2015, the Unit had succes- DEPARTMENT quality improvement efforts, world-class proved by integrating all website change sfully completed 15 projects; additionally, software architecture and code quality requests into a streamlined process that the Unit continued to work on 16 projects Personal System and Software were achieved. As programmers gave top consists of security scans and accep- initiated in 2015. Having been submitted Development Unit priority to code quality, code scans were tance tests. Meanwhile, Findeks main sc- to the IT Project Management Unit by bu- System performance and architecture im- performed on a daily basis using the CAST reens were redesigned in keeping with a siness units following feasibility studies, provement efforts continued throughout code analysis tool. Security and leak tests responsive design approach. the scope of these projects have already 2015. The Unit provided mainframe sup- were conducted during the beta stage; been determined and their legal and regu- port for SNA (Systems Network Architec- hence, security gaps were avoided while KKB achieved up to 90% improvement in latory compliance have been evaluated. ture) and for IP/Socket integration, enab- running and upgrading software proces- notification and validation applications. The IT Project Management Unit then plan- ling KKB members to access CRS/CBS/ ses. Giving first priority to security, critical In order to speed up the production of ned, implemented and coordinated these LCS through a different, more up-to-date issues were resolved during leak testing; cheque reports generated as raw data projects in accordance with PMI methodo- infrastructure. The Unit plans to support as a result, the software platform beca- (PDF) through Findeks or similar platforms, logy and KKB standards. 90% improvement other technologies as soon as possible. me very secure and robust. Additionally, KKB switched to the asynchronous met- KKB achieved up to 90% improvement hod, reducing the time to prepare cheque in notification and validation reports for those with even the most ex- applications. tensive cheque history to milliseconds.

DID YOU KNOW?

↗ As a result of new investments in ↗ System performance and ↗ KKB initiated work on a cloud data warehouse environments, KKB’s architecture improvement efforts infrastructure to establish In 2015, the IT Project Management Unit data warehouse capacity doubled. continued throughout 2015. sustainable systems. successfully completed 15 projects.

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The IT Project and Change Management IT Infrastructure and Operation Unit › System Infrastructure Management Unit ensures that: all requests/projects The Limit Control System and the Corpora- carried out within KKB are handled accor- › KKB Ankara Data Center te Bureau application, which were running ding to a plan and prioritized correctly; In line with its objective to obtain Uptime on the Mainframe infrastructure, were resources are used efficiently; a common Tier IV and LEED Gold certifications, KKB transferred to a 24/7-server architecture. language and methodology are used on initiated efforts to build a new Data Cen- The disk capacity of the Oracle Exadata all projects launched within the organiza- ter to serve the finance industry. Constru- databases, which are used in open sys- tion; and project performance measure- ction of the Data Center, which will have tems architecture, was increased about ments and lessons learned become part 22,000 square meters of covered space, seven-fold; native backups were provided of organizational memory. This Unit is also commenced in July 2015 on a 43,000 for the Oracle Exadata databases, in addi- charged with keeping records of all chan- square meter tract in Anadolu Organized tion to ESC backups. ge requests related to IT; evaluating risks Industrial Zone located in Temelli, Ankara. associated with these requests; deter- The KKB Ankara Data Center is scheduled As a result of new investments in open mining the impact of these change requ- to open in May 2016. systems data warehouse environments, ests; submitting the requests and opera- data warehouse capacity doubled. Also, ting the relevant approval mechanisms; › Rendering of KKB services via the with new investments in backup environ- and transferring changes to the live site Extraordinary Situation Center for one ments, image backup architecture was in a controlled manner. The IT Business whole day moved from tape to a disk environment. Analysis and Test Management Unit pro- Under this practice, which was repeated Therefore, tape backup operations were vided analysis and testing support to all for the second time in 2015, both the Open terminated. The open source virtualization project and software change requests Systems and the Mainframe environ- platform was transferred to HP hardware submitted during the year by taking into ments were rerouted to the systems lo- infrastructure to double its capacity and “KKB IS A TECHNOLOGY HUB consideration the current functional and cated in the Extraordinary Situation Cen- a BSM (Business Service Management) technical business requirements; screen ter (ESC) in Izmir. On November 14, 2015, infrastructure was set up to enable servi- requirements and operations; their impa- all KKB services were provided from ESC ce-based monitoring. PROVIDING INDIVIDUALS ct on other systems; authorization stru- for one entire day, and all operations were cture; information that needs to be ac- conducted below the predefined RTO and cessed; target service level; performance RPO values. AND CORPORATIONS WITH criteria; domain controls in screen and web services; and data requirements. Using a test automation tool, the IT Busi- ness Analysis and Test Management Unit A TRANSPARENT, SECURE was able to run 70% of regression tests automatically, and thus made significant progress towards achieving error-free FUTURE FOR THEIR FINANCIAL software. INFORMATION NEEDS.” ALİ KEMAL CENK WE ARE RAPIDLY MOVING FORWARD AND BECOMING THE BEST

34 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 BUSINESS UNITS 35 12. BUSINESS UNITS

EFFORTS TO DEVELOP NEW STRATEGIC PLANNING AND CORPORATE achieve more transparency in their finan- Taking into consideration the wide-ran- As part of the communication plan for prediction (scoring) models, the Model ADVANCED TECHNOLOGY RELATIONS DEPARTMENT cial relationships. The Unit also works to ging needs of the sector, the Unit carried KKB and Findeks, the Corporate Commu- Development team has built new models help clients improve their risk-taking and out eight new projects and evaluated nications Unit organized national and lo- to respond to the needs and requests of SYSTEMS IN ORDER TO Banks Business Unit risk-management abilities; protect their 15 recommendations and more than 90 cal press conferences and achieved more KKB members. Placing great importance MAXIMIZE FRAUD DETECTION The Banks Business Unit is responsible for capital and financial reputation; and bo- requests to improve product functionality than 7 thousand impressions. Throughout on innovation, the Unit plans to introdu- managing KKB’s relationships with the fi- ost their sales and competitive power. in 2015. the year, the Unit carried out many inter- ce its various applications – including the AND PREVENTION CONTINUE nance industry. The Unit provides one-to- nal and external activities to promote KKB Personal Credit Rating, Personal Indeb- IN FULL FORCE. one service to banks, consumer finance Offering a wide range of products, Fin- In addition to product development ef- and its products and services. tedness Index, Cheque Index, Commercial companies, factoring and leasing provi- deks reaches out to customers through forts, the Unit contributed to providing Credit Rating, Personal Collection Score, ders, asset management companies, and its website, mobile application, custo- faster and better service to members by As CSR awareness steadily grows within Personal Inclination Score and Customer credit insurance providers that are mem- mer communications center, banks and monitoring product usage, evaluating su- the organization in line with KKB strate- Loyalty Score – to a wider audience. bers of the Risk Center, Borsa Istanbul strategic business partnerships. It also ggestions to improve products and pro- gies, the Corporate Communications Unit and the Agricultural Credit Cooperatives undertakes efforts to further increase cesses, providing communication sup- continues to implement sustainability In addition to banks and financial institu- of Turkey (ACC). A member representative the number and improve the efficiency port, and managing websites. related projects. To that end, the third tions, the Central Decision Support Sys- has been assigned to each corporation. of these channels. Designed and deve- edition of the “You Imagine, We Realize” tems applications were also made avai- These representatives communicate with loped as a new financial service platform In 2015, the Unit organized 36 internal and competition launched this year. This com- lable to factoring companies and the real all departments that use KKB and RM ser- targeting the real sector and individuals, eight external training courses – a total of petition aims to address social issues sector. As a result, decision-making that vices to explain these services and ensu- Findeks consists of four units: Marketing 44 programs. It also provided information and create a pool of social responsibility involves risks became faster, more con- re that members derive maximum benefit. Management (Individual-Corporate-Di- about KKB products and services to new project ideas by encouraging the partici- sistent and more accurate. Placing a prio- gital Marketing), Sales Channel Manage- employees during 10 orientation programs pation of young people, who are the fu- rity on data quality, KKB continues efforts The Unit obtains feedback and sugges- ment, R&D Management, and Campaign organized by the Human Resources De- ture of the country. Additionally, the Unit to establish an optimal and automated tions from the members via face-to-face Management. The Findeks Business Unit partment. Additionally, the Unit continued continued to support the activities of in- data governance structure in 2016 while visits and work groups, and KKB’s activi- conducts sales, marketing and planning to provide product support to members by ternal social clubs that aim to strengthen taking preventive measures. In 2015, KKB ties are planned accordingly. Ideas and activities for all Findeks products offered publishing a total of 16 new and revised organizational culture; encouraged volun- launched the first Fraud Detection and opinions relating to new products and to the real sector, banks, and individual product manuals. The Unit also prepared tary participation in social responsibility Prevention Service in Turkey. In 2016, KKB services are initially discussed within customers. brochures for eight new projects to boost projects; and carried our CSR projects in aims to expand the use of this service work groups; new offerings are then de- product awareness among members. collaboration with civil society organiza- and to introduce new systems based on signed and developed in line with the ne- Product Management and tions. advanced technology to maximize fraud eds of members. In addition to managing Development Unit Corporate Communications Unit prevention. member relationships, the Unit regularly The Product Management and Develop- The Corporate Communications Unit is Data Analysis and Central Decision monitors the budget, tracks product sales ment Unit consist of Product Manage- responsible for creating, maintaining and Support Systems Unit performance and carries out activities to ment, Business Development, Product protecting the brand identity of KKB and its Established in 2013, the Data Analysis and 44 product-training increase product usage. Development and Training-Documentati- sub-brands. To that end, the Unit conducts Central Decision Support Systems Unit’s courses on teams. The Unit plays a key role in eva- internal and external communication acti- activities are focused on five areas: Sta- In 2015, KKB organized 36 internal Findeks Business Unit luating the recommendations of mem- vities with marketing, digital marketing, tistical Model Development, CRM Analyti- and eight external product-training The Findeks Business Unit aims to ensure bers and employees for the development media relations, reputation management, cs, Data Quality, Central Decision Support courses – a total of 44 programs. that both individuals and the real sector and monitoring of products and services event and sponsorship management, me- Systems and Fraud Prevention. In addition can manage their own financial risks and with high added value. dia planning and buying teams. to ensuring the continuity of existing risk

DID YOU KNOW? The Findeks Business Unit carries out sales, ↗ As part of corporate communication ↗ In 2015, KKB launched the first Fraud ↗ KKB continues efforts to establish marketing and planning activities for all Findeks activities, the Corporate Detection and Prevention Service in an optimal and automated data products offered to the real sector, banks, and Communications Unit achieved more Turkey. governance structure in 2016. individual customers. than 7 thousand impressions about KKB and Findeks.

36 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 BUSINESS UNITS 37 12. BUSINESS UNITS

AS CSR AWARENESS Communications Center Unit senior management; and compiling and IN 2015, THE FINANCIAL AND Affairs Unit distributed profit in compli- ments in line with emerging needs; STEADILY GROWS WITHIN As planned in 2015, the Communications submitting information, documents, and ADMINISTRATIVE AFFAIRS ance with applicable legal requirements, made year-end estimates; and prepa- Center successfully launched the Noti- reports required by public authorities. and filed monthly, quarterly and annual red a new budget for the requests dee- THE ORGANIZATION IN LINE fication Management System. Thanks to Besides systematic budgeting and re- UNIT SUCCESSFULLY KEPT tax returns as required by the Tax Law. med appropriate. WITH KKB STRATEGIES, the new Notification Management Sys- porting activities, the Department plays a ACCOUNT OF OPERATING Meanwhile, the Department completed › Compiled income and cash flow data tem (KKBNM) and the revamped organi- key role in strategic decision-making by development of the new ERP finance and evaluated them against the expen- THE CORPORATE zational structure, service quality and promptly providing the necessary infor- RESULTS IN ACCORDANCE software. se budget; prepared a detailed income COMMUNICATIONS UNIT delivery speed increased. In 2015, the mation and reports through an effective WITH RELEVANT ACCOUNTING and expense budget by taking into ac- Communications Center received 83% of recording system. Budget and Reporting Unit count the cash flow statement prepa- CONTINUES TO IMPLEMENT total notifications sent by members, and PRINCIPLES, PROCEDURES In 2015, the Budget and Reporting Unit red at the beginning of each fiscal year; SUSTAINABILITY RELATED the response rate in this group was redu- Financial and Administrative Affairs Unit AND STANDARDS. carried out the following activities: revised these plans as necessary and PROJECTS. ced to 2.97 hours. The Complaints Hand- The Financial and Administrative Affairs › Provided assistance in formulating the monitored them for each department. ling team monitored all comments made Unit is responsible for keeping account of financial strategy, harmonizing financi- › Verified the accuracy of data in the MIS about KKB and Findeks on social media operating results in accordance with real management and control systems; systems. and strived to resolve all complaints posi- levant accounting principles, procedures preparing the budget in line with KKB’s › Undertook feasibility studies for new tively. The Unit maximized call center effi- and standards; the Unit successfully ful- policies and goals; performing budget projects and products; and oversaw ciency by using predictive dialer software filled its duties in 2015. In addition to pre- implementation and control. their management within KKB to ensure and creating an outbound team speciali- paring financial reports in line with rules › Established the principles to be taken the implementation of an appropriate zed in Findeks package sales. In 2016, KKB and regulations set forth by public aut- into account by business units inclu- strategy. plans to build a Quality Monitoring and Im- horities and sharing these reports with ded in the consolidated budget during › Measured financial performance ac- provement team to further enhance qua- related business units and the public, budget preparation; coordinated the ross the organization and advised se- lity, and raise the bar in service quality. the Financial and Administrative Affairs budget preparation process. nior management accordingly. Unit monitors collections and reports its › Reviewed the budgets prepared by bu- › Established the necessary systems to findings to relevant departments. In 2015, siness units to ensure their conformity ensure that all work is carried out sys- FINANCIAL REPORTING AND FINANCIAL the Unit paid the expenses related to the to financial plans; created a financial tematically. AFFAIRS DEPARTMENT maintenance and repairs of fixed assets, scenario by consolidating budgets; and › Played an active role in strategic decisi- The Financial Reporting and Financial Af- project expenditures, management and presented it to the Board of Directors, ons by promptly providing information fairs Department is primarily responsible general expenses; it also fulfilled its fi- explaining the rationale. and reports through an effective recor- for effective financial planning in line with nancial liabilities arising from applicable › Ensured that the budget is implemen- ding system, in addition to performing KKB’s strategic goals; in addition, it moni- laws and contracts. Additionally, the Unit ted in accordance with the goals desc- systematic budgeting and reporting tors and systematically records operating planned cash flow in a way that genera- ribed in the annual financial plan and activities. results. Other duties and responsibilities tes optimal benefit and closely followed carried out work related to the actua- of the Department include performing all changes to financial laws, rules and lized budget. cash flow analysis to derive optimum regulations, and made arrangements as › Reviewed additional and extraordinary benefit; providing necessary reports to needed. The Financial and Administrative requests submitted by the depart-

DID YOU KNOW?

