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FCNR DEPOSITS

With this account not only will you grow your foreign currency securely by

protecting it against exchange rate fluctuation but also earn interest at Indian

rates.

Under this scheme, you can open Fixed Deposit Accounts in USD, GBP, EURO, JPY,

AUD& CAD.

Hold your deposit in any of the 6 foreign currencies - US Dollars, Pounds

Sterling, Euro, Japanese Yen, Australian Dollars, Canadian Dollars

Repatriate principal and interest amount fully

Enjoy tax exemption on the entire deposit

Open the deposit jointly with other NRIs

Avail of Super Saver facility to get an overdraft on your NRO Savings / Current

account against your FCNR Fixed Deposit

Avail of the nomination facility

Minimum initial deposit -

USD 1,000/-, GBP 2,500/-, Euro 2,500/-, JPY 7,50,000/-, AUD 1,000/- , CAD

1,000/-

Minimum add-on deposit -

USD 1,000/-, GBP 1,000/-, Euro 1,000/-, JPY 7,50,000/-, AUD 1,000/-, CAD

1,000/-

Maintain the deposit for tenure of minimum 1 year and a maximum of 5 years


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RUPEEMAX

Make your Rupee earn more with RupeeMax

Presenting you with a forward cover product, designed to get you maximum

returns in INR. RupeeMax locks into an exchange rate to convert foreigncurrency investments into Indian Rupees.

Minimum deposit amount - USD 1000/ GBP 2500/ Euro 2500

No lock-in period

Earn higher yield than your normal FCNR Deposit / NRE Deposit

Repatriate the proceeds on maturity

Simplified documentation

ACCOUNTS FOR RETURNING INDIANS

At CORPORATION Bank, we offer 2 options for Returning Indians.

RFC SAVINGS ACCOUNT

Stay protected from exchange rate risks with your RFC Savings Account as you

can hold the Deposit in 4 foreign currencies and convert them into Rupees

anytime you desire.

Keep your foreign earnings in the same currency saving yourself from

exchange rate risks

Transfer balance to NRI Accounts on regaining NRI status

Withdraw cash in Rupees

Earn tax exemption on interest accrued on declaration of Resident but Not

Ordinarily Resident status


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Repatriate funds forbonafide purpose

Avail of the nomination facility

Receive quarterly statements for free. Monthly and duplicate statements are

charged nominally

Enjoy free 24-hour PhoneBanking

Enjoy the convenience of banking at any of our branches in India

Your RFC Savings Account is maintained in permitted currencies such as USD, GBP,

JPY, EURO.

RFC FIXED DEPOSITS

Enjoy the flexibility of converting your foreign currency deposits into Indian

rupees whenever required with RFC Fixed Deposits.

Book Fixed Deposit in 4 foreign currencies and protect your deposit fromexchange rate risks

Repatriate your funds for bonafide reasons (for account holders only)

Get TDS exemption on interest earned basis declaration of RNOR

status at the start

of the financial year
http://c/Users/furqAnz/Documents/HDFC%20BANK/New%20Folder/rfc_savings_account66666.htmhttp://c/Users/furqAnz/Documents/HDFC%20BANK/New%20Folder/rfc_savings_account66666.htmhttp://c/Users/furqAnz/Documents/HDFC%20BANK/New%20Folder/rfc_savings_account66666.htmhttp://c/Users/furqAnz/Documents/HDFC%20BANK/New%20Folder/rfc_savings_account66666.htm


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MONEY TRANSFER


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QUICK REMIT

Quick remit is the online money transfer service from CORPORATION Bank.

Completely free of charge, this service offers you the best exchange rates in town

without compromising on the security and agility of the service.

Superior exchange rates

Transfer money FREE of charge

Direct credit to your or your beneficiary's CORPORATION Bank Account in INR

Direct credit to your or your beneficiary's account with other banks (more than

54200 branches of over 90 banks across India)

Doorstep delivery of Rupee Demand Draft at over 1650 locations across India

Track your transfer through the online tracker and via e-mails

Maintain an address book of all beneficiaries

Send a personalised message with the remittances

Round-the-clock customer service assistance available at your service

Make online donations to a host of charitable trusts and organisations

CHEQUE LOCK BOX

Remitting money through Cheque LockBox is as simple as dropping off a local

cheque to your nearest mailbox. And within a few days, the cheque will be


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credited to your beneficiary's account in CORPORATION Bank without any hassles.

