Ziraat Participation quickly began to generate added value in its first year of operations by rising on the deeply rooted values represented by the Ziraat brand.

Ziraat Participation began to execute its strategies uncompromisingly in 2015, which was its first year of operations, and supported its customers with a rich portfolio of products and services.

Ziraat Participation quickly began to generate added value in its first year of operation by building on the deeply rooted values represented by the Ziraat brand. Under the guidance of the senior management team, who has competence in reading market dynamics and windows of opportunities correctly, Ziraat Participation achieved its targets for the year 2015 with accurately configured service and operation processes, a competitive service network and modern risk management practices.

During 2015, Ziraat Participation successfully offered its customers products and services that have high added value and which fully comply with the participation banking principles. Within the scope of the service cycle, Ziraat Participation, which supports its real sector customers with a range of products from project financing to foreign trade, also entered the area of retail banking with its competitive products and services.

Corporate and Entrepreneurial Banking
A year when powerful and widespread contact was achieved with customers.
Working to a basic philosophy of listening to its customers and offering them unique solutions in all circumstances, Ziraat Participation has notched up a major achievement in gaining customers despite being a new entrant to the sector and the intense competition experienced in the business. Within the scope of systematic marketing and customer gaining activities conducted in 2015, Ziraat Participation began to establish contact with customers in the corporate and entrepreneurial segment in the country’s different regions.

Having rapidly completed its installation and infrastructure investments, Ziraat Participation meets companies’ cash and non-cash financial needs with an innovative and high quality service approach. Following the activities carried out in 2015, the POS product was offered to customers at the beginning of 2016.

In 2016, Ziraat Participation will continue to strengthen its presence and operations in the sector with financing methods such as the Investment Operating Financing For Agricultural Production with Low Profit Share, Profit - Loss Sharing and the Financing from the Industrial Development Bank of Turkey (Türkiye Sınai Kalkınma Bankası) and World Bank to meet the financing needs of producers for agricultural production, with preferential conditions attached.

Retail Banking
Operations shaped under a vision of “achieving more by sharing”
Aiming to meet customers’ expectations on time and with the right products and services, Ziraat Participation completed a successful entry into the retail banking sector with the vision outlined in the slogan of “Achieving More by Sharing”. Despite intense competition in the business, Ziraat Participation took important steps towards attracting individual customers during 2015, and achieved a successful performance.

The work carried out in the retail banking sector in 2015 is summarized below:

• Having quickly completed new installation and infrastructure investments, Ziraat Participation began to receive individual funding applications from May 2015.
• The Bank started to offer housing, vehicle and consumer financing products to customers through the funding disbursement system based on Islamic banking principles.
• Aiming to provide special services to customers for housing finance, Ziraat Participation began finance transactions for unfinished housing in the project stage in 2015. As of end of 2015, the Bank was involved in four large housing projects and began extending housing finance.
• To meet the financing needs of customers who are teachers, Ziraat Participation organized the Teachers’ Day campaign in the November-December period.
• In 2015, protocols were signed between Ziraat Participation and the Social Security Institution (SSI) and the Ministry of Finance, with mandatory collection of premiums and payment of taxes starting to be carried out through Ziraat Participation following the completion of integration work.
• In 2015, POS allocation agreements were signed with businesses. The product dissemination process will continue in 2016.
• The Ziraat Participation Card product was offered to customers in the individual and corporate segment.

In this period, Ziraat Participation achieved important realizations with respect to attracting new customers, participation funds and disbursed fund volume with its innovative and solution oriented strategy.

Ziraat Participation determined its goal for 2016 as one of expanding its customer base by providing an exceptional service and a wide range of products and establishing secure relationships with its customers by introducing innovations into participation banking with a customer satisfaction centered approach.

Synergy with Ziraat Bankası...
As part of the correspondent banking project, anyone wishing to be a customer of Ziraat Participation can open current and participation accounts in Ziraat Participation through the Ziraat Bank branches.

Meanwhile, users of the Ziraat Participation Card could benefit from balance inquiry and withdrawal services from Ziraat Bank ATMs free of charge.