↗ The Communications Center ↗ The Complaints Handling team began ↗ The Financial and Administrative The Communications Center reduced the successfully launched the monitoring all comments made about Affairs Unit successfully completed response rate for notifications received from Notification Management System as KKB and Findeks on social media. the development of the new ERP scheduled in 2015. finance software. members down to 2.97 hours.

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Procurement and Contract process. All websites controlled by vari- The IT and business processes related to Management Unit ous companies under KKB were success- all KKB activities are established and car- In 2015, the Procurement and Contract fully merged onto one platform managed ried out under the COBIT framework, the Management Unit successfully carried by KKB. As a result of effective improve- ISO 9001 standard and the Communiqué out purchasing activities in accordance ment efforts, procurement costs were re- on the Principles Applicable to Manage- with KKB’s corporate structure, audit produced significantly. ment of Information Systems of Informa- cesses and procedures. As prescribed by tion Exchange, Clearing and Settlement the decision to manage procurement pro- Entities and on the Audit of Business cesses via the ERP system, the existing RISK MANAGEMENT DEPARTMENT Processes and Information Systems. KKB system was modified to enable compati- created significant added value in its bu- bility with ERP and necessary work was Placing great importance on maintaining siness processes. carried out to ensure harmonization with superior quality standards in all its activi- the Financial Affairs Unit. To that end, the ties, KKB manages strategic, operational, KKB’s risk management policy includes system was improved in line with KKB’s financial, and reputational risks in accor- the following activities: needs. The Unit plans to launch the live dance with international risk management › Defining KKB’s primary business goals, version of the Procurement Module in Ja- standards (e.g. COSO ERM, ISO 31000). The › Identifying threats that may hinder KKB nuary 2016 after completing system tes- Risk Management Department operates from achieving its goals, ting. directly under the General Manager and › Identifying risks that may give rise to reports to the Audit Committee. Taking such threats and ascertaining the po- The Procurement and Contract Manage- into consideration KKB’s purpose for exis- tential impact and likelihood of such ment Unit updated information related tence, the Department manages risks risks, to all suppliers and created a Supplier and opportunities within the framework › Implementing risk management and Catalogue; the compiled information was of Information Security Management (ISO controls as necessary to reduce risks then transferred to the ERP system. Infor- 27001) and Business Continuity Manage- to levels determined by senior mana- “WE DEVELOP METHODS TO mation about support service providers ment (ISO 22301) standards, in addition to gement, was also updated in 2015 with all mis- enterprise risk management standards. › Establishing the coordination and com- sing documentation completed. The Unit munication network necessary for risk reviewed and indexed all KKB contracts, As part of efforts to ensure business con- management within KKB, ACCELERATE THE DECISION- took over the contracts from other de- tinuity and information security, KKB suc- › Proactively assessing new risks that partments and integrated them into the cessfully passed the renewal audits for may emerge in credit recording and existing contract structure. ISO 27001 and ISO 22301 certifications in information technology systems, and MAKING PROCESS FOR THE 2015, which were obtained in August 2014. developing recommendations on miti- In 2015, 34 contracts involving the Data In addition to process development ef- gation of potential risks, Center in Ankara and 98 contracts invol- forts in the areas of information security, › Providing KKB executives with training ving other KKB departments – 132 contra- risk management, governance and pro- programs on risk management on a re- FINANCE SECTOR, SAVING cts in total – were executed; the Procu- cess management, KKB also successfully gular basis and raising employee awa- rement and Contract Management Unit performed business continuity and disas- reness, TIME FOR EVERYONE.” managed all stages of the contracting ter recovery tests in November. İNCİ KESİCİ WE CREATE ADDED VALUE EVERY MINUTE OF OUR OPERATIONS

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INTERNAL AUDIT ACTIVITIES › Determining and regularly reviewing › Conducted correspondence activities › Provided basic training on legal matters. sful implementation of the RSA Archer GRC › In the currently pending lawsuit, non-pe- › AT KKB ARE CONDUCTED key risk indicators to measure and mo- with legal and administrative units, and Evaluated and issued legal notices and system, KKB gained a significant techno- cuniary damages in the amount of TL nitor existing risks. private/public entities. warnings. logical advantage in quality assurance ma- 2,000 is claimed from x bank, including in- IN ACCORDANCE WITH THE › Prepared legal documents (e.g. contra- › Provided support to the legal harmoni- nagement. In 2015, internal audit activities terest accrued since July 23, 2008, along QUALITY ASSURANCE REVIEW This policy is supported with written pro- cts, acquittance, letters of consent, et zation process by assessing whether at KKB were carried out according to the with the correction of KKB records. cedures and job definitions; the first-level al.) for business units and provided legal or not suppliers are eligible for support Quality Assurance Review (QAR) methodo- › The re-employment lawsuit filed on Au- (QAR) METHODOLOGY controls of risks identified by business advisory. services. logy established by the Institute of Internal gust 21, 2015 was rejected; a justified de- ESTABLISHED BY THE units in the course of daily activities; and › Prepared internal directives; issued sig- › Provided legal opinion and advice on ot- Auditors (IIA), and in compliance with the cision is awaited. the periodic evaluation of risk manage- nature circulars; and registered com- her matters and topics, as required by International Standards for the Professional › On September 8, 2015, a lawsuit was fi- INSTITUTE OF INTERNAL ment activities by senior management. pany names. KKB. Practice of Internal Auditing (Standards) led against KKB and banks that keep risk AUDITORS (IIA). › Followed up lawsuits, litigation cases, and Rules of Professional Conduct. registers, demanding correction of risk and investigations involving KKB; atten- records and alleging contradiction to Ad- COMPLIANCE AND LEGAL DEPARTMENT ded trials; and participated in discovery INTERNAL AUDIT DEPARTMENT In 2015, the BRSA (Banking Regulation and ditional Article 1 of Law No: 5411 governing processes. Supervision Agency) and TBB (Banks Asso- the establishment of the TBB Risk Center. The Compliance and Legal Department star- › Coordinated the relationship between Reporting to the Audit Committee, the Inter- ciation of Turkey) authorized KKB’s Internal The lawsuit is currently pending. ted operating as a separate division in Feb- KKB and law firms; providing guidance nal Audit Department successfully carried Audit Department to provide consulting for ruary 2015. The Department is responsible and follow-up to legal advisory firms on out the 2015 audits in accordance with the the management and evaluation of the fin- for keeping up-to-date with current laws and pending cases. Audit Plan approved by the Board of Dire- dings of the audits to be performed at the COMPETITIONS STATUS OF THE regulations affecting KKB. It is involved in all › Kept up-to-date with current laws and ctors. In line with KKB’s customer-centric corporate members of the Risk Center via EXECUTIVES OF THE COMPANY legal processes pertaining to products, pro- regulations via the Official Gazette on a strategy, the Department performed audits the Member Audits Monitoring System to jects, suppliers and procurement of services daily basis; announced new laws and on three main processes that focus on cus- be established within KKB; and then to pre- The members of the Board of Directors to ensure that all these activities comply regulations and/or legal and regulatory tomers and members: Customer & Member sent/report these findings to the Risk Cen- of KKB did not engage in any business or with applicable laws, rules and regulations. changes within the organization. Relations Communication and Demand Ma- ter Management. The Department plans to transactions that violate the non-compe- › Communicated with regulatory authori- nagement; Risk Center; and Data Exchange set up the audit findings monitoring system tition agreement, neither for themselves In 2015, the Compliance and Legal Depart- ties on legal matters that require further with Members. and start providing the consulting services nor on behalf of others. ment carried out the following activities: explanation or comments; and obtained in 2016. › Took necessary actions in light of legal opinions from relevant agencies as ne- Additionally, the Internal Audit Department and regulatory changes. cessary. carried out the following activities in 2015: REMUNERATION OF THE MEMBERS OF › Performed a legal assessment of proces- › Provided legal support to General As- › Performed root cause analysis and on- AUDITS CONDUCTED, SANCTIONS AND THE BOARD OF DIRECTORS AND SENIOR ses pertaining to products, projects and sembly and Board of Directors’ meetings. the-spot inspections as part of audit PENALTIES IMPOSED DURING THE PERIOD MANAGERS collaborations. › Evaluated and responded to complaints analysis. › Reviewed and prepared product, project from members and customers from a le- › Conducted the initial scenario-based au- The independent audit activities for prepara- KKB pays TL 10,000,000 to Board mem- and collaboration agreements; provided gal perspective. dit analyses, which will be expanded in tion of the financial statements in accordan- bers and senior management. support for the review and preparation › Followed up patent and trademark app- the future. ce with Turkish Accounting Standards were of response letters on behalf of the Risk lications for KKB’s brands; coordinated › Carried out preliminary work to enable carried out on a quarterly basis in 2015. Va- Center. contracted trademark and/or patent of- the systematic execution of licensing rious compliance audits were performed by DIVIDEND DISTRIBUTION PROPOSAL › Conducted a legal assessment of supp- fices. and inventory process audits. the contracted independent audit firm pur- lier services; prepared and reviewed ag- › Performed legal assessment of internal › Participated in the preparation of the Ma- suant to the relevant provisions of the Risk As per the unanimous resolution (No. reements. processes. nagement Statement for the second time Center Service Agreement between KKB and 2016/07) of the Board of Directors at the and audits performed on support service TBB. Results of the audits were submitted to meeting held on February 25, 2016, it was providers. the Management of the TBB Risk Center. decided to transfer the net profit remaining after setting aside the legal liabilities In 2015, the Internal Audit Department be- Lawsuits from gross income earned in 2015, to Ext- As part of efforts to ensure business continuity and gan using the RSA Archer GRC Platform › On November 28, 2013, an action for re- raordinary Reserves, and not to distribute (GRC); thus, it was able to systematically covery of damages in the amount of TL net profit to shareholders. The Board of Di- information security, KKB successfully passed document process audit findings; send the- 200,000 in total, consisting of TL 50,000 rectors also decided to distribute the net se to relevant persons; create actions; and as pecuniary damages and TL 50,000 as amount, which remained after setting asi- the renewal audits for ISO 27001 and ISO 22301 monitor findings and actions. The Internal non-pecuniary damages for each plain- de legal liabilities from 2012 and 2013 pro- Audit Department also followed up on the tiff, was filed against KKB with the alle- fits, and not distributed to shareholders, certifications in 2015. KKB Audit and Management Statement, RC gation of unfair competition and with the but retained in the Extraordinary Reserves Management Statement, Independent Au- two plaintiffs claiming at least 20% of the account, to the shareholders, and to sub- dit findings as well as findings about KKB’s earnings as compensation. The lawsuit is mit this proposal to the General Assembly. Compliance with the Risk Center Contract currently pending. 42 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 via the GRC system. Thanks to the succes- BUSINESS UNITS 43 12. BUSINESS UNITS

THE RISK CENTER DATA AND INTERNAL CONTROL DEPARTMENT KKB’s web applications against require- other financial institutions – and overdue GENDER DISTRIBUTION DEMAND MANAGEMENT ments set forth in internal and external accounts receivables. As part of member The Internal Control Department is respon- regulations to detect any contradictions/ management services, the Department DEPARTMENT PUT 11 sible for establishing and coordinating a deficiencies and plan necessary actions. executed more than 20 thousand ope- MALE 60% NEW PROJECTS TO THE sound internal control environment within rational requests and identification tran- FEMALE KKB. The main priority of the Department is In 2015, billing processes were significant- sactions; responded to a total of 1,292 40% SERVICE OF ITS MEMBERS, to ensure that all activities are carried out ly improved to ensure that sales invoices information requests from various gover- AND BOOSTED SERVICE efficiently and productively in accordance are produced in a timely and accurate nment agencies; and responded to 1,063 with KKB’s management strategy and po- manner; in addition, verification operations letters and requests from customers. In QUALITY AND CONTENT BY licies and in compliance with applicable were thoroughly performed. Further, the line with the goal of developing advanced IMPLEMENTING MORE THAN laws and regulations. All findings are re- Internal Control Department provided opi- credit risk models in the context of Basel 100 ADDITIONAL SERVICE ported to related managers and employe- nion and advisory on the new processes II, the Department started and completed es in a timely manner to ensure that short- and applications from an internal control the first phase of the Basel National Credit IMPROVEMENTS. comings are corrected properly. Staffed perspective. Data Pooling Project in 2015. This initiative by a competent team of professionals, the is sure to serve as a milestone for the Tur- Department promptly and effectively re- kish banking sector. ports the results of internal control activi- RISK CENTER – DATA AND DEMAND ties and the necessary corrective actions, MANAGEMENT DEPARTMENT depending on the severity of deficiencies HUMAN RESOURCES DEPARTMENT in internal control, to the General Manager The Risk Center’s Data and Demand Ma- and the Audit Committee. nagement Department, which consists In 2015, new human resources modules of Project and Product Development, De- – including employee databank, HR bud- In 2015, the Internal Control Department mand Management, Business Intelligen- get management, recruitment planning, successfully performed the controls plan- ce & Reporting, and Basel Data Modeling among others – were added to the Oracle ned after the risk assessment, and con- teams, provided many new value-added E-Business Suit project, which commen- EDUCATION LEVEL ducted internal investigations as required products and services to members of the ced in 2014. KKB changed its organizatio- by ISO 22301 and ISO 27001 certifications. TBB Risk Center in 2015. The Department nal structure in line with emerging needs; The Department undertook the necessary put 11 new projects to the service of its due to newly established departments, work to prepare the Management State- members, and further boosted servi- the headcount rose to 264 staff members HIGH ment, which is required by law, and repor- ce quality and content by implementing at year-end. In 2015, KKB personnel recei- SCHOOL ted its findings to the Board of Directors. more than 100 additional service improve- ved a total of 6,080 hours of training, with 16% UNIVERSITY The Internal Control Department designed ments. In 2015, the Data and Demand Ma- an average of 25 hours of training per 64% the governance implementation structure nagement Department improved the con- employee. In 2015, the employee turnover required for the continuous monitoring of tent of the statistical reports published rate stood at 6%, far below the industry the ERP system in order to create an ef- on the TBB Risk Center website. The De- average. fective and productive accounting system, partment also issued additional reports and to ensure compliance of authorizati- and bulletins, which included detailed Human Resources Profile ons and transactions with internal and analysis, such as the development and › NUMBER OF EMPLOYEES external regulations through preventive the total business volume of the Turkish 264 controls. The Department also reviewed financial sector – including banks and › AVERAGE AGE 35