Safe and efficient, Cheque LockBox offers you a more economical way than a

SWIFT remittance to India.

All you need to do is

Fill in aCheque Box deposit slip

Attach a US dollar denominated cheque

Post it to a local mailbox

Through a central cheque collection system, our Correspondent Bank collects it,

sends it to for local clearing on the following working day and on receiving the

funds, we credit the beneficiary's account.

Post the cheques from the comfort of your home

Remit as much as you want to

Get more Rupees with superior exchange rates

TELEGRAPHIC WIRE TRANSFER

Transfer funds from a local bank outside India to your beneficiary's

CORPORATION Bank Account in India through our correspondent banks around

the world with Telegraphic / Wire Transfer. Also, you can open a Rupee or foreign

currency Fixed Deposit through remittance via wire transfer
http://www.hdfcbank.com/applications/misc/nri_lockbox_form.asphttp://www.hdfcbank.com/applications/misc/nri_lockbox_form.asphttp://www.hdfcbank.com/applications/misc/nri_lockbox_form.asphttp://www.hdfcbank.com/applications/misc/nri_lockbox_form.asp


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FUNDS TRANSFER

You can send cheques / Demand Drafts to your branch in India along with a letter

of instruction mentioning the account number where the funds have to be

credited.

We have an arrangement to collect cheques / drafts in the following currencies:

USD, GBP, EUR, CAD, SGD, AUD, JPY, NZD, HKD, CHF, SEK, NOK, AED

The clearing time required for USD cheques / Demand Drafts made payable in

New York is 10 -12 working days.

INVESTMENTS


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MUTUAL FUNDS

Mutual Funds offer you the simplest way of investing in increasingly complex

financial markets. With the advantages of diversification, liquidity, professional

management, etc. available with Mutual Funds, you can be sure of peace of mind

regards the growth of your hard earned money.

he reason that mutual funds are so popular is that they offer the ability to easily

invest in increasingly more complicated financial markets. A large part of the

success of mutual funds is also the advantages they offer in terms of

diversification, professional management and liquidity.


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Mutual Fund investments also offers you a lot of flexibility with features such as

systematic investment plans , systematic withdrawal plans &dividend reinvestment

.

They are available in units so this makes it very affordable. Because of the large

corpus, even a small investor can benefit from its investment strategy.

Inopen ended schemes , you have the option of withdrawing or redeeming your

money at any point of time at the current NAV.

Risk is lowered with Mutual Funds as they invest across different industries &

stocks.

Expert Fund Managers of the Mutual Fund analyse all options based on

experience & research.

The fund managers who take care of your Mutual Fund have access to

information and statistics from leading economists and analysts around the

world. Because of this, they are in a better position than individual investors to

identify opportunities for your investments to flourish.

The benefits of scale in brokerage, custodial and other fees translate into lower

costs for investors.

The Mutual Funds sector is regulated to safeguard the investor's interests.

Your relationship managers will help you determine your investment profile,

which will be based on your needs, possibilities and expectations. Your

investment profile will help you choose the type of investments that suits you the

best.
http://www.hdfcbank.com/nri_banking/investments/mutual_funds/mutual_funds.htmhttp://www.hdfcbank.com/nri_banking/investments/mutual_funds/mutual_funds.htmhttp://www.hdfcbank.com/nri_banking/investments/mutual_funds/mutual_funds.htmhttp://www.hdfcbank.com/nri_banking/investments/mutual_funds/mutual_funds.htmhttp://www.hdfcbank.com/nri_banking/investments/mutual_funds/mutual_funds.htm


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PORTFOLIO INVESTMENT SCHEME

Trade on recognised Indian stock exchanges under the Portfolio Investment

Scheme (PIS) through designated branches of CORPORATION Bank from any

corner of the world.