The strategic cooperation developed with Ziraat Bank offers Ziraat Participation an extremely important and valuable source of leverage for development and growth.

Ziraat Participation provides its customers with products in accordance with the principles of participation banking, observing the balance of resources.

Treasury Management and International Banking
Based on its real sector financing weighted growth strategy...
In 2015, Ziraat Participation pursued a growth strategy that involved assets in which there is a high weighting of real sector financing. Ziraat Participation began to meet financing needs through participation funds and other resources which meet the principles of participation banking and which have a longer maturity than participation funds, as well as equity, by being mindful of the risk-return balance.

Ziraat Participation provides its customers with products in accordance with the principles of participation banking, observing the balance of resources. In 2015, balance sheet liabilities were established by considering optimal cost and maturity when diversifying the resources for the financing of the real sector.

Within the framework of short and long-term liquidity planning in Turkish Lira and foreign currency by Ziraat Participation, borrowing and financing products between banks were used effectively to fulfill the required reserves, meet the liquidity requirements in line with the principles of participation banking and to make use of the surplus.

Ziraat Participation’s Basic Liability Management strategy involves managing the pools most efficiently by expanding the base of participation funds. Under the target of resource diversity and cost-effective use of resources, Ziraat Participation also uses different resources besides participation funds. In this context, Ziraat Participation expanded Turkish Lira and foreign currency financing obtained from domestic and foreign banks.

The Bank has developed its range of products to respond quickly to customers’ needs since the date it first entered operation. In this context, Ziraat Participation started to offer gold trading transactions in its branches and the Internet branch shortly after it entered operation.

Ziraat Participation completed the installation of infrastructure required for the customers to invest in lease certificates that are in its portfolio. Customers were given the opportunity to carry out forward foreign exchange transactions for the purpose of hedging. The Bank largely completed the work necessary to carry out sale transactions of investment funds that are in accordance with the principles of participation banking to customers. The concerned funds are planned to be offered to the market in 2016.

Active service in the field of emerging correspondent relationships and foreign trade
Immediately after entering operation in 2015, the Ziraat Participation Department of Financial Institutions and Investment Banking completed the harmonization process with a significant number of banks and established Swift correspondent relationships and quickly began to meet demand in the field of foreign trade.

On the other hand, the correspondent bank limit allocation was carried out for many banks when the Internal Assessment Model was created.

In 2015, a correspondent account agreement was drafted in different currencies with correspondent banks, and mutual wakala (representation)/murabaha agreements were signed with some of these banks. In this context, foreign borrowing transactions, besides participation funds, were initiated in order to increase the variety of resources.

Ziraat Participation conducts negotiations with international organizations in the financing of SMEs and exports.

Another important development in 2015 was the approval of the application to establish Ziraat Varlık Kiralama A.Ş., Ziraat Participation’s asset leasing subsidiary, by the BRSA (Banking Regulation and Supervision Agency) and the CMB (Capital Market Board). Ziraat Participation’s goal is to issue a TL lease certificate, which will be the first in the domestic market, through Ziraat Varlık Kiralama A.Ş. in 2016.

In 2016…
In 2016, Ziraat Participation aims;

• To significantly increase the number of correspondent banks and foreign trade volume,
• To obtain murabaha (usury) syndications from international markets in order to diversification borrowing to other resources besides participation funds, and to extend maturity in resources,
• To complete agreements for obtaining funds from international institutions for SMEs and export financing, for which negotiations were carried out in 2015 and to increasingly contribute to the real sector.

Opening participation account, deposit/withdrawal from the current account and stock collection transactions by Ziraat Participation’s customers have been allowed to be made through the branches of the Ziraat Bank, under the correspondent agreement made with the Bank.

Operational Transactions
The approach that embraces participation banking products and service delivery process from end to end
In 2015, Ziraat Participation rapidly completed numerous operational processes that embrace participation banking products and service delivery process from end to end.