› NEW HIRES IN 2015 In 2015, KKB’s Internal Control Department 61 › AVERAGE NUMBER OF TRAINING DAYS DOCTORATE DEGREE POST-GRADUATE DEGREE successfully performed the controls planned after PER EMPLOYEE IN 2015 1% 19% the risk assessment. 3 DAYS › MARITAL STATUS 39% SINGLE, 61% MARRIED

44 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 BUSINESS UNITS 45 ACTIVITIES 13. OUR PRODUCTS AND SERVICES

Service 2010 2011 2012 2013 2014 2015 THE QR CODE CHEQUE LIMIT CONTROL SYSTEM (LCS) › If the final limit is notified wrongly. Limit Control System (LCS) › SYSTEM REDUCED THE RISK If the current limit is notified wrongly. Personal Loan Rating (PLR) Pursuant to the Bank Cards and Credit False Information/Document/Declaration/Application Alert System (SABAS) OF RECEIVING A BAD CHEQUE Cards Law, the total limit of credit cards As a result of the latest improvements to that may be granted by a card issuing LCS: Internet Fraud Alert System (IFAS) BY 80%. organization to a customer, who will be- › Reduction and closure transactions, Personal Indebtedness Index (PII) gin using a credit card for the first time, which are carried out in batch, can now Cheque Report may not exceed twice their income for the be performed online. Risk Report first year, and four times thereof for the › Allocation and additional allocation second year. Pursuant to the regulation transactions can be cancelled online. GeoMIS – Map-based Reporting Service dated October 8, 2013, credit limits apply Agricultural Loans Assessment System (TARDES) to all credit card holders. With the launch of the LCS Urgent Upda- Cheque Index ting service, members became able to Central Decision Support Systems (CDSS) KKB began work on this issue in collabo- perform reduction, closure and record Commercial Credit Rating (CCR) ration with the TBB Credit Cards Working correction transactions without docu- Group, commencing the test run of the ment circulation in order to facilitate cor- Prescribed Accounts Limit Control System (LCS) in late 2013. rection of limits notified to the LCS. Address Processing Service As of January 2014, all members uploa- Cheque Status Inquiry ded customers’ credit card data into the Farmer Registry System system. PERSONAL CREDIT RATING (PCR) Rating Consultancy Designed and developed by KKB in line The Personal Credit Rating (PCR) is a nu- Warning Service with the country’s needs, the Limit Control merical indicator calculated by KKB for Tracer System runs in real-time. individual customers to predict and com- KKB Trade Registry Sharing System (TRSS) pare customers’ ability to repay the loans LCS enables credit card issuers to mana- they have obtained or will obtain from QR Code Cheque System ge the single limit application by combi- KKB-member institutions. PCR is a deci- Letter of Guarantee Status Inquiry (LGSI) ning credit card limits assigned by credit sion support product developed using a Collection Scores card issuers for each customer. statistical model; it provides a summary Inclination Scores of data pertaining to loan repayments of Starting on March 1, 2014, sanctions are customers, obtained via the Credit Refe- Factoring Invoice Pool implemented within the Limit Control Sys- rence System (CRS). IBAN Validation Service tem (LCS) under the following conditions: LCS Customer Objections Handling System (MIDES) › If there are missing records in the first PCR enables lending institutions to make National Fraud Detection and Prevention Service The Personal Credit Rating (PCR) notification file transmitted, or if a sub- rational, standardized risk decisions while Loans Analysis Portal (LAP) enables lending institutions to make sequent addition is attempted, or if FTP shortening the decision-making process rational, standardized risk decisions notification does not comply with the substantially. As a result, customers can while shortening the decision-making standards or is not made within the access loan products in a shorter time. process substantially. specified time.

DID YOU KNOW? The Limit Control System (LCS) enables credit card ↗ The Limit Control System (LCS) ↗ The Cheque Status Inquiry Service ↗ The QR Code Cheque System aims to enables credit card issuers to enables customers to make online make commerce more transparent issuers to manage the single limit application by manage the single limit application. inquiries about the status of a and secure, and boost commercial combining credit card limits assigned by credit card cheque and learn whether a cheque volumes. issuers for each customer. is in circulation.

48 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 49 13. OUR PRODUCTS AND SERVICES

SERVING THE FINANCE Various information combinations are milar systems used around the world, INDUSTRY FOR THE PAST used in the calculation of the fourth-ge- members are able to share facts, findings neration PCR. Information about the past and evidence related to crimes such as 10 YEARS, THE FALSE and present loan repayment performance forgery, fraudulence, identity theft, money INFORMATION/DOCUMENT/ of an individual (e.g. delayed repayments, laundering, and the like. initiation of prosecution, et al.) is the most DECLARATION/APPLICATION effective input. Additionally, information SABAS is structured around five main ob- ALERT SYSTEM (SABAS) about an individual’s past and present jectives: loan usage intensity and search for new › Protecting citizens and customers from ENABLES MEMBERS TO loans is also used extensively in PCR cal- risks and victimization by preventing SHARE INFORMATION ABOUT culations. use of their information, documents, MALICIOUS ATTEMPTS possessions and property by others KKB plans to develop and launch the fifth (e.g. identity thieves, money launde- TO USE WRONGFUL version of PCR in 2016. rers, impostors, swindlers, and the like). INFORMATION AND RELATED › Informing KKB members about actual or potential risks arising from malicious RISK FACTORS UNDER A FALSE INFORMATION/DOCUMENT/ attempts in order to protect them aga- DEFINED SCHEME AND DECLARATION/APPLICATION ALERT inst such risks or reduce their loss or TO TAKE NECESSARY SYSTEM (SABAS) damage. › Enabling KKB members to exchange MEASURES. Serving the finance industry for the past information under standards and rules 10 years, the False Information/Docu- that are free of personal comments, ment/Declaration/Application Alert Sys- opinions or judgment. tem (SABAS) enables members to share › Protecting KKB members from beco- information about malicious attempts to ming victims of crimes, which may use wrongful information and related risk have more destructive consequences “WE UNDERTAKE PROJECTS factors under a defined scheme and to than that of the malicious attempts take necessary measures. described under SABAS. The information sharing technique › Enabling KKB members to minimize the- developed by KKB sets SABAS apart Thanks to the information sharing tech- ir risks, thanks to SABAS, while protec- THAT MAKE A DIFFERENCE from other similar systems used nique and platform, developed by KKB ting natural persons and legal entities WITH OUR HIGHLY QUALIFIED around the world. and setting SABAS apart from other si- from becoming victims of such attempts. EXPERT TEAMS.“

ABDULLAH BİLGİN INNOVATIVE PRODUCTS FOR THE FUTURE

50 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 51 13. OUR PRODUCTS AND SERVICES

THE PERSONAL INTERNET FRAUDS ALERT counterfeit documents to withdraw the › Improving the quality of the lending de- › Findeks Credit Rating ctronically via the Findeks platform with › INDEBTEDNESS INDEX SYSTEM (IFAS) stolen money. In online fraud, perpetra- cision systems of banks. Limits, risks, past payment performan- individuals and the real sector since 2014. tors generally open deposit accounts ce and credit card payment details of (PII) IS A SCORE-BASED using false identification documents in The Personal Indebtedness Index (PII) the respective individual In 2014, KKB further enriched the content RISK INDEX DEVELOPED BY Scammers can obtain customers’ onli- order to withdraw the money they have was developed to predict those persons › Number of financial institutions which of the Risk Report and added the fol- ne banking usernames and passwords transferred from customers’ bank ac- who will become excessively indebted made the notification lowing information: KKB TO INTRODUCE A NEW and use this information to transfer mo- counts. Data pertaining to such accounts within one year following the date of the › Total number of credit accounts › Worst case in the repayment history RISK PERCEPTION TO THE ney to their own accounts, which they are shared within SABAS so the relevant inquiry, even if they are not expected to › Total limit and balance data › Longest overdue period to date usually open using counterfeit identity departments of corporate members can become insolvent within the same period. › Date of the last loan utilization › Liabilities of credit card holders, outs- BANKING-FINANCE INDUSTRY documents. This crime has become very access this information. Hence, informa- › Number of overdue credit accounts tanding balance under prosecution, AND TO ENABLE BETTER common of late. Even though banks use tion used previously for fraudulent purpo- In addition to the definition of “non-perfor- › Total amount of overdue balance credit utilization ratio, balance of outs- PREDICTION OF POTENTIAL highly advanced security systems to pre- ses and detected by IFAS can never be ming loan” (i.e. persons who failed to pay › Longest overdue period to date tanding installments vent such attempts, criminals continue to used again. three installments in succession, persons › Details of any loan under prosecution › For consumer loans: outstanding ba- RISKS. develop new methods to bypass these who are under legal prosecution, persons › Leasing – Factoring combined data lance under prosecution, credit utili- systems. PERSONAL INDEBTEDNESS INDEX (PII) who are classified as uncollectible ac- › Customer’s credit score percentile and zation ratio, number of installments, count), which Personal Credit Rating and percentile rankings across Turkey amount of installments, and the like. Developed by KKB, the Internet Frau- The Personal Indebtedness Index (PII) is a similar risk prediction models try to fore- ds Alert System (IFAS) primarily aims to score-based risk index developed by KKB cast, PII also detects signs of “excessive The Risk Report also shows repayment With its new design and content, KKB’s enable communication between member to introduce a new risk perception to the indebtedness.” PII was developed to iden- performance for each loan over the past Risk Report surpasses other similar re- corporations regarding Internet frauds. To banking-finance industry and to enab- tify persons who have an outstanding 18 months, while providing an overview of ports published around the world. that end, requests to block an account in le better prediction of potential risks. PII non-guaranteed debt higher than TL 250 repayment performance in the financial the case of money transfer scams can aims to identify persons who are inclined and to predict excessive indebtedness. sector. The Report contains not only ne- be transmitted via IFAS. This way, a more to run up excessive debts, even though gative information, such as overdue pay- effective communication can be establis- they may not have shown any signs of rements or records under prosecution, but hed between corporations and all kinds payment problems in the past. RISK REPORT also positive information, such as timely of information regarding transactions can repayment of loans. Therefore, the Risk be stored in the data processing system. The objectives of PII include: The Risk Report is a KKB product that Report offers a significant advantage for › Establishing an early warning system shows the loan repayment performance persons who pay off their debts by the Given that money transfers can beco- by identifying those persons who use of natural persons and legal entities. due date. me quite complex, an automatic graph- a new loan to pay off an existing debt drawing feature was added to the sys- and who therefore are increasingly in- The credit registry data owned by KKB Since September 2012, KKB has also sha- tem to facilitate the investigation of such curring more debt, even though they consists of customer information shared red the Risk Reports with report-issuing incidents. This feature is used to create may not have shown any signs of re- between KKB’s members. The Risk Report, persons/institutions and third parties a flow diagram for each money transfer payment problems in the past. which is based on this data without any authorized by these issuers through bank scam. › Ensuring responsible lending. modifications, contains the following in- branches. In addition to the financial in- › Enabling users to make more accurate formation: dustry, the Reports have been shared ele- The Internet Fraud Alert System (IFAS) Another important feature of IFAS is that decisions concerning matters such as can be integrated and operated in it can be integrated and operated in pa- determining credit limits, risk-based parallel with SABAS. rallel with SABAS. Criminals generally use pricing, and the like.

DID YOU KNOW?

↗ The Internet Frauds Alert System ↗ The Risk Report shows repayment ↗ The Personal Indebtedness Index Requests to block an account in the event of money (IFAS) provides prevention and performance for each loan over the (PII) aims to identify persons who transfer scams can be transmitted via IFAS. protection against Internet scams. past 18 months. are inclined to run up “excessive debt.”