PRIVATE BANKING

At CORPORATION Bank, we understand the value of your time and the

opportunities it holds for you. Your personal financial investment needs might get

overlooked, while you attend to your business and professional needs. In line withthis, we are pleased to offer to you a customised Investment Advisory Service for

your existing portfolios and regular investable surpluses.

The service offers research based advice to optimise returns on your investment

portfolio across a range of financial instruments, keeping in line with your profile

and investment objectives. Your existing portfolio is analysed to advice you on

rebalancing to obtain an optimum asset mix. Here, a dedicated advisor regularly

guides you through the evolution of new market opportunities, to evaluate and

restructure your existing investment portfolio.

Multiple Recognition from Euromoney

A testament to our endeavor towards providing exceptional service to each of our

customers is the following rank that we have earned in a recently conducted

Euromoney survey.

Rated as the Best Private Bank in the Super Affluent Category in India.

Advisory Services

The starting point is profiling

The advice we give is as unique as you are. It is based purely on your appetite for

risk, time horizons and need for liquidity. So at the very inception, we work

intensively towards understanding you. Your requirements and profile is agreed


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upon and then documented through a consultative process. We take cognizance

of the fact that your profile is likely to change with time and hence we follow this

process on a continual basis.

Allocation

A time tested fundamental principle of investment

A lot of emphasis is laid on the mechanics of asset allocation, as we believe

that this is the basic tenet of portfolio optimisation. This involves allocating

your portfolio across various asset categories - essentially debt, equity and

cash. Deciding upon your asset allocation is a synthesis of science, art and

investment discipline.

Portfolio analysis and financial planning We analyse your existing portfolio

allocation and recommend changes in line with current opportunities, your

profile and cash flows, risk appetite and financial requirements.

A comprehensive investment plan is drawn out to meet your long and

short- term financial goals across multiple asset categories.

Portfolio review and tracking

Your portfolio is tracked on an ongoing basis to monitor the portfolio

returns, cash flows and asset allocation. We continually advice you on

appropriate rebalancing of your portfolio on the basis of performance of

each asset category and analysis of future expectations. All portfolios are

approved by our research desk on an ongoing basis.

Advice across asset categories

We offer research-based advice across asset categories like mutual funds,

equity and its derivatives, insurance and more. Hence, our service is a one-

stop-shop for your entire portfolio needs saving valuable time. Also, a

holistic view of your portfolio across all asset categories helps us advice youbetter and offer you a consolidated wealth statement.

Dedicated investment advisor

For you, time is priceless, which is why a trained personal advisor is

assigned to you as a one-point contact, guiding you and attending to all


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your investment related needs. The advisor on an ongoing basis helps you

restructure and monitor your portfolio based on research desk's

recommendations as well as provides procedural assistance, both through

online and offline modes.

Value added services

We also offer value added services that help your portfolio like transaction

audit for transactions done through CORPORATION Bank, tax guidance and

opinions in related areas.

Research Reports

In- house research desk

With the help of our experts, our advice comes unbiased as it is based on

due diligence, and does not follow the herd mentality. Selection of mutual

funds is based on broad parameters and is built on statistical models and

quantitative tools like standard deviation, volatility, rolling returns, expense

ratio and more. Active inputs are also taken from our equity desk in the

selection process. Our equity desk tracks various sectors and uses a

bottom-up approach to identify stocks. Exposure to these is recommended

basis on your risk profile be it conservative, aggressive or super

aggressive.

Research Reports

In this world of communication clutter, it is becoming increasingly difficult

to sift out information that is relevant to your portfolio. Multiple reports

running into multiple pages with points and sub-points leave you with

complex data you dont have time to go through. Our research reports are

designed to provide you relevant information in the simplest formats.

AAG At A Glance

An exclusive monthly magazine is available only to our investment advisory

clients. It is a widely acknowledged monthly publication produced by the

banks research team that analyses specific mutual funds, stocks, sectors


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and the equity / debt / forex markets, providing a sharp view of the equities

and debt markets

LOANS


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HOME LOANS

No matter where you are in the world, Home Loans from CORPORATION Ltd

make owning a home in India, simpler. Get your dream home in India at attractive

rates with flexible repayment options, minimum paperwork and a completeguidance at every step.