All of the operational processes carried out are essential projects that pave the way for Ziraat Participation’s integration into the system, compliance with the laws and the fast and quality service delivery to customers. The processes in this scope are briefly summarized below:

• Ziraat Participation was given the capability mediation in foreign trade and foreign exchange transaction by commissioning Swift, that is used in international money transfers and communications and which will be carried out with overseas institutions.
• Required system infrastructure was set up by signing an agreement with the Tax Office and the e-distrain application was commissioned.
• Certification tests regarding tax collections were completed; tax collections started to be carried out both online and offline by completing the mutual tests with the Revenue Administration.
• The establishment process of Electronic Fund Transfer (EFT) System was completed in a short space of time, and the system was commissioned rapidly.
• A protocol was signed with the General Directorate of Security and a system that allows the e-pledge (surety) facility through the parent banking software on the vehicles which form the guarantee for disbursed funds or be a subject of disbursed funds was commissioned.
• An agreement was signed with the companies that will perform appraisal and mortgage transactions. The works to make demands for appraisal and mortgage and receive responds through the main banking system were completed and the works reached the test stage.
• To ensure follow-up and consultancy of leasing and treasury-backed financing transactions contracts were signed with the customs and traffic consultants.
• Mernis (Central Population Management System) integration was achieved by signing an agreement with the General Directorate of Population and Citizenship Affairs and thus making KPS (Identity Sharing System) inquiry was made possible.
• The printing of Ziraat Participation cheques and the punctures of letters of guarantee were carried out.
• Ziraat Participation’s membership into Takasbank, Central Registry Agency and Association of Financial Institutions was ensured by signing agreements with these institutions.
• Prior to the opening of branches, on-site visits to the branches were made and the completion of the necessary preparations and controls were ensured.
• Under the correspondent agreement made with the Ziraat Bank, thereby, opening participation account, deposit / withdrawal from the current account and stock collection transactions by Ziraat Participation’s customers have been allowed to be made through the branches of the Ziraat Bank.
• Customer definition and acceptance transactions preparations through the correspondent banks and the web were completed. Customer acceptance through the Ziraat Bank service network was initiated. Customer acceptance through the web will start in 2016.
• Comprehensive work for the establishment of a correspondence agreement with Ziraat Bank International A.G. was initiated.
• The project for new customers to be accepted, special current accounts and participation accounts to be opened and depositing into current account and withdrawal from current account through Ziraat Bank International A.G. branches was commissioned. Ziraat Participation plans to develop areas of synergic collaboration with other financial service providers which are part of the Ziraat Finance Group in the coming period.
• Necessary systemic changes were carried out to allow customers to collectively open accounts.
• Through Registered Electronic Mail (REM), distrain notifications originating from enforcement offices and courts started to be responded to in electronic media.
• Steps were taken to ensure that E-pledge (surety) transactions were carried out.
• Services to pick up goods from customs, and the delivery of the goods to the customer for leasing transactions started to be provided through outsourcing, by collaborating with customs brokerage agencies.
• An agreement was reached with the consulting firm for investment incentive transactions. The application was submitted to the Ministry for the Economy on behalf of Ziraat Participation.
• Ziraat Participation was registered to the Association of Financial Institutions; lease agreements were registered.
• Full integration into the Swift system was achieved.
• The Bank was integrated into international ‘IBAN Complete’, the IBAN verification system.
• Similarly, the Bank gained the capability of displaying the branches, addresses and correspondents of all banks in the world through integration into The Global Banking Reserve (TGBR).
• The transfer operations were initiated by opening letters of credit to Ziraat Bank and other correspondent banks.
• The Bank achieved full integration with 225 banks which had entered the Relationship Management Application (RMA)¹ agreement. The transfers related to foreign operations were also provided as well as incoming and outgoing transfers with the RMA agreements.
• Accounts were opened in domestic and international correspondent banks and work was undertaken to ensure their reconciliation.
• The Securities Module integration was completed, enabling Ziraat Participation to carry out Sukuk (lease certificate) transactions.
• Ziraat Participation became a member of the Turkey Electronic Fund Distribution Platform (TEFAS).
• Application program interface (API) transactions were carried out and the Bank applied to the Capital Market Board for membership.
• Certification tests regarding Social Security Institution (SSI) were completed and SSI payments started to be carried out through Ziraat Participation on an online and offline basis.
• Certification tests for receiving the payment of Turk Telekom bills through Ziraat Participation were completed, and collections of payments started to be carried out.
• Certification tests for receiving the payment of Vodafone bills through Ziraat Participation are ongoing.
• Work began for the transition to the cheque application with Square Code.