52 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 53 13. OUR PRODUCTS AND SERVICES

THE CHEQUE REPORTS CHEQUE REPORT › Number and amount of cheques disho- KKB began collecting information on post- The following reports can be generated The GeoMIS Corporate application allows PRODUCED BY KKB SHOW nored during the last 1-, 3- and 12-month dated cheques and open cheques from through the GeoMIS Map-based Repor- evaluation of limits, risks, Commercial The enactment of the Law Amending periods its members. As a result, the Cheque ting System: Credit Rating (CCR) and bad cheque data PAYMENT HISTORY OF Cheque Law No. 6273, which was promul- › List of dishonored cheques, limited to Report now contains information about › Standard Report, which contains port- pertaining to accounts contained in the CHEQUE ISSUERS TO ENABLE gated in Official Gazette No. 28193 (Repe- the most recent 50 cheques issuers’ postdated and open cheques, in folio data of an institution pertaining to Corporate Bureau (CB) and display of this ating) dated February 3, 2012, abolished › Number of open cheques remaining un- addition to bounced and paid cheques. a specific period. data on the map on the basis of cities and CHEQUE BEARERS TO MAKE the sanction imposed on issuers of boun- paid or non-dishonored › Trend Report, which enables the trac- even towns. Corporate members are able SOUND DECISIONS. ced cheques and ushered in a new era › Number and amount of postdate king of changes in portfolio data of an to view their own data, track the chan- in the Turkish economy in terms of credit cheque remaining unpaid or non-dis- GEOMIS – MAP-BASED REPORTING institution within a certain time period. ges and development of their data, and risk management. honored SERVICE › Benchmark Report, in which portfolio to compare it with the industry and the › Number of cheques unreturned to ban- data of an institution can be evaluated competition. Platforms through which information king system GeoMIS, winner of the “Oracle 2014 Inno- against industry data, TÜİK (Turkish Sta- required for proper management of risk vator Excellence Award,” is a location-ba- tistical Institute) data and a selected Reports generated by the system contain and for accurate decision making by a The Cheque Report enables tracking of sed data reporting system that proces- benchmarking group. information about outstanding balances, cheque bearer whether to accept the the cheque payment performance of an ses address information contained in number of accounts, average score, cre- cheque aim to protect both the cheque account holder, whether positive or ne- KKB data and converts it into geographic The GeoMIS service is provided by KKB th- dit risk/bank branch, and the number of issuer and bearer. gative. The report also shows how many coordinates. GeoMIS enables viewing of rough the map-based reporting platform creditor firms/bank branches. banks have issued cheque books to the all types of statistical data on the map by via the Oracle database and application The Cheque Report Presentation System account holder and gives an idea about assigning different colors to different ca- servers. Data positioning on the map is As with other GeoMIS applications, the was introduced by KKB in April 2012 to the credibility of the person in question. If tegories, which are broken down by city done using geo-coding. content of GeoMIS Corporate is conti- make the cheque more secure as a com- the Cheque Report is used at the time of and province. nually improved. In its first year, GeoMIS mon instrument of payment. The system cheque acceptance, it is possible to pre- The user of the application and the insti- Corporate’s data set was expanded with offers a service that provides the cheque dict the probability of the cheque boun- Comprised of various components, Geo- tution where they work are identified by the addition of information about chequ- payment history information needed by cing with up to 90% accuracy. MIS does not only consist of a database, the IP address and the entire display is es notified to KKB. GeoMIS Corporate is cheque bearers about the cheque issuers numerical map and reports. GeoMIS can based on that institution. used by many business units, including in order to make sound decision via the The Cheque Report is receivable via mo- also be effectively used as a decision allocation, marketing, risk management, Cheque Reports the system produces. bile devices or online. Reports can be support system because it visualizes GeoMIS Personal collection, and credit policy, for a wide required by real sector players from the common database processes, such as In July 2013, the members of the Credit range of purposes. Thanks to the system, the past cheque counter party at every platform of com- inquiries and statistical analysis, combi- Reference System (CRS) started using the payment data of a cheque issuer is ac- mercial transaction. Through online re- ning them with geographic analyses pro- GeoMIS application, which had only been cessible. The Cheque Report contains the port applications, real sector players can vided by the maps. Thanks to this capabi- covering the inquiries done by CRS users AGRICULTURAL LOAN ASSESSMENT following information: obtain a Cheque Report or a Risk Report lity, GeoMIS renders report outputs much since the second half of 2009. SYSTEM (TARDES) › Banks where the customer has cheque of a debtor from said debtor or, with the- more valuable, providing output that bo- accounts ir approval, directly from the KKB inquiry osts productivity and risk models. In 2014, the data set of the GeoMIS appli- In 2013, KKB launched the Agricultural › Number of cheques presented since system to control their credit risk. KKB has cation was further enriched with the addi- Loan Assessment System (TARDES), whi- 2007 set an example worldwide with its unique Through this system, marketing teams tion of personal loan portfolio data. Since ch contains a data sharing, system-ready › Number and amount of cheques paid infrastructure, which enables the reques- can obtain comprehensive information that time, the application has also served infrastructure, for banks and financial ins- upon presentation ting of Cheque Reports by obtaining onli- about customer acquisition processes of as GeoMIS Personal. titutions seeking to extend loans to the › Number and amount of cheques boun- ne consent from third parties; moreover, loan products and demographic chara- agricultural industry. ced and still unpaid since 2009 the system is integrated with all banks in cteristics and score distribution of their GeoMIS Corporate & Cheque › Number and amount of cheques boun- Turkey. portfolios. They can also view their re- GeoMIS Corporate & Cheque is a product TARDES provides an important platform ced but subsequently paid since 2009 ports in detailed breakdown (e.g. by dist- of the GeoMIS family. In August 2014, KKB and information service to financial ins- › Date of first cheque presented In 2013 and 2014, the following was added rict) and in comparison with competitors’ expanded the data set of the GeoMIS fa- titutions, enabling them to make syste- › Date of first cheque presented and dis- to enrich the content of the Cheque Re- data. Loan teams can compare their port- mily by adding specific information about matic agricultural loan evaluations based honored port: folios with the industry and with selected small/medium/large enterprises and the on accurate, up-to-date data, without the › Date of last cheque presented and dis- › Cheque Index competitors through the reports genera- commercial segment. As a result, GeoMIS need for specialist teams. honored › Table showing the lowest, highest and ted by GeoMIS and review risk distribution Corporate & Cheque provides detailed re- › Date of last cheque paid upon presen- average amounts of cheques by year and scores on a location basis. ports on the basis of cities and towns. With the Cheque Report, positive or tation › Data of open cheques in addition to col- negative developments in the cheque › Number and amount of cheques paid lection guarantee cheques payment performance of the account during the last 1-, 3- and 12-month pe- holder can be tracked. riods

54 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 55 13. OUR PRODUCTS AND SERVICES

TARDES HELPS FINANCIAL TARDES offers KKB members the following pean Bank for Reconstruction and Develop- corporations can use the Cheque Index sion Support Systems (CDSS) are effe- As financial institutions take into consi- INSTITUTIONS SAVE TIME benefits: ment (EBRD), income and maturity calculati- before engaging in a cheque transaction ctively used by both the real sector and deration a number of variables during the › Reliable, up-to-date and detailed cost ons have become much easier. instead of attempting to interpret the de- the finance industry. CDSS can be used lending process, loan repayment history AND MANPOWER BY tables created by expert staff; tailed information in the Cheque Report. in a number of business areas, such as is an important variable. CCR fills an im- PROVIDING THEM WITH › Simultaneous evaluation of different TARDES helps financial institutions save time The Cheque Index enables companies to: Application Management, Customer Ma- portant gap by providing the information production and/or cultivation by the and manpower by providing information › Have an idea about the reliability of nagement, Limit Management, and Colle- needed to evaluate the loan repayment INFORMATION COMPILED same producer; compiled and evaluated by a professional, cheques, which they accept as a gua- ction Management, where decisions must behavior of legal persons. As a result, AND EVALUATED BY A › The ability to extend loans with diffe- impartial and expert team. It also enables fi- rantee, be constantly updated and optimized to monitoring the external behavior of loan rent maturity dates depending on the nancial institutions to establish a standard, › Make consistent predictions as to adapt to the rapidly changing business customers becomes easier. PROFESSIONAL, IMPARTIAL types of production and agricultural product-based evaluation system internally. whether the cheque will be paid by the environment. CDSS features the following AND EXPERT TEAM. products; As a result, TARDES significantly contributes maturity date, and advantages: The Commercial Credit Rating (CCR) is › Evaluation of agricultural production to the development of the agricultural in- › Minimize any financial loss they may › Requires minimal IT resource since te- calculated statistically through analysis by taking into account a producer’s dustry. incur if the cheque bounces. chnical infrastructure is provided by of detailed data contained in the Risk Re- non-agricultural income and expenses; KKB. port. CCR provides the following advanta- › Inclusion of personal information as TARDES is an application that will increase › Shortens integration processes to reali- ges: well as production and income-expen- the number of banks extending agricultural CENTRAL DECISION SUPPORT SYSTEMS ze projects, thanks to the advantage of › Risk decisions made by lending institu- se data of other persons or entities that loans area. The application will boost the vo- (CDSS) using an existing service. tions can be evaluated more accurately. may impact loan repayment in a single lume of agricultural loans in the country, faci- › Reduces costs with per-transaction › A standard can be established in the application; litate risk management, and guarantee con- Serving as a data sharing platform since pricing. commercial segment. › The ability to offer a general credit limit tinuity of the data gathering and updating its founding, KKB now enables execution › Enables business units to make deci- › Decision-making processes are shorte- taking into account a producer’s agri- efforts currently conducted in the long term. of the entire decision automation by me- sions independently of the IT Depart- ned so that customers can access loan cultural and non-agricultural, commer- ans of cloud technology via KKB through ment, thanks to the new generation products more quickly. cial and personal activities and ability the Central Decision Support Systems Strategy Design Studio. to repay; CHEQUE INDEX (CDSS), which began to be offered to the › Compiles and consolidates KKB data KKB offers its corporate members two dif- › Prevention of the extension of loans members in 2014. used in CDSS processes, which use ferent Commercial Credit Rating models, that exceed a producer’s need and abi- The Cheque Index summarizes cheque KKB’s know-how and technology. derived from data modeling carried out lity to repay; using habits and the reliability of a CDSS is a decision automation system › Conducts inquiries on all reports recei- on the Corporate Bureau System. › Evaluation of short-, medium- and long- cheque issuer while serving as a risk indi- used by institutions that delivers every ved from KKB through inquiry. term loans all-in-one; cator in graphic form. The Cheque Index is type of decision – including application › Minimal IT and staff investment requi- based on a score for the market, which is management, risk/collection, credit moni- PRESCRIBED ACCOUNTS red by lending institutions; derived from the cheque payment data of toring, early warning services and the like COMMERCIAL CREDIT RATING (CCR) › Automatic data input from the Farmer natural and legal persons. – related to the services provided by them With this service, information about Registry System included; to their customers, in a fast, efficient and The Commercial Credit Rating (CCR) is an prescribed deposit accounts, loan par- › A flexible lending infrastructure tailored The Cheque Index evaluates the cheque standardized manner. The most impor- evaluation of the creditworthiness of a ticipation funds, trust and accounts re- to financial institutions, enabling them payment behavior of legal entities and tant downside to these systems, despite firm in order to facilitate commercial cre- ceivables are collected from banks that to enter models and parameters into natural persons as a measurable factor. their many advantages, is that purchase, dit analysis. CCR is notified to member are members of TBB (Banks Association the system in line with their own credit If there has been a problem, the Cheque installation and operational costs can be banks and other financial institutions as of Turkey) and TKBB (Participation Banks policies; Index’s calculation reflects the number significant. part of inquiries made through the Corpo- Association of Turkey); consolidated; and › The capability to send notification ema- and amount. The cheque bearer can ea- rate Bureau, which keeps record of credit published on a common platform (i.e. the ils to users as the maturity date of a sily see the standing of a cheque issuer Delivering this service centrally, KKB aims histories. website) for easy access by customers. product, for which a limit has been pro- on a simple diagram and compare his/her to provide institutions with quick, low- posed, approaches; position with other cheque issuers. cost access to these systems. CCR is based on demographic data, loan Prescribed Accounts information is pub- › Time savings by blocking applications and collateral data, and cheque payment lished every year in early February and for products that do not qualify for a The Cheque Index, calculated statistical- KKB enhances any information sent by performance to predict to what extent an can be accessed by financial services loan extension; ly through an analysis of detailed data a member when a decision is required, enterprise will fulfill the repayment requi- customers until June. › Evaluation of a producer’s loan requ- in the Cheque Report, facilitates interp- processes it through CDSS, and then rements of a loan obtained from a mem- ests for non-agricultural purposes th- retation of the reports and sound deci- sends the final decision to that member. ber. CCR measures a firm’s default proba- The Cheque Index evaluates cheque rough the personal loan category. sion-making, hence ensuring time and This way, members can benefit from this bility within 12 months following the date payment behavior as a measurable resource savings. The Cheque Index is state-of-the-art technology, which was of inquiry; therefore, if the CCR is high, then factor. If there has been a problem, Thanks to the Agricultural Loan Assessment based on statistical data obtained throu- designed to reduce installation costs it means that default probability is low. the Cheque Index’s calculation System, developed jointly by the Frankfurt gh the analysis of detailed information and implementation time. Central Deci- reflects the number and amount. School and KKB, and sponsored by the Euro- pertaining to cheque history. Therefore,

56 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 57 13. OUR PRODUCTS AND SERVICES

WITH THE CHEQUE ADDRESS PROCESSING SERVICE CHEQUE STATUS INQUIRY STATUS INQUIRY SERVICE, The address formatting infrastructure The Cheque Status Inquiry service was INSTITUTIONS CAN VERIFY used in GeoMIS, the map-based reporting developed to prevent cheque fraud, THE AUTHENTICITY OF system launched in 2013, started to be which has been on the rise of late. With made available as a standalone service this service, one can find out whether a CHEQUES ACCEPTED in line with the needs of KKB members in cheque is in circulation by making an on- AS GUARANTEE OR FOR 2014. line inquiry about the status of accepted cheques. The service makes it possible COLLECTION BY INQUIRING This application contains a control to up- to discover whether the cheque is in cir- ABOUT THE BANK CODE, date address information, such as street culation through an online inquiry via the BRANCH CODE, CHECKING names, towns, and similar details by ge- issuing bank. ocoding the customer address data with ACCOUNT NUMBER, AND the bank, adding the geocode data to the With the Cheque Status Inquiry Service, CHEQUE ROW NUMBER. address data, and accurately defining the the institution can inquire the bank code, newly added addresses into the system. branch code, checking account number and cheque row number of the cheques The Address Processing Service provides accepted as guarantee or for collection, the following benefits: and the status of the cheques. › Collective Processing of Customer Add- resses: Existing bank customer information can be formatted; changed informa- FARMER REGISTRY SYSTEM (FRS) tion such as street name, district, and the like are updated and missing data The Farmer Registry System (FRS) requi- completed; and geographic coordinates res all farmers to be registered in a cent- are added to the address data (geoco- ral database in order to monitor, inspect, ding). report and inquire about agricultural sup- › Sharing the Up-to-date Address Databa- port, and to ensure evaluations are sound “WE MAINTAIN SUPERIOR se with Members: In order to ensure ac- and accurate. curate data entry of new addresses, Tur- key’s address database is uploaded into FRS is a combined system of systems, QUALITY STANDARDS IN ALL the member system and integrated with used to keep records of personal infor- the address entry screens. KKB assigns mation and assets (e.g. agricultural land, coordinates to each address entered. livestock, inputs, and the like) of farmers OF OUR ACTIVITIES.” KKB also provides a reverse geocoding actively engaged in agricultural activities, service, the process of back coding of a along with product design and average SERDAR ÇOLAK point location (i.e. latitude, longitude) to agricultural productivity. FRS enables the a readable address or place name. implementation, monitoring and inspecti- › Mapping Service: Any specific data rela- on of agricultural support programs; it is ting to a member can be mapped using also used for the development of agricul- a function run by KKB. tural policies. WE PROVIDE SUPPORT TO THE ENTIRE FINANCIAL INDUSTRY