Home Loans from CORPORATION Ltd offers you

Attractive interest rates

Dedicated and experienced team of experts

Extensive branch - service center network

Expert legal and technical advisors

Safe document storage facilities

turn your dreams into reality by owning the home of your dreams.

LOAN AGAINST SECURITIES

With CORPORATION Bank's Loan against Securities, you can get an overdraft against yoursecurities like Equity Shares, Mutual Fund Units, US 64 Bonds, while still retaining ownership.

NRI PREFERRED BANKING


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Exclusivity is the word to describe the CORPORATION Bank NRI Preferred Banking

experience. With a dedicated Relationship Manager who helps you every step of

the way for your financial and banking needs, you are in for exclusive privileges

and benefits.

Dedicated Relationship Manager for all your financial needs and to help you

make sound investment decisions

Exclusive privileges:

Free International Gold Debit Card, with a higher spending limit of up to Rs.

50,000 and a cash withdrawal limit of up to Rs. 50,000/- per day

Combined monthly statement of your Savings and Fixed Deposit Accounts

No minimum balance requirement in your accounts

Free 'at par' cheque books on your Savings Accounts

Free Alerts on your mobile phone or in email inbox with InstaAlert

Free standing instructions facility

Preferential Forex rates

50% discount on locker charges

Preferential loan rates

Multiple investment options like Rupee deposits, FCNR and Offshore deposits,

Mutual Funds, Insurance, trading in the Indian Equity market, Currency

forward covers and tax savings investments

Buy, sell your Mutual Funds and view your portfolio online, with updated NAV

values and other relevant detailsTrade in equities on recognised Indian stock exchanges under the Portfolio

Investment Scheme* (PIS)

Avail of online trading services through CORPORATION Securities and link your

Savings, Demat, PIS and Trading Accounts to enjoy a seamless flow of funds

and shares between your accounts


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Sign up for our Private Banking Services* and benefit from our extensive

research across Equities, Debt, Mutual Funds and Commodities.

Waiver of up to Rs.2,500 per annum on a host of service charges:

Demand Draft / Manager's cheque charges

Inter-branch funds transfer charges

Cheque return charges

Stop payment charges

Cheque collection charges

Outward remittance charges

DD cancellation charges

Hold mail charges

Duplicate statement charges

Recovery of old records charges

PAYMENT SERVICES

BILLPAY

Enjoy the convenience of paying your telephone, electricity and mobile phone

bills through the Internet, ATMs and telephone - using BillPay, a

comprehensive bill payments solution.

No queuing up at collection centres or writing cheques


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Variety of payment modes - Internet, ATMs, Telephone

Payments can be made right up to the due date

Check your bill amount before you make any payments - ensuring you pay the

exact amount

DIRECTPAY

Shop online without cash or Debit / Credit Card with Direct Pay. All you need is

your CORPORATION Bank Savings/Current Account

Shop online on any websites offering CORPORATION Bank's Direct Pay

facility

Select the products that you would like to purchase

In the checkout process, select CORPORATION Bank's NetBanking as

your option

Authorise the transaction using your Customer ID and NetBanking

password

The purchases are debited directly to your account and credited to the

account of the establishment (or the website where the purchases were

made)

Apart from Sh0pping you can also Purchase railway tickets, pay your

telephone, mobile bills and insurance premium online

Offers highest level of security with 128-bit SSL (Secure Socket Layer)

encryption

Your NetBanking details (Customer ID and password) are kept

confidential and cannot be viewed by the merchant
http://www.hdfcbank.com/personal/payments/directpay_list_revamp.htmhttp://www.hdfcbank.com/personal/payments/directpay_list_revamp.htmhttp://www.hdfcbank.com/personal/payments/directpay_list_revamp.htmhttp://www.hdfcbank.com/personal/payments/directpay_list_revamp.htmhttp://www.hdfcbank.com/personal/payments/directpay_list_revamp.htm


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INSTAPAY

Pay your bills, make donations to charity organisations or subscribe to magazines

by logging on to the CORPORATION Bank website. All this, without the hassles of

registration!