Channel Management
The internet branch of Ziraat Participation, that adopts a multi-channel strategy, has been used actively since 29 May 2015 when Ziraat Participation was established.

The transaction sets used in Internet Banking meet 90% of customers’ banking needs. The project to add the remaining transaction sets into the Internet banking module are ongoing.

The first application of branchless banking will be commissioned in 2016. The project to create a customer/opening an account over the web, in what would be the first effort of branchless banking services, was put into operation and pilot work continues. The application is planned to be available for use in 2016.

Financial transactions, Internet Banking support services, password transactions and debit card services are among the activities carried out within the Ziraat Participation Customer Contact Center.

Work initiated on mobile banking project
Work on the mobile banking application, the development and purchasing activities of which had already been initiated, is ongoing. Ziraat Participation’s goal is to be present on the mobile devices of its customers in 2016.

As one of the first points of contact with Ziraat Participation customers, the Customer Contact Center offers services 24 hours a day, 7 days a week from the 0850 220 50 00 line. Ziraat Participation’s customers perform banking transactions through the platform that presents a fast and high quality service experience through the IVR (interactive voice response) system and/or by connecting to a customer representative.

Financial transactions, Internet Banking support services, password transactions and debit card services are among the activities carried out within the center.

Within the framework of ensuring Customer Contact Center to provide accessible, quality and efficient service strategy, in parallel to expanding the number of customers, the Bank aims to keep the ratio of call responses above 98% by increasing the number of qualified call center staff.

Project work has begun that will develop the ability of customers to communicate with the Customer Contact Center through chat and video communication methods. Work is continuing to update the IVR system for customers responding in English and Arabic. The project is planned to be commissioned in 2016.

Ziraat Participation began to offer ATMs for better quality and an uninterrupted service for its customers.

The card copying security application was commissioned in all ATMs to protect customers from ATM fraud.

Customers are offered language options in English, German and Arabic.

Ziraat Participation’s target is to double the number of ATMs in parallel with its growth. Likewise, the Bank plans to double the number of financial transactions conducted through ATMs.

The Bank continued to carry out infrastructure investments in order to provide better quality and uninterrupted service at ATMs. In 2016, analysis of customer experiences will ensure better service provision at the ATMs. Meanwhile the Bank plans to raise the level of customer service at ATM’s by informing those responsible for the ATMs and their installation in electronic and mobile media by automating the follow up of the ATMs break down and supply status.

Another of Ziraat Participation’s targets is to enable customers to carry out a much wider range of transactions through ATMs easily and quickly by increasing the diversity of transaction sets offered in the ATMs.

Customer Satisfaction Center
The customer applications received by Customer Satisfaction Center in 2015 were processed.

The average solution duration of all notifications resolved in 2015 stood at 0.6 days - a much shorter period than industry values. The average resolution time for complaints was also successful at 0.9 days on average. The average turnaround time in customer satisfaction varies between 5‑7 business days in the industry; with these results, Ziraat Participation was among the banks generating the fastest solutions.

Ziraat Participation aims to obtain the ISO 10002 Quality management - Customer satisfaction - Guidelines for complaints handling in organizations certificate, completing the necessary work in 2016.

A number of projects in the field of mobile banking and a Digital Road Map will be implemented in 2016, with an uninterrupted service channel and products to be added to Ziraat Participation’s services.

Information Technologies (IT)
For a better performance, greater security and a richer product range
Performance, safety and product diversity are Ziraat Participation’s unchanging objectives in the information technologies field. In line with the needs of its customers, Ziraat Participation’s vision in the field of information technologies can be summarized as offering innovative products at the right time for the use of customers using the state of the art technological infrastructure.

In 2015, its first year of operation, Ziraat Participation put the following projects into practice within the scope of IT Business Development Activities:

• The company evaluation system was established for commercial and corporate customers.
• Customers were given the opportunity to carry out transactions through the Ziraat Bank channel.
• ERP, the enterprise resource management application, was commissioned.
• POS and member business infrastructure was put in place.