58 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 59 13. OUR PRODUCTS AND SERVICES

THE TRADE REGISTRY FRS Inquiry Screens enable those KKB designed for this application. Users can cerning their customers in the Corpora- KKB Inclination Scores aim to: LCS CUSTOMER OBJECTIONS HANDLING › SHARING SYSTEM (TRSS) members who do not use the TARDES loan make online inquiries using banks’ update Bureau and newly established firms. Enable KKB members to reach the best SYSTEM (MIDES) module to inquire about FRS data, compi- ted letter of guarantee databases, which The related notification file is sent to prospects rapidly with appropriate ENABLES FINANCIAL led by the General Directorate of Agricul- are integrated with the system. the FTP address. strategies for product sales. LCS MIDES provides a platform for KKB INSTITUTIONS TO ACCESS tural Reform and used to update, inspect, › Allow members to see more compre- members to handle customer complaints and monitor farmer related data. LGSI covers all letters of guarantee issued Institutions using the Proactive Notifica- hensive data via a single score with related to incomplete or incorrect infor- UP-TO-DATE TRADE REGISTRY to enterprises based in Turkey. In this on- tion service are now able to determine lesser operational burden. mation shared via the Limit Control Sys- INFORMATION ABOUT line/real-time application, data flow from/ the daily notifications they want to rece- › Save time thanks to easy identification tem. LETTER OF GUARANTEE STATUS INQUIRY to the banks that issue letters of guaran- ive by entering specified criteria into the of target masses on a product basis. THEIR CUSTOMERS, AND BE (LGSI) tee is achieved through a web-based ser- system. › Accelerate sales through value added If a customer thinks that the information PROMPTLY NOTIFIED OF ANY vice integration. to sales and marketing operations. shared via LCS is incomplete or incorrect, CHANGES. The Letter of Guarantee Status Inquiry › Provide more productive, efficient ma- they can initiate the objection process in (LGSI) service enables customers who COLLECTION SCORES nagement in making products available. LCS MIDES by using the reference num- have received a letter of guarantee from a TRADE REGISTRY SHARING SYSTEM (TRSS) ber generated for the inquiry. Regarding bank to cheque whether the letter of gu- With Personal Credit Rating data shared In 2015, KKB began calculating Inclination complaints submitted by members, the arantee is still valid for the issuing bank. The Trade Registry Sharing System (TRSS) with members for some time now, KKB is Scores for personal loans by modeling process runs between objecting and The service allows for inquires using pa- enables financial institutions to access able to precisely predict default probabi- loan and loan application data pertaining responding parties through LCS MIDES rameters such as bank name, branch up-to-date trade registry information lity of customers within one year. Thanks to the personal portfolio contained in the screens. If the responding member rep- name, row number, amount, currency and about their customers, and be promptly to the Personal Indebtedness Index (PPI) data warehouse using statistical metho- lies to an objection with a value lower expiration date. notified of any changes. created recently, KKB members have gai- ds. KKB plans to calculate Inclination Sco- than the LCS value, then the process con- ned the ability to assess the risk of custo- res for all personal products in the coming tinues via the LCS Urgent Updating screen Institutions using the LGSI service save Through TRSS, users can access amend- mers running up excessive debt over the period. with the responding member updating time and cut operational costs by instant- ments published in the Trade Registry Ga- long term. KKB develops high value-added their reply. ly inquiring about the validity of a letter of zette on a daily basis using their preferred products by supporting the data-sharing guarantee without the need to contact method. The application allows for both service it offers to members with analytic IBAN VALIDATION SERVICE The LCS MIDES was developed to respond the issuing bank. individual and multiple inquiries as well as scoring models. In 2015, KKB launched the to customer objections in a quick and the use of proactive notification methods. Collection Scores service, a new addition Fast, secure and accurate money trans- clear manner, and to carry out all related Thanks to the system, which allows the to its portfolio of value-added products. fer via financial institutions is becoming communications in accordance with the validity of a letter of guarantee to be che- › The Multiple Inquiry option enables The Collection Scores service is used to increasingly important for customers in standards. It aims to shorten the objec- cked instantly, fraud attempts can be pre- users to retrieve information about a calculate the risk of further delaying pay- today’s fast paced business world. tion process and increase customer sa- Institutions using the Letter of vented as well. number of customers at once. Users ment or defaulting on a loan by a customer, tisfaction. Guarantee Status Inquiry (LGSI) can either retrieve information about who has already delayed repayment, in the KKB’s IBAN Validation Service enables service save time and cut operational KKB member institutions and corporati- all types of announcements or select near future. The Collection Scores service customers to view masked data – such as costs by instantly inquiring about ons can use the LGSI service, which ma- announcements in a specific category. was launched initially for credit cards, but name/surname, company name – about the validity of a letter of guarantee inly targets public entities and instituti- › The Proactive Notification service sen- KKB plans to expand this service to other the real person or the legal entity that without the need to contact the ons that accept a large number of letters ds members daily notifications about credit products in the coming year. owns the IBAN, thus helping customers issuing bank. of guarantee, via web screens specially selected types of announcements con- avoid incorrect money transfers.

INCLINATION SCORES KKB’s IBAN Validation Service aims to: › Prevent money transfer mistakes, KKB’s Inclination Scores seek to predict › Cut operational costs, likelihood of persons to use a new credit › Reduce time costs, product in the future based on their past › Provide customers with a secure tran- behavior and their performance under the saction platform, and The LCS Customer Objections Handling System (MIDES) current credit products. › Increase customer satisfaction. was developed to respond to customer objections in a quick and clear manner, and to carry out all related communications in accordance with the standards.

60 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 61 13. OUR PRODUCTS AND SERVICES

THE FRAUD ATTEMPT FRAUD ATTEMPT DETECTION AND › Facilitating strategic decision-making DETECTION AND PREVENTION PREVENTION SERVICE by providing reports and information related to risk management, credit poli- SERVICE AIMS TO MINIMIZE The objective is to create a national data- cies, marketing and campaign manage- LOSSES INCURRED BY base of loan application data provided by ment, and collection practices. member institutions and offer protection › Offering tailored data and content and FINANCIAL INSTITUTIONS AS to the entire industry. ease-of-use via the Internet. A RESULT OF APPLICATION The Fraud Attempt Detection and Preven- Using different parameters and filtering FRAUD. tion service provides for a much safer options on the reporting screens, the Lo- operational environment when compared ans Analysis Portal can produce about to anti-fraud controls undertaken by each 175 million different reports on 2.5 billion institution separately. This project aims to lines of data. Thanks to its state-of-the- minimize losses incurred by financial ins- art infrastructure, LAP generates these titutions as a result of application fraud. reports very fast. The Fraud Attempt Detection and Preven- KKB’s corporate members who are also TOTAL NUMBER OF tion service will run as a cloud-based Credit Reference System (CRS) users can application via KKB, system participation perform the following analyses on LAP: PERSONAL CREDIT will be easy and low-cost for financial › Analysis of newly opened accounts SCORES GENERATED institutions. Another great advantage is › Analysis of current portfolio that institutions will share the licensing › Risk analysis expenses. The system is being designed 366 MILLION to process both exclusive and shared ru- The Credits Portfolio Analysis system ge- les and data. nerates reports using data derived from the monthly notifications of CRS mem- The new system will initially be activated bers. The system contains data pertaining TOTAL NUMBER OF CHEQUE for lending institutions. Subsequently, it is to the past 13 months and report results REPORTS PRODUCED expected to expand and become a natio- are visually represented in diagrams. nal information-sharing platform with the participation of different industries. With this application, an institution can: 21 MILLION › Track the current state and development of its own loan portfolio; LOANS ANALYSIS PORTAL › Compare data related to different portfolios, such as amount, volume, over- The Loans Analysis Portal (LAP) is an inte- due payments and collections, with ractive reporting system that allows data competitors; reporting on the portfolio of any kind of › Use all this data to establish and test installment loan, overdraft account and its risk management policies. credit card products owned by natural persons; their payment performance; and comparison with the benchmarking group selected in the GeoMIS Individual application and with the sector as a whole. LAP’s primary advantages to users include: › Showing the changes in an institution’s loan portfolio on a monthly basis and The Loans Analysis Portal features over time. current information about an institution’s loan portfolio as well as its development over time.

62 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 63 14. OUR PRODUCTS PROVIDED TO TBB’S RISK CENTER

Service Name 2013 2014 2015 Credit Limit – Credit Risk Inquiry and Information Sharing Sharing Information about Protested Bills Bounced Cheque Inquiry and Information Sharing Individual Cheque Inquiry Risk Center Customer Report Service Credit Reference System (CRS) Corporate Bureau System (CBS) Personal Customer Objections Handling System (Personal MIDES) Corporate Customer Objections Handling System (Corporate MIDES) CRS Data Verification System Cheque Report Raw Data Presentation Risk Report Raw Data Presentation Duplicate Cheque Warning System Bounced Cheque Warning System Inquiry and Warning about Entities Prohibited from Participation in Tenders Data Sharing About Derivative Transactions Data Updating Application Data Validation and Sanction Application “WE CONTINUALLY IMPROVE Acceptance & Rejection Notifications Related To Loan Applications Sharing of Internal Rating Scores Credit Rating Agencies and Sharing of Rating Scores OUR PRODUCTS AND Government Agency Services and Customer Data Requests Member Requests Management Service SERVICES TARGETED AT Risk Center Bulletins and Statistics Publishing Services Paid Bills Inquiry Service Sharing Information about Cheques under Interim Injunction THE FINANCE SECTOR TO Sharing Information about Companies That Have Declared Bankruptcy/Suspended Bankruptcy/Debt Composition Sharing Information about Customers Prohibited from Using Cheques FACILITATE EFFECTIVE RISK MANAGEMENT.” OSMAN SOYSAL WE SET AN EXAMPLE WITH OUR EXCEPTIONAL WORK

64 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 65 14. OUR PRODUCTS PROVIDED TO TBB’S RISK CENTER

IN THE BOUNCED CHEQUE CREDIT LIMIT-CREDIT RISK INQUIRY AND SHARING INFORMATION ABOUT RISK CENTER CUSTOMER REPORT SERVICE CREDIT REFERENCE SYSTEM (CRS) merger, addition or other alteration and WARNING SYSTEM, INFORMATION SHARING PROTESTED BILLS opens the data to sharing with the other Through this service, natural persons and Credit Reference System is an informati- members. In addition, the information INFORMATION ABOUT Risk Center members submit and share Members notify the Risk Center about legal entities can obtain reports about on-sharing platform, through which deta- contained in the risk reports comes from CHEQUES RECORDED AS information about credit limits extended bills disputed for non-payment and bil- their own financial data, which has been iled data about personal loan products is this data pool. to natural persons and legal entities and ls relieved from dispute once every 15 consolidated by the Risk Center and sha- collected from the members of the Risk DISHONORED BY BANKS AND associated credit risk, in addition to ac- days. Personal information, address and red with members of the Risk Center. Th- Center and then shared with banks and With the CRS Urgent Updating applicati- THEIR ACCOUNT HOLDERS, counts receivables to be liquidated, via amount stated on the bill are recorded in ree types of reports are available: financing companies. on launched in 2014, members are now this system on a monthly basis. the system. enabled to perform processes such as AND INFORMATION ABOUT Information is collected from members Report on Credit Limit-Credit Risk- Banks and financing companies that are updating of personal details in addition CHEQUES PAID AFTER BEING under the following categories: Notifications sent by banks are consoli- Receivables to Be Liquidated members of the Risk Center can access: to the financial data of loan accounts, de- RECORDED AS DISHONORED › Credit limit: Credit limit extended to real dated and shared collectively with Risk This report contains information submit- › Data on all open accounts under which letion of guarantors and additional card persons and legal entities for cash and Center members via the File Transfer Sys- ted by leasing, factoring and financing a consumer is “debtor” and “guarantor”; users, deregistration, and the like without AND THEIR ACCOUNT non-cash loans, funds, and other ac- tem. companies, banks, and asset manage- › Data on all closed accounts of the last waiting for the next month’s notification. HOLDERS ARE NOTIFIED TO counts receivable activities. ment companies that are members of the five years; In 2015, daily notification to the CRS will › Credit risk: Receivables arising from Risk Center about loans allocated and re- › Data on applications made during the be enabled, so that the data shared will THE RISK CENTER ON A DAILY cash and non-cash loans and funds BOUNCED CHEQUE INQUIRY AND ceivables to be liquidated. Three versions last six months; and be much more up-to-date. BASIS, REGARDLESS OF THE extended or mediated to natural per- INFORMATION SHARING are available: Detailed Report, Summary › Loan repayment performance data CHEQUE AMOUNT. sons and legal entities, other accounts Report and Non-Performing Loans Report. pertaining to the last 36 months online The Credit Reference System’s benefits receivable activities, and associated › In the Bounced Cheque Warning Sys- within several seconds via CRS inquiry. include: interest and profit. tem, information about cheques recor- Cheque Report › Minimizing personal loan risk. › Accounts receivables to be liquidated: ded as dishonored by banks and their This report contains information con- With the ability to access any information › Encouraging personal loan customers Loans and other receivables classified account holders, and information about solidated since 2009 about dishono- regarding overall credit risk and repay- to make their repayments regularly. as “frozen” receivables by banks. Rece- cheques paid after being recorded as red cheques, cheques paid after being ment habits of any consumer by using › Spreading use of personal lending pro- ivables to be liquidated by leasing, fa- dishonored and their account holders recorded as dishonored, and cheques CRS, financial institutions can make any ducts to the wider public. ctoring and financing companies, and are notified to the Risk Center on a paid upon presentation. The Cheque Re- risk decision pertaining to their custo- › Growing loan volume thanks to measu- accounts classified as uncollectible. daily basis, regardless of the cheque port includes total number and amount mers by relying on concrete data. rement of lending risk. amount. of cheques, information about issuing › Speeding up and boosting the quality Information collected via this system is banks, and the list of last 50 cheques The CRS Collective Inquiry service allows of loan extension decisions. consolidated per account and shared › It is possible to run both individual and processed. users to make group inquiries on the › Facilitating rational decision making in with members that have sent notifica- multiple inquiries about bad cheques portfolio of personal loan customers and the assignment of new credit limits to tions about these accounts. Individual notified by members: Protested Bill Report to manage risk effectively. As a result, fi- existing customers. inquiries are also possible via the web › Collective Sharing: Bounced cheque This report contains information about nancial institutions can make their loan screen or the web service. data submitted by members is conso- protested bills in the last five years, inc- decisions rapidly (e.g. extend loans by CRS is not a black list; it also contains po- lidated and shared collectively with all luding Bank Name, Branch Name, Re- SMS) and offer their loan products rapid- sitive loan repayment data. Consequently, Through this system, the following infor- members of the Risk Center via the File cord Type (Notification or Removal), Bill ly to the right customers under the right customers have the opportunity to intro- mation is also shared with the members: Transfer System. Amount, Protested Bill Notification Period, conditions. duce themselves easily to an institution › Information notified to the Risk Center › Individual Sharing: Results of individu- Protest Removal Period, and Reason for with which they will work for the first time by TMSF (Savings Deposit Insurance al inquiries can also be shared with all Removal. Thanks to this advantageous system pro- ever. While the loan accounts are updated Fund of Turkey) regarding credit limit, members, whether they are customers vided by KKB, the finance industry can by the members on daily basis, applica- credit risk and accounts receivables to or not, via the Risk Center’s web appli- grow in a healthy manner and consumers tion records are created and opened to be liquidated. cations. are provided with the financial support sharing instantly. › Information about risks associated with they require on macro scale. commercial paper and principal debt As CRS has historically relied on monthly arising from bills issued through the INDIVIDUAL CHEQUE INQUIRY Members transmit the data of customer data notifications and an updating sys- Central Registry Agency. loan repayments in the prescribed details tem up until June 2015, members were This service enables Risk Center mem- and format for the present and past on a able to track changes in customer risk The Credit Limit-Credit Risk-Receivables bers to inquire about cheques recorded monthly basis to the CRS. KKB transfers with a 45-day lag after running an inqu- Notifications sent by banks are to be Liquidated (CLCR) system launched as dishonored as well as cheques paid the personal loan product data received iry. Thanks to the Daily Data Notification consolidated and shared collectively in 2013 to provide comprehensive infor- after being recorded as dishonored. from members in accordance with a stan- project, a first-of-its-kind in the world, fi- with Risk Center members via the File mation required by members to evaluate dard structure to the CRS database in its nancial and payment performance data Transfer System. credit risk. original state without any modification, can be entered into CRS, which contains

