TEB Paran Hazır Hesabı – TEB Money Ready Account

All customers and prospects are able to apply to this loan with their National Identity via SMS, web, internet, call centre, IVR or branch to get an instant response to their application.

Innovation presentation

"Money Ready Account" is a brand new banking solution revolutionizing the way the consumers get access to funding in case of urgent needs. It is basically a dual limit overdraft account consisting of up to 12 month installment based facility with the conventional overdraft. "Money Ready Account" is designed to fulfill an unmet customer need in the market as well as to boost the Retail Bank’s profitability.

Convenient Application: All customers and prospects are able to apply with their National Identity via SMS, web, internet, call centre, IVR or branch to get an instant response to their application.

Instant Credit Decision: The credit decision is sent back to the mobile phone in maximum 20 seconds. There is an automated batch program evaluating applications and an automated decision engine is sending the response in real-time.

Practical Limit Utilisation through the ADCs: The customer can withdraw money from their "Money Ready Account” through ATM, Branch, Call Center, Internet branch and pay the money back in 12 months instalments. The customers have access to their pre-approved limit 7/24 through all ADC, the limit utilization process is optimized to take seconds.

After Sales Services: Customers have opportunities for early closure, early installment payments and partial balance closure for their repayment plans.

Special Debit Card: The customers carry their loan in their wallet with the specifically designed debit card.

Uniqueness of the project

The application to Money Ready Account is extremely practical. The customer or prospect applies with their National Identity Number via SMS, web, internet, call centre, IVR or branch to get an instant response to their application.

The product is an innovation that other banks in the market do not offer.

It is a new and innovative product in the market. Major differences could be given as;

- Double limits are issued

- Multiple channel access for application and utilization

- Specially designed debit card

- Utilization is simplified; payroll info is not asked, there is no need to go to the branch

- Assigned applications are seen on RM’s agenda to be called proactively

The product had been launched on 12 June 2012 and received two bronze awards; Consumer Marketing Campaign of the Year and Best New Product or Service of the Year - Stevie Awards on 15 August 2012.

The Reason Behind

Money Ready Account brings a new value to the market: consumers with a financial need lower than average consumer loan ticket size can satisfy their need in a convenient and quick way.

Money Ready Account is a product that bundles 2 different Overdraft Limits. The first limit can be used as a standard overdraft. The second limit can only be used with instalments. The instalment based limit is valid for 3 months. The interest rate charged is less than overdraft and slightly more than the conventional consumer loan.

Prospect Customer Assignments: Prospective customers with approved limits are expected to come to the branch for identity and workplace check. These customers are automatically assigned to TEB branches according to their residence address which is determined from government’s central address database accessible through the prospect’s National Identity Number. These customers are invited to the branches proactively by branch staff. The limits of these customers are instantly assigned after signing the essential documents.

Results

753K applications have been received in first 11 months following the launch of the product. 14.07% of the applications have been approved.

45% of applications is received via SMS, 33% via branches, 22% via ATM and other ADCs . 67% of applications have resulted in limit usage.

As of May 2013, Money Ready Account volume is 118 million TL, having 51% share in total O/D volume.