The following actions were carried out within the scope of IT Information Security and Risk Operations:

• Information Security review works were conducted and action was taken to raise awareness of Information Security.
• Within the scope of Banking Regulation and Supervision Agency Penetration Testing Regulation, penetration tests were carried out and solutions were sought for the shortcomings identified.
• New IT risks were assessed and added to the IT risk pool and action plans were created.
• An Information Security Plan for 2016 was set up.
• Corporate employees were provided with information security and risk training.

Within the scope of IT governance activities, the actions outlined below were implemented:

• An IT governance infrastructure was created.
• A segregation of duties matrix intended for the job descriptions of IT personnel was created.
• A project management reporting structure was created; project progress status began to be reported weekly.

The Information Technologies Committee meeting was held twice in 2015, attended by the senior management. The method of choice for IT projects was determined by the Committee. The 2016 capacity plan and project priorities were approved.

Within the scope of Information Technology and Infrastructure activities, the following processes were carried out:

• The establishment of business critical systems (ODM-Operational Data Model) that are evaluated in the context of business continuity were completed and ODM tests, that are legally mandated, were conducted on time.
• Within the scope of efficiency efforts, change management rules were identified and started to be implemented.
• A new team has been created to help deal with stress, as well as an expert on the IT Help Desk.
• Wireless access to the systems was provided by setting up a wireless network to improve operational efficiency in the General Directorate and at additional service points.

The systematic investments that will be carried out in the field of IT by Ziraat Participation will continue to reflect on the enterprise performance and consequently on profitability by continuously increasing efficiency per employee.

At the end of 2015, Ziraat Participation was operating with 458 employees in its Head Office units and 22 branches.

Human Resources
Human resources approach supporting growth
In line with Ziraat Participation’s strategy and objectives and applications in the field of human resources, Ziraat Participation aims to continue its activities by contributing to the performance development of its employees by creating a happy and efficient work environment and guiding employees in their business partnership with the units and the branches.

At the end of 2015, Ziraat Participation was operating with 458 employees in its Head Office units and 22 branches.

With its extensive branch network throughout Turkey, Ziraat Participation attaches importance to expanding its branch network in line with its objectives of providing a better service to its customers and touching every customer. In its first year of operation, it primarily focused on establishing branches in major cities, which is now followed by establishing branches in other provinces.

In the short span of just 7 months, it has achieved a major success by reaching a total of 22 branches.

OHS Committee
The OHS committee that will carry out the management of OHS was established in accordance with applicable laws and regulations in our country. The committee set up by Ziraat Participation includes a representative of the employer in accordance with the legal requirements, a human resources representative, at least one employee representative, an occupational safety specialist and an occupational physician.

Training
In its first year of operation, Ziraat Participation began to offer training programs to its personnel under different headings. In addition to vocational training, informative trainings regarding OHS training, office ergonomics, emergency management and infectious diseases were provided. In 2015, an average of 15.96 hours of training per employee was carried out.

Within the scope of human resources practices in 2015;

• The human resources needs of the General Directorate and the branches were met.
• Open positions in executive positions were filled primarily by assigning successful personnel with appropriate qualifications from internal resources.
• In order to increase the efficiency of the central operations and the staff on the payroll, the Bank aims to keep the number of personnel per branch at an optimal level.
• A doctor was on call within Ziraat Participation so employees of the General Directorate could quickly benefit from health services.
• Work on developing a system that will allow candidates who wish to apply to Ziraat Participation apply through the system started in 2015. Candidates will be able to create their CV’s and follow the open positions through this system. The recruitment process will be performed entirely through the Application Module System by enabling interview notes to be recorded through the system. Operational costs are aimed to be reduced by integrating the necessary information into the HR applications program, Humanist.

200 job opportunities
As part of its growth strategy, Ziraat Participation announced a Service Clerk Recruitment Examination, which will provide job opportunities to 200 people. The exam will be carried out in cooperation with Anadolu University. The Service Clerk Recruitment Examination will be carried out in seven locations in six provinces on 27 February 2016; efforts were taken to expand participation in the exam.