66 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 67 14. OUR PRODUCTS PROVIDED TO TBB’S RISK CENTER

DESIGNED AND DEVELOPED millions of account records, on a daily corporate bureau in 2013, corporate inqui- CUSTOMER OBJECTIONS HANDLING After the launch of the CLCR MIDES project In addition to dishonored and paid chequ- BY KKB USING INTERNAL basis. Hence, members no longer have to ries now include the following: SYSTEM (MIDES) in 2016, customers will be able to object to es, the Cheque Report also contains wait until the following month to inquire › Not only the Aggregate Limit of a firm, the Credit Limit-Credit Risk data notified information about post-dated cheques RESOURCES, THE CORPORATE about the current status of a loan, when but also the breakdown of the Limit, The Customer Objections Handling Sys- to the Risk Center. As a result, KKB will be and open cheques. As KKB began colle- BUREAU SYSTEM (CBS) IS repayment performance changes at the Risk, Cash and Non-cash Limit of the tem (MIDES) allows one to readily commu- able to correct data shared via the CLCR cting information on Postdated Cheques beginning of the month. In other words, Group to which the firm belongs, and nicate objections against the data shared system in a shorter period of time. and Open Cheques from its members, the AN INFORMATION-SHARING KKB members have gained the ability to the data of the General Revision of Ma- within the Credit Reference System (CRS) Cheque Report now contains informati- PLATFORM CONSISTING OF make sound and effective credit decisi- turity; and the Corporate Bureau System (CBS) on about issuers’ postdated and open ons based on the most up-to-date data › Recent combined financial leasing and to all concerned members and units. DATA VERIFICATION SYSTEM (DVS) cheques, in addition to dishonored and CREDIT REGISTRY DATA OF in T+1.5 days. factoring data under the risk code sub- paid cheques. COMMERCIAL ENTERPRISES. set. Thanks to its construction, objections The Data Verification System (DVS) is a made by the customer: KKB platform that allows members to: Thanks to the latest upgrade, the system CORPORATE BUREAU SYSTEM (CBS) In 2014, a function was added to the CBS › Through the Personal MIDES applicati- › Cheque the accuracy of the information now allows for the tracking of a person’s to enable institutions to perform any upon in respect of their data shared in the declared by a consumer who applied to performance as a “bearer” in the reports Designed and developed by KKB using dating, deletion and correction on the CRS, and it, that are offered to members for “inquiry” internal resources, the Corporate Bureau Corporate Bureau Urgent Updating scre- › Through the Corporate MIDES applica- › Complete any missing information of purposes. These reports provide the fol- System (CBS) is an information-sharing ens when there is any missing or errone- tion in respect of their data shared in existing customers, and lowing information via the Cheque Report platform consisting of credit registry data ous data transmitted to the CBS without the CBS are handled and concluded in › Update any outdated data of the cus- Raw Data Presentation System; of commercial enterprises. waiting for the next notification month. a short period of time. If, as a result of tomers. Thanks to the system, where objections the examination, the determination is DVS is used very intensively KKB mem- Information about cheques payable to the Launched in 2005, CBS offers a very rich received and answered via MIDES are made that there is a problem with the bers. issuer at 1-, 3-, and 12-month intervals; data set for use by members to perform listed, KKB members can make updates shared data, the necessary correction › Number and amount of cheques paid a risk assessment on a legal entity. With without waiting for the next month’s no- is carried out without a request within upon presentation, the Collective Inquiry function added to tification. a short time. CHEQUE REPORT RAW DATA PRESENTATION › Ratio of cheques paid upon presentati- the system in November 2013, members on to cheque amount, can easily update the portfolio at certain The CBS Improvement and Simplification In respect of the transactions executed This system provides access to the his- › Number and amount of cheques disho- periods. initiative commenced in 2015. This proje- under MIDES, KKB is positioned as a cen- torical payment data of a cheque issuer. nored but subsequently paid, ct aims to enhance data diversity within ter that has undertaken to manage and The report contains the following: › Ratio of cheques dishonored but sub- The content rich system facilitates sha- CBS and further improve the system’s supervise the communication coordinati- › Banks where the customer has chec- sequently paid to cheque amount, ring of an extensive range of data, inclu- data uploading and inquiry performance. on between the consumer and KKB-mem- king accounts, › Number and amount of cheques disho- ding identity details of real persons and bers. › Number of cheques presented, nored and still unpaid. legal entities, information about relations Under this effort, KKB plans to enter Pay- › Number and amount of cheques paid on a capital basis, loan account and rement Performance data to CBS, just like in MIDES has the distinction of being the upon presentation, By providing the Cheque Report Raw Data payment data, collateral information, im- CRS, and share the Number of Days of the fastest system in the world in terms of › Number and amount of cheques dis- via the web service, KKB enables mem- ports and exports, and bounced cheque Biggest Delays in Payments within the examination of and responding to consu- honored but subsequently paid, and bers to directly transfer data to their own data. For example, through reports es- Period for any given loan, going back as mer complaints, when compared to simi- cheques still unpaid, decision-support systems. tablished by using bounced cheque far as 36 months. KKB also plans to start lar systems. Banks, which are members › Date of the first cheque presented, data shared daily via the system, special sharing data with the following financial of the Risk Center, are given 24 hours to › Dates of the first and last cheques pre- warning messages about firms that is- institutions: respond to customer objections. sented and dishonored, sue cheques on that day are sent to the › Factoring Companies › Date of the last cheque paid upon pre- KKB-member institutions where these fir- › Leasing Companies Objections to the Risk Reports can be sentation, ms are customers. › Asset Management Companies made electronically medium by using the › Detailed information about cheques reference number of the relevant record paid and dishonored in the last 1-, 3-, As the number of members who provide Banks and finance companies that do not under the Risk Report Objection and Con- and 12- month periods, information to the system increases, the currently send notifications are expected firmation at www.kkb.com.tr. › List of dishonored cheques, limited to Corporate Bureau System is being used to start sending them after the launch of 50 items. The CBS Improvement and more intensively. CBS has become an im- the project. MIDES closely monitors the relationships Simplification initiative aims to portant tool in the credit assessments of of consumers with KKB and the members, enhance data diversity within CBS KKB-member institutions regarding their the tasks performed in this connection, and further improve the system’s data corporate customers. As a result of a pro- the incidents and problems encountered. uploading and inquiry performance. ject carried out to enrich the data of the New projects are developed in response as well as other efforts to make MIDES a more efficient system. 68 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 69 14. OUR PRODUCTS PROVIDED TO TBB’S RISK CENTER

ANNOUNCEMENTS RISK REPORT RAW DATA PRESENTATION BOUNCED CHEQUE WARNING SYSTEM PUBLISHED IN THE OFFICIAL Risk Report Raw Data Presentation provides in- While the information about bounced cheques GAZETTE RELATED TO formation about historical loan repayment per- is uploaded into the system on a daily basis, ENTITIES PROHIBITED FROM formance of natural persons and legal entities. the system scans the issuers of these cheques in both the Credit Reference System (CRS) PARTICIPATION IN TENDERS, Based on personal and commercial loan data and the Corporate Bureau System (CBS) and AN IMPORTANT INPUT FOR that the Risk Center periodically collects from produces a warning message to inform mem- THE RISK ASSESSMENTS corporate members via CRS and CBS, this report bers about the status of the bounced cheque. contains the following information: CONDUCTED BY KKB › Credit limits and risks of real persons and le- Consequently, KKB provides an early warning MEMBERS, ARE ENTERED gal entities service to its members by informing them › Historical loan repayment performance about any potential payment problems their INTO THE SYSTEM ON A DAILY › Number of financial institutions that send no- customers may face in the future. BASIS. tifications › Total number of credit accounts and account INQUIRY AND WARNING ABOUT ENTITIES details for personal loans PROHIBITED FROM PARTICIPATION IN TENDERS › Date of the last loan drawn › Number of overdue credit accounts Announcements published in the Official Gazette › Total amount of overdue balance related to entities prohibited from participation in › Longest overdue period to date tenders, an important input for the risk assess- › Details of loans under prosecution, if any ments conducted by KKB members, are entered › Financial leasing-Factoring CLCR data into the system on a daily basis.

By providing the Risk Report Raw Data via the Based on this data, various services are provided web service, KKB enables its members to dire- to KKB-member institutions, including: “WE BRING FINANCIAL ctly transfer data to their own decision-support › When an announcement is published about systems. prohibited entities and natural persons, a warning report is produced specially for the finan- SERVICES TO CUSTOMERS’ cial institution that serves these clients. As a DUPLICATE CHEQUE WARNING SYSTEM result, members can be informed of notices published about their customers without ha- In the event that the same post-dated cheque ving to monitor the Official Gazette. MOBILE PHONES, MAKING is notified by different banks, KKB sends these › If a customer who is the subject of inquiry in banks email notifications that include detailed the Corporate Bureau has a tender ban record, information about the cheque in question and then this information is also provided at the LIFE EASIER FOR THEM.” other banks that have sent a notification in or- time of the inquiry. der to prevent cheque fraud. › One can run a customer-based search via the web application called Transactions Related to Entities Banned From Tenders, and access all HAZAR TUNA announcements published within the year. WE ARE COMMITTED TO QUALITY IN EVERYTHING WE DO

70 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 71 14. OUR PRODUCTS PROVIDED TO TBB’S RISK CENTER

THE DATA VALIDATION AND DATA SHARING ABOUT DERIVATIVE DATA VALIDATION AND SANCTION SHARING OF INTERNAL MEMBER REQUESTS MANAGEMENT SERVICE PAID BILLS INQUIRY SERVICE SANCTION APPLICATIONS ARE TRANSACTIONS APPLICATION RATING SCORES In order to maintain continuity and functi- Member banks notify the Risk Center of DESIGNED TO ENSURE THE Under this service, KKB shares data about This system automatically cheques whether Using this system, those banks that are oning of business processes, all requests paid bills and debtor information on a se- ACCURACY OF CUSTOMER futures, options and similar derivative cont- KKB member data notifications are perfor- members of the Risk Center and which submitted by members, customers and mimonthly basis. Personal data and add- racts sold by banks to natural persons and med at intervals defined for each product have Internal Rating systems notify the internal departments are responded to on ress of the debtor, and bill amounts inclu- INFORMATION SUBMITTED TO legal entities one business day before the and above a certain error rate; and sends TBB Risk Center of credit scores assigned behalf of KKB and the TBB Risk Center. To ded in the notifications, are then entered THE RISK CENTER AND THUS notification date, including information feedback to members so that they can take to customers, their risk categories and that end, in 2015, more than 20 thousand into the system. about limits and risks. Data sharing about action. When an error is detected, the sys- score scales. They also share this infor- requests and transactions related to ope- TO PROTECT CUSTOMERS. derivative transactions can be made either tem imposes a sanction in accordance with mation with the Banking Regulation and rations were resolved, while adhering to Regardless of customer status, informa- collectively or individually. the rules set forth in the Risk Center Circular. Supervision Agency (BRSA). prescribed process and quality standar- tion about paid bills is shared with all › Collective Sharing: Data about derivative This system provides the following benefits: ds. Member Management Services inc- members via the web inquiry application, transactions is consolidated for each cus- › Improving the quality of member data by lude providing members access to and which enables individual inquiries. tomer and shared collectively with mem- minimizing erroneous notification rates, CREDIT RATING AGENCIES (CRAS) AND authorization for the systems following bers that have sent notifications about › Enabling members to create data notifi- SHARING OF RATING SCORES the completion of the membership regist- these customers related to derivative cations in a more controlled and accurate ration process. SHARING INFORMATION ABOUT CHEQUES transactions and CLCR (Credit Limit-Credit manner, Banks notify the TBB Risk Center of the UNDER INTERIM INJUNCTION Risk-Receivables to be Liquidated) on the › Taking actions according to different ty- credit scores assigned to customers by next business day after the notification. pes of notifications through product di- Credit Rating Agencies (CRAs), which have RISK CENTER BULLETINS AND STATISTICS This service involves collecting informa- › Individual Inquiry: With this option, one versification, been authorized but not directly acknow- PUBLISHING SERVICES tion about cheques that were endorsed can inquire about Credit Limit-Credit › Protecting customers by ensuring the ac- ledged by BRSA, and of customers’ score by customers unknowingly from banks on Risk-Receivables to be Liquidated and curacy of customer information submit- scales. Each month, 15 reports and one bulletin are a daily basis. This information is shared data about derivative transactions is also ted to the Risk Center. published on the official website of TBB through individual inquiries or collective available. This notification is limited to the types of Risk Center (http://www.riskmerkezi.org). feedback, under the following circums- assets rated by CRAs, which have been tances: ACCEPTANCE & REJECTION NOTIFICATIONS authorized but not directly acknowledged The bulletin and the reports include in- › If a court granted an interim injunction DATA UPDATING APPLICATION RELATED TO LOAN APPLICATIONS by BRSA, and applies only to customers formation about Credit Limit-Credit Risk on a cheque. that have been assigned a valid rating (CLCR), Personal Loans and Credit Cards › If a court lifted an interim injunction or- With the Risk Center Data Updating Applicati- Acceptance/rejection status of home, auto score as well as customers whose rating (CRS), Paid Cheques, Bounced Cheques, der. on, correction of the data notified and shared and consumer loans; credit cards; overdraft scores have been disclosed to the public. and Protested Bills, which are notified to › If a court ordered the cancellation of by members can be performed instantly, wit- deposit account; and commercial loans, for the TBB Risk Center by its members. the cheque. hout waiting for the next notification period. which natural persons and legal entities have Information about natural persons and applied, and acceptance/rejection notificati- legal entities that have been included in The development and the size of the Tur- This service enables customers to inqu- Thanks to this service, CRS, CBS, Protested ons related to these applications are collecti- CRA notifications is collectively shared kish financial sector, including non-bank ire about a cheque to find out if there is Bills and Credit Limit-Credit Risk data can be vely sent to the Risk Center as statistical data. with all member banks, regardless of the financial institutions, along with overdue an interim injunction or cancellation order updated online. fact that these persons are customers of receivables are analyzed with detailed before accepting it, either via the Indivi- The Data Updating Application Using such data provided by banks, Turkey’s these banks. breakdown analyses in these publicati- dual Cheque Inquiry screen or the Cheque enables online updating of CRS, CBS, Central Bank can monitor the state and the ons. Report. Protested Bills, and Credit Limit-Credit development of the financial sector, with a Risk data. particular focus on rejected loan applications, GOVERNMENT AGENCY SERVICES AND They include basic monthly trend analy- in terms of number and amount. CUSTOMER DATA REQUESTS ses as well as special reports published SHARING INFORMATION ABOUT in the sector for the first time, such as the COMPANIES THAT HAVE DECLARED Government Agency Services include number of people, overdue receivables BANKRUPTCY/SUSPENDED BANKRUPTCY/ responding to information requests sent per city, and the like. DEBT COMPOSITION In 2015, KKB handled more than 20 thousand requests by public authorities and government agencies, such as courts, public prose- Information about companies that have and transactions related to operations through the cutors, enforcement directorates, Capital declared Bankruptcy-Suspended Bank- Markets Board and the Ministry of Finan- ruptcy-Debt Composition and which was Member Requests Management system, while adhering ce. On the other hand, as part of Custo- published in the Trade Registry Gazette is mer Services, customers can either come compiled and shared with all members of to prescribed process and quality standards. in person to seek a Risk Center report, or the Risk Center via the File Transfer Sys- send a written request. tem on a monthly basis.

72 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 73 14. OUR PRODUCTS PROVIDED TO TBB’S RISK CENTER

THE ABILITY TO MAKE AN SHARING INFORMATION ABOUT CUSTOMERS CROSS CHEQUE RELATIONS ONLINE INQUIRY INTO PROHIBITED FROM USING CHEQUES INQUIRY REVENUE ADMINISTRATION The Risk Center delivers court decisions This system allows inquiries about the RECORDS IMPROVES that ban cheque issuance and/or opening mutual cheque relations between the is- a checking account to all members via the suer and the last endorser who presented EFFICIENCY AND PREVENTS File Transfer System on the second busi- the cheque to a bank. HUMAN ERROR IN ness day following the announcement of the court decision. The Cross Cheque Relations Inquiry pro- OPERATIONS. duces a list showing the number and amount of cheques issued mutually REVENUE ADMINISTRATION RECORD SEARCH between companies and natural persons, with detailed breakdown analyses that Inquiries and online search is possible for include: Cheques Recorded as Dishono- the following information about taxpayers red, Cheques Paid after being Recorded in Revenue Administration (Ministry of Fi- as Dishonored, Cheques Paid upon Pre- nance) records: sentation and Postdated Cheques. › Name/Surname/Title › Taxpayer Identification Number/Turkish The Cross Cheque Relations Inquiry servi- Identification Number ce is provided via web applications since › Tax Office Name and Code November 2015, with all members actively › Company Type using it. › Active/Inactive Status › Business Start/End Date › Potential (The customer is considered a prospect until the company is approved to start business.)

The ability to make an online inquiry into Revenue Administration records improves efficiency and prevents human errors in operations.

RECORD NUMBER OF MONTHLY INQUIRIES 52 MILLION

DID YOU KNOW? NUMBER OF RISK ↗ The Cross Cheque Relations Inquiry ↗ The Risk Center delivers court ↗ The Cross Cheque Relations Inquiry Service has been provided via web decisions that ban cheque issuance produces a list showing the number REPORTS PRODUCED applications since November 2015. via the File Transfer System. and amount of cheques issued 11 MILLION mutually between companies and natural persons.

74 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 75 15. FINDEKS

FINDEKS nal information is available online, throu- KKB established the Findeks Customer gh unwanted sites. This innovative servi- Communication Center (CCC) to provide Findeks is a financial services platform ce then gives a signal when the desired information to consumers and offer its launched by KKB in 2014 to help establish financial conditions become available to products and services through the call a better functioning financial system in the user. center, in addition to the website. CCC is Turkey. To that end, Findeks provides indi- positioned as an effective communica- viduals and corporations with access to Launched in 2015, the QR Code Cheque tions center available to the 30 million credibility indicators, which the financial System is the result of Findeks’s innovati- persons in Turkey who have used/use sector has used for years, thus ensuring on efforts. This new offering aims to make a credit product. The Findeks Customer transparency and making financial mana- commerce more transparent and secure Communication Center, accessible at gement possible for everyone. while increasing production, employment, 444 4 552 (44 44 KKB), aims to deliver all prosperity and trade volume. services needed for the management of Findeks aims to help real sector compa- one’s financial life. nies get to know each other financially; Another product launched in 2015 is the improve their risk-taking and risk-ma- Letter of Guarantee Status Inquiry System Offering users a wide range of products, nagement abilities; protect their capital (LGSI) aimed at the real sector. This sys- Findeks reaches customers through its and reputation; and increase their sales tem enables public institutions and priva- website, online branch, Findeks mobile and competitive power. Thanks to these te companies to cheque the status of the application, Customer Communication objectives and capabilities, Findeks has letters of guarantee they have accepted Center, banks and strategic business become a critical tool, gaining an impor- online, without the need to visit or call the partnerships. Findeks undertakes ongo- tant place in Turkey’s economy in a very bank. Findeks offers unparalleled service ing efforts to increase the number and short time. In light of Findeks services, with its identity verification infrastructu- improve the efficiency of these various companies significantly improve the qu- re, one of the most advanced systems of channels. ality of their assets, and contribute to the its kind in the world. A person’s identity is “ENTERPRISES THAT financial environment and the financial verified through the phone number regis- industry in Turkey. tered with the bank by using the two-factor authentication method and confirming In addition to basic products such as the security information known only to MANAGE RECEIVABLES RISK the Findeks Credit Rating, Risk Report, them. KKB’s service platform complies Cheque Index and Cheque Report, which with COBIT 4.1 and ISO security standar- cover all financial indicators, KKB has fil- ds. All data, including information entered EFFECTIVELY VIA FİNDEKS led some large gaps in the market with for membership registration and making value added products. For example, the payments, are kept in KKB’s data center, www.findeks.com Score Consultant provides expert advice which is audited by the BRSA and inde- 444 4 552 on raising credit scores. Meanwhile, the pendent firms. www.facebook.com/Findeks WILL STAY AHEAD OF THE Warning Service enables individuals to www.twitter.com/Findeks COMPETITION.” find out whether their financial and perso- KORAY KAYA A NEW FUTURE WITH FINDEKS

76 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 77 15. FINDEKS

FINDEKS CREDIT RATING IS FİNDEKS CREDIT RATING of all banks in a single report. The Risk Re- ANOTHER DISTINGUISHING The Cheque Index ranges from 0 to 1,000 A customer can set up different types of USED BY THE REAL SECTOR port allows users see their own financial FEATURE OF FINDEKS IS points. If an issuer fails to pay all of the system alerts, as shown in the examples Findeks Credit Rating has served as a re- information in detail; in addition, they can cheques, they receive a score of 0. If they below: AS A POWERFUL DECISION- ference guide for banks in their lending track the financial performance of other THE WARNING SERVICE, pay all of the cheques, then they receive “I want to receive a warning message, SUPPORT TOOL. decisions for many years. This score is persons or enterprises, if they have ap- WHICH INSTANTLY NOTIFIES a score of 1,000 points. However, if a per- › if my Findeks Credit Rating falls below calculated based on the credit limit, risk, proval to do so. son has even one cheque that has been 1,400 points. and payment history related to personal CUSTOMERS OF ANY dishonored and is still unpaid, then the › if my credit card debt exceeds TL 10,000. loans that individual customers have ob- In commercial relationships, the ability CHANGES IN THE CREDIT Cheque Index is calculated between 1 and › if I delay payment on my credit cards, tained from banks and financial institu- to see the repayment history – and thus 500 points. If a person or an entity has cheques, and the like. tions; credit card and overdraft deposit the payment habits – of the other party LIMITS AND DEBT STATUS OF dishonored cheques, which they have › if an application for a credit product (loan accounts; as well as the extent and frequ- along with credit product volume and as- THEIR LOANS, CREDIT CARDS paid later, then the Index is calculated and credit card) is made in my name.” ency of new credit. sociated risks enables an entity or person OR OVERDRAFT DEPOSIT between 501 and 999 points. to take precautionary measures against Because of all these factors are used in accounts receivable risk, thus ensuring a ACCOUNTS. The Cheque Index gives an idea about TRACER the calculation, Findeks Credit Rating fun- safe environment for trade. cheque payment habits of an individual ctions like a summary of the Risk Report. or an enterprise. The Cheque Index is logi- Tracer is another exclusive benefit provi- cally similar to the Findeks Credit Rating; ded to Findeks customers. Tracer prote- Banks and other financial institutions CHEQUE REPORT however, it contains more essential in- cts personal and sensitive information, take into consideration the credit score formation pertaining to cheque payment including ID, communication, and credit and the payment history while assessing The Cheque Report contains both positi- performance and has a simpler calculati- card data, by running extensive scans loan applications and managing their ve and negative information on cheques on algorithm. online, including the “dark web.” If Tracer consumer loan portfolio. They can also used in the past, and cheques issued but matches the data it runs, transmitted by predict future payment performance. Fin- not yet paid. customers for protection, with any online deks Credit Rating is used by the real se- WARNING SERVICE data that is used without authorization, ctor as a powerful decision-support tool. Differing from the Risk Report, the Cheque the system sends a simultaneous notifi- Report shows the debt repayment beha- Another distinguishing feature of Findeks cation to the Tracer customer. A real-time Using Findeks Credit Rating, lending insti- vior of a person or enterprise related to is the Warning Service, which instantly data tracking service offered to individu- tutions offer their customers segmented the debt they owe to sectors outside the notifies customers of any changes in the als and enterprises through a website, products and services, and diversified financial industry. If a cheque bearer ob- credit limits and debt status of their lo- Tracer is designed to minimize the risk payment options; meanwhile, lenders bo- tains approval from the issuer, then they ans, credit cards or overdraft deposit ac- of identity theft. Tracer cheques whether ost automation in decision processes, re- can track the cheque payment behavior counts. Thanks to this service, customers customers’ personal details (e.g. name, duce operating costs, and increase their of that issuer. The Cheque Report also can keep their finances under control and email, phone number, Turkish ID number) profits. contains information about all banks that take action when necessary. or any financial information (e.g. credit issue cheques in Turkey. The data contai- card number, bank account number, and ned in these reports relates to the period Findeks Warning Service tracks these the like) are currently circulating on the RISK REPORT after 2009 for bounced cheques and after The Cheque Index gives an idea changes in accordance with the criteria 2007 for paid cheques. Data is updated about cheque payment habits of an set by customers and notifies them via The Risk Report contains information daily. individual or an enterprise. SMS or email. about payment history related to active loans and loans closed within the last five years. The report covers home, auto and CHEQUE INDEX consumer loans, credit cards and overdraft deposit accounts. All information The Cheque Index is calculated based on about these products is submitted to the the cheque payment behavior of legal en- TBB Risk Center by financial institutions tities and natural persons. The main fac- The Risk Report contains information on a regular basis, compiled by KKB and tors affecting this calculation include the Findeks is a financial services platform about payment history pertaining to included in the Risk Report. As a result, frequency of cheques issued over the last active loans and loans closed within individuals and the real sector are able to 36 months, their date proximity, amounts designed by KKB for the use of individual the last five years. access information about credit products and value. customers and the real sector.

78 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 ACTIVITIES 79 15. FINDEKS

THANKS TO THE FINDEKS Internet without their permission or know- FINDEKS QR CODE CHEQUE SYSTEM QR CODE CHEQUE SYSTEM ledge; the service also cheques whether such information is being traded on the The Findeks QR Code Cheque System is – THE FIRST-OF-ITS-KIND IN dark web. However, with these features, designed to prevent cheque fraud. The QR THE WORLD – CUSTOMERS Tracer is not a protection service, but rat- codes on the cheques, issued by banks her a system for scanning, alerting and upon the request and consent of a cus- ARE ABLE TO CHEQUE THE informing. tomer, are scanned through the Findeks VALIDITY AND AUTHENTICITY Mobile Application; thereby, customers can instantly view the issuer’s cheque OF CHEQUES IN A MATTER RATING CONSULTANCY payment history, without going through OF SECONDS, AND TAKE an approval process. PRECAUTIONS AGAINST The Findeks Credit Rating system aims to offer customers foresight to help them In this system, the cheque issuer gives ACCOUNTS RECEIVABLE manage their financial lives and to ensu- the bank consent to share personal fi- RISK, WHICH ARISES FROM re that commercial relationships are built nancial information from the start so that on solid foundations. In recent years, a cheque bearers can access this key infor- CHEQUE PAYMENTS. need for objective information has emer- mation. ged, especially for managing, raising or maintaining credit scores. Therefore, the Thanks to the Findeks QR Code Cheque Rating Consultant service offered throu- System – the first-of-its-kind in the wor- gh the Findeks Customer Communication ld – customers are able to cheque the Center provides customers with all the in- validity and authenticity of cheques in a formation they need. matter of seconds, and take precautions FINDEKS INDIVIDUAL MEMBERS FINDEKS COMMERCIAL MEMBERS against accounts receivable risk, which Rating Consultancy includes: arises from cheque payments. › Provision of information about the be- 1,180 THOUSAND 20 THOUSAND nefits of the Findeks Credit Rating to individuals, about the range of the rating LETTER OF GUARANTEE STATUS INQUIRY according to the average across Turkey, and the importance of the rating in ter- The Letter of Guarantee Status Inqu- ms of credibility; iry (LGSI) service enables customers to › Consultancy service specially desig- cheque the validity of a letter of guaran- ned for individuals on how the Findeks tee, without contacting the issuing bank. TOTAL FINDEKS MEMBERS 1.2 MILLION Credit Rating can be raised or how an Using parameters such as Bank Name, already high rating can be managed. Branch Name, Letter of Guarantee Num- ber, Amount, Currency Code and Expira- In 2014, KKB set up the infrastructure to tion Date, customers can run an online deliver consulting services through CCC. cheque to find out whether a letter of gu- In line with its future strategies, KKB con- arantee has been issued, and whether an CHEQUE REPORT tinually works to improve Findeks produ- active risk record exists for that letter of FINDEKS CREDIT RATING FINDEKS RISK REPORT FINDEKS cts and services while developing new guarantee. NUMBER OF INQUIRIES NUMBER OF INQUIRIES NUMBER OF INQUIRIES products. The added value generated by the Findeks product and service offering has not only changed Turkey’s perspec- 554,844 3,364,888 92,209 tive on commerce, it has also created a new awareness about personal financial The added value generated by Findeks management. KKB expects that Turkey’s products and services has changed prosperity will steadily increase, thanks to Turkey’s perspective on commerce. these challenging but very useful efforts. TOTAL FINDEKS INQUIRIES 4,011,941

80 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 BUBUSINESSS INESS UNITSUNITS 81 OUR SOCIAL CONTRIBUTION 16. OUR SOCIAL CONTRIBUTION

“YOU IMAGINE, WE REALIZE” SOCIAL competition participants were studying were children aged eight to nine years. A RESPONSIBILITY PROJECT COMPETITION Communications, Public Relations, Edu- quarter of these persons were in need of cation, Physiotherapy and Rehabilitation, medical treatment. Most of the youngs- In 2015, KKB organized the second edition Medicine, Psychology, or Engineering. KKB ters had upper respiratory infections whi- of the socially responsible project competi- provided support to implement one of the le women showed symptoms of urinary tion, “You Imagine, We Realize,” which aims winning projects, as a lasting contribution tract infection. Patients were provided to raise social responsibility awareness to society. with necessary medical treatment under and heighten sensitivity to social issues the supervision of medical doctors from among university students. The jury panel, Acıbadem and Çukurova universities. KKB which evaluated the social responsibility THE STORY OF REALIZING A DREAM: “IF is committed to providing support to this projects developed by university students, YOU’RE THERE, WE’RE THERE, TOO” project, which benefits seasonal agricul- consisted of Emin Çapa, CNN Türk Economy tural workers, one of the most disadvan- Director; Fügen Toksü, Communication Ex- A group of students, represented by Sıla- taged segments of society. pert; İbrahim Betil, Civil Society Volunteer; su Arıkan and Pırıl Yıldız from Acıbadem Mustafa Kutlay, President of DesiBel Adver- University’s School of Medicine, won first tising Agency; Özlem Denizmen, Columnist prize with their project, titled “If You’re KKB’S RUNNING TEAM RAN FOR CHARITY at Posta Newspaper; Kasım Akdeniz, Gene- There, We’re There, Too.” The project in- ral Manager of KKB; and Arzu Paksoy, Foun- volved conducting health screenings and Achieving an important CSR goal, KKB’s ding Partner of ARPR. providing healthcare services to seasonal Running Team ran the Vodafone Istanbul agricultural workers. KKB provided logisti- Marathon (10-, 15-, and 42-kilometer cour- The competition categories included edu- cs support, and a team comprising nine ses), which was held on November 15, cation, environment, health, sports, culture students from Acıbadem University and 2015, to raise money for the Spinal Cord and arts, and society; applications were three specialists from Yeditepe University Paralytics Association of Turkey (TOFD). accepted between January 1 and March 13, implemented the project in Çaputçu and TOFD is supported by the Adım Adım ini- 2015. During this time, the project compe- Tuzla villages in Adana’s Yüreğir district tiative, a regional running group. KKB’s tition received a total of 560 applications on July 5-11. The young volunteers stayed team successfully completed the marat- “DREAMS ARE TO BE from 60 cities, including Istanbul, Denizli, in Adana for a week and visited seaso- hon within the finishing time and mem- Trabzon, Izmir, Ankara and Antalya. At the nal agricultural workers there, who lived bers of the running team raised a total of Awards Ceremony, which was held on May among the fields, and set up a medical TL 16,545. With this performance, KKB ear- 6, 2015, the winners in the social media tent. The students spent the first three ned its place among philanthropic com- REALIZED – AND WE DO category and other categories received days in Çaputçu and the remaining four panies. KKB donated electric wheelchairs TL 5,000; meanwhile, runners up, second days in Tuzla, providing healthcare ser- to TOFD at a ceremony held on December and third, received TL 3,000 and TL 1,000, vices to the workers within the tented 26, 2015. Thanks to the volunteers, who OUR PART TO MAKE DREAMS respectively. Of the six category winners, area. The team performed basic physical ran the 37th Vodafone Istanbul Marathon, the one with the highest overall score won exams on the wives and children of the 186 disabled citizens were provided with the Grand Prize of TL 10,000. In addition to field workers during the daytime, and the electric wheelchairs, of which 20 were COME TRUE.” awarding the three finalists in each cate- workers themselves in the evening. They distributed in Istanbul. The remaining 166 gory and the winner of the social media also provided health awareness training. electric wheelchairs were donated to tho- category, KKB also provided an internship Under this project, the team reached out se in other cities across Turkey. BAHATTİN ÇELİK opportunity to these students. Most of the to a total of 250 persons, of whom 100 WE HAVE A TREMENDOUS RESPONSIBILITY TO SOCIETY

84 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 OUR SOCIAL CONTRIBUTION 85 REPORTS AND FINANCIAL STATEMENTS 17. DECLARATION OF CONFORMITY FOR THE ANNUAL REPORT

KKB KREDİ KAYIT BÜROSU A.Ş. KKB KREDİ KAYIT BÜROSU A.Ş. DECISION OF BOARD OF DIRECTORS ANNUAL REPORT OF 2015 DECLARATION OF CONFORMITY MEETING We hereby declare that: LOCATION: Headquarters Office, Istanbul DECISION DATE: 25.02.2016 We have examined the financial statements, footnotes and the Annual Report pertaining to the period January 1, 2015 – December 31, DECISION NO.: 2016/06 2015, and prepared in accordance with the Regulation on the Determination of the Minimum Content of Companies’ Annual Reports, which was issued by the Ministry of Customs and Trade and came into effect upon its publication in the Official Gazette dated August AGENDA: Making the decisions required to prepare for the General Assembly Meeting. 28, 2012, and approved by Board of Directors’ Resolution No. 2016/06 on February 25, 2016;

RESOLUTION: As part of 2015 General Assembly Meeting preparations, the Board of Directors unanimously decided to: Based on the information known to our Company within its area of responsibility, the financial statements and the Annual Report do not contain, within the framework established by the regulation, any untrue statement of a material fact or omit to state a material Approve the Company’s financial statements for the period, which ended on December 31, 2015; fact, which might be misleading with respect to the period covered by this report;

Approve the Company’s 2015 Annual Report, and get it signed by the Chairman and the Members of the Board of Directors, in accor- Based on the information known to our Company within its area of responsibility, the financial statements and other financial infor- dance with the relevant provisions of the Regulation issued by the Ministry of Customs and Trade; mation included in this report, fairly and accurately represent in all material respects the financial condition and operating results of our Company as of, and for, the period covered by this report. Include the matter of hiring Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. to conduct independent audits on the Company in accordance with the relevant provisions of the Turkish Commercial Code, as an item in the agenda of the General Assembly meeting.

ERTUĞRUL BOZGEDİK DEMİR KARAASLAN ERTUĞRUL BOZGEDİK DEMİR KARAASLAN Chairman of the Board of Directors Vice Chairman of the Board of Directors Chairman of the Board of Directors Vice Chairman of the Board of Directors

On Behalf of T. Garanti Bankası A.Ş On Behalf of Akbank T.A.Ş. On Behalf of T. Garanti Bankası A.Ş. On Behalf of Akbank T.A.Ş. ŞÜKRÜ ALPER EKER EGE GÜLTEKİN ŞÜKRÜ ALPER EKER EGE GÜLTEKİN Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors

VEYSEL SUNMAN GÖKHAN ERTÜRK MEHMET SEBAHATTİN BULUT VEYSEL SUNMAN GÖKHAN ERTÜRK MEHMET SEBAHATTİN BULUT Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors

On Behalf of DenizBank A.Ş. On Behalf of DenizBank A.Ş. İZZET OĞUZHAN ÖZARK MEHMET EMİN KARAAĞAÇ KASIM AKDENİZ İZZET OĞUZHAN ÖZARK MEHMET EMİN KARAAĞAÇ KASIM AKDENİZ Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors and Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors and General Manager General Manager

88 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 REPORTS AND FINANCIAL STATEMENTS 89 18. AGENDA OF THE ORDINARY GENERAL ASSEMBLY

KKB KREDİ KAYIT BÜROSU ANONİM ŞİRKETİ NOTICE TO SHAREHOLDERS FOR ORDINARY GENERAL ASSEMBLY TO BE HELD ON MARCH 31, 2016

The Ordinary General Assembly of our Company will be held at the head office of the Company at the address of Barbaros Mah. Ardıç Sokak, Varyap Meridian, F Blok, Batı Ataşehir, Istanbul at 14:00 hours on Thursday, March 31, 2016, to examine the activities in 2015 and to discuss and take resolution on the agenda written below. Shareholders who will be represented by proxy at the meeting must execute the proxy in accordance with the following form and send it to our Company one week before the day of the assembly. The financial statements, consolidated financial statements, Annual Report of the Board of Directors, and dividend distribution proposal of the Board of Directors will be ready for inspection by the esteemed shareholders at the head office of our Company from March 9, 2016 on.

We kindly request our shareholders to be informed of the foregoing and to honor the meeting.

Yours sincerely,

KKB KREDİ KAYIT BÜROSU A.Ş. BOARD OF DIRECTORS

ERTUĞRUL BOZGEDİK DEMİR KARAASLAN Chairman of the Board of Directors Vice Chairman of the Board of Directors

Agenda 1) Opening and formation of the Chairing Board; 2) Authorizing the Chairing Board to sign the Minutes of the General Assembly; 3) Reading and discussion of the Annual Report prepared by the Board of Directors; 4) Reading, discussion and adoption of the Audit Report; 5) Reading, discussion and adoption of the financial statements; 6) Release of each member of the Board of Directors from their obligations; 7) Determination of the mode of use of the profit and of the rates of profit and dividend share to be distributed; 8) Determination of remunerations and other benefits, such as bonuses, premiums, and the like of the members of the Board of Directors; 9) If any vacancy occurred on the Board of Directors and if any person has been appointed to the vacant seat during the year, approval of the appointment by the General Assembly; 10) Election of the auditor; 11) Discussion of granting of permissions to the members of the Board of Directors as set out in Articles 395 and 396 of the Turkish Com- mercial Code No. 6102; 12) Petitions and suggestions; 13) Closing.

Proxy Form In respect of ...... shares at par value of TL ...... in aggregate owned by our Bank in the capital of KKB Kredi Kayıt Bürosu A.Ş. (the “Com- pany’), we appoint ...... to be our proxy to represent our Bank and to cast vote on behalf of the Bank on the issues in the agenda in the Ordinary General Assembly of shareholders of the Company to be held at the address of Barbaros Mah. Ardıç Sokak, Varyap Meridian, F Blok, Batı Ataşehir, İstanbul at 14:00 hours on 31.03.2016.

PRINCIPAL: Name and Last Name/Trade Name

Date and Signature NOTE: If the proxy is not certified by a notary public, a notarized circular of authorized signatures of the principal must be attached to the proxy.

90 KREDİ KAYIT BÜROSU ANNUAL REPORT 2015 This report has been published using 100% recycled paper.