No need to stand in queue or write cheques, pay at your convenience

from home or office

No need to register for the service before paying bills

Make electric bill payments at least 2 days before the due date

You need to have NetBanking password for making the payments

Submit the correct bill details, incorrect details will lead to wrong

payments to the utility company. In such a case, customers will have to

follow up with utility company

NETSAFE

NetSafe, is a unique online payment solution that offers you complete security

while shopping on the Internet. Just create a virtual card (NetSafe Card) from your

CORPORATION Bank Visa Credit / Debit Card number with the amount desired by

you. Use it at online merchant sites to shop conveniently.

Your CORPORATION Bank Credit / Debit Card number is never revealed

on the merchant website

NetSafe Card you create is a one-time use card

Set your own limit for the NetSafe Cards you generate

Use it on all merchant websites that accept VISA/MasterCard Credit

Cards


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Purchases made with your NetSafe Card appear on your statement, just

like any other transaction

Registration for NetSafe is a one-time process after which you can generate

NetSafe Cards anytime, anywhere. So, go ahead and enjoy a safe onlineshopping experience with NetSafe!

NGPAY

Transfer funds, shop on your mobile with select merchants from wherever you

are with ngpay.

ngpay offers a range of services from its network of partners. In a simple,

consolidated menu, you can discover and choose merchants or service providers

with whom you want to transact.

Access your CORPORATION Bank account:

Full suite of Mobile Banking and Payment Services including Fund

Transfer facility. You can transfer funds to any CORPORATION Bank

Account or any Visa Card (Debit or Credit) within India using ngpay.

Movie ticket booking:

Book movie tickets at Big Cinemas, Fame Cinemas, INOX Cinemas, PVR,

Fun Cinemas, FilmsNTickets, Indian Stage etc; Search for shows, select /

view seats and pay for tickets

Book travel tickets:

One stop solution for all your travel needs. Plan your journey through

IRCTC, KingFisher Airlines, Make-My-Trip, Yatra, redBus, Savaari, KSRTC

etc

Shopping:

Send flowers & gifts, purchse books, and much more through Ferns N

Petals, Gifts 360, Landmark, Archies, FutureBazaar, Asian Sky Shop and

many more


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WAYS TO BANK

BANKING ONLINE

Net Banking

View account balances & statements

Transfer funds between accounts

Pay bills, and much more

Email Statements

FREE statements for Savings and Current Accounts

Monthly statements for savings accounts

Daily / weekly / monthly statements for current accounts


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BANKING WITH YOUR PHONE

Mobile Banking

Use ngpay for a wide range of financial transactions

Transfer funds, shop on your mobile, and more

InstaAlerts

Receive real-time account updates on your phone or email

Register for InstaAlert using NetBanking

BANKING IN PERSON

P.O. Boxes

Send your account instructions to a local P.O. Box, and have them reach us

free of charge

NRI Centers in India

Get help with NRI-related accounts or queries at select branches across

India

OneView

Manage multiple accounts with different banks

Remember only ONE password.

No charges whatsoever - Absolutely FREE!

Phone Banking

Dial in to Phone Banking to perform transactions.


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Talk to a Phone Banker, for live assistance.

NRI Access Points

We have representative offices to serve you in the Gulf, Kenya and HongKong

ATMs

24-hour access to cash, view mini-statement, order cheque books, recharge

your prepaid cards, all from our wide network of over 4,232 ATMs.


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1. Introduction

Today, many businesses such as banks, insurance companies, and other service

providers realize the importance of Customer Relationship Management (CRM) and

its potential to help them acquire new customers, retain existing ones and maximize

their lifetime value. At this point, close relationship with customers will require a

strong coordination between IT and marketing departments to provide a long-term

retention of selected customers. This paper deals with the role of Customer

Relationship Management in banking sector and the need for Customer Relationship

Management to increase customer value by using some analitycal methods in CRM

applications.

CRM is a sound business strategy to identify the banks most profitable customers

and prospects, and devotes time and attention to expanding account relationships withthose customers

through individualized marketing, repricing, discretionary decision

making, and customized service-all delivered through the various sales channels that

the bank uses. Under this case study, a campaign management in a bank is conducted

using data mining tasks such as dependency analysis, cluster profile analysis, concept

description, deviation detection, and data visualization. Crucial business decisions

with this campaign are made by extracting valid, previously unknown and ultimately

comprehensible and actionable knowledge from large databases. The model

developed here answers what the different customer segments are, who more likely to

respond to a given offer is, which customers are the bank likely to lose, who most

likely to default on credit cards is, what the risk associated with this loan applicant is.

Finally, a cluster profile analysis is used for revealing the distinct characteristics of

each cluster, and for modeling product propensity, which should be implemented in

order to increase the sales.

2. Customer Relationship Management


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In literature, many definitions were given to describe CRM. The main difference

among these definitions is technological and relationship aspects of CRM. Some

authors from marketing background emphasize technological side of CRM while the

others considers IT perspective of CRM. From marketing aspect, CRM is defined by

[Couldwell 1998] as .. a combination of business process and technology that seeks

to understand a companys customers from the perspective of who they are, what they

do, and what they are like. Technological definition of CRM was given as .. the

market place of the future is undergoing a technology-driven metamorphosis

[Peppers and Rogers 1995]. Consequently, IT and marketing departments must work

closely to implement CRM efficiently. Meanwhile, implementation of CRM in

banking sector was considered by [Mihelis et al. 2001]. They focused on the

evaluation of the critical satisfaction dimensions and the determination of customer

groups with distinctive preferences and expectations in the private bank sector. The

methodological approach is based on the principles of multi-criteria modeling and

preference disaggregation modeling used for data analysis and interpretation. [YliRenko et al. 2001]

have focused on the management of the exchange relationships

and the implications of such management for the performance and development of

technology-based firms and their customers. Spesifically the customer relationships of

new technology-based firms has been studied. [Cook and Hababou, 2001] was

interested in total sales activities, both volume-related and non-volume related. They

also developed a modification of the standard data envelope analysis (DEA) structure

using goal programming concepts that yields both a sales and service measures.

[Beckett-Camarata et al. 1998] have noted that managing relationships with their

customers (especially with employees, channel partners and strategic alliance

partners) was critical to the firms long-term success. It was also emphasized that

customer relationship management based on social exchange and equity significantly


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assists the firm in developing collaborative, cooperative and profitable long-term

relationships. [Yuan and Chang 2001] have presented a mixed-initiative synthesized

learning approach for better understanding of customers and the provision of clues for

improving customer relationships based on different sources of web customer data.They have also

hierarchically segmented data sources into clusters, automatically

labeled the features of the clusters, discovered the characteristics of normal, defected

and possibly defected clusters of customers, and provided clues for gaining customer

retention. [Peppers 2000] has also presented a framework, which is based on

incorporating e-business activities, channel management, relationship management

and back-office/front-office integration within a customer centric strategy. He has

developed four concepts, namely Enterprise, Channel management, Relationships and

Management of the total enterprise, in the context of a CRM initiative. [Ryals and

Knox 2001] have identified the three main issues that can enable the development of

Customer Relationship Management in the service sector; the organizational issues of

culture and communication, management metrics and cross-functional integrationespecially between

marketing and information technology.

3. CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources gain

insight into the behavior of customers and the value of those customers. If it works as

hoped, a business can: provide better customer service, make call centers more

efficient, cross sell products more effectively, help sales staff close deals faster,

simplify marketing and sales processes, discover new customers, and increase

customer revenues.It doesn't happen by simply buying software and installing it. For

CRM to be truly effective, an organization must first decide what kind of customer

information it is looking for and it must decide what it intends to do with that

information. For example, many financial institutions keep track of customers' life


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stages in order to market appropriate banking products like mortgages or IRAs to

them at the right time to fit their needs. Next, the organization must look into all of

the different ways information about customers comes into a business, where and how

this data is stored and how it is currently used. One company, for instance, may

interact with customers in a myriad of different ways including mail campaigns, Web

sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and

advertising efforts. Solid CRM systems link up each of these points. This collected

data flows between operational systems (like sales and inventory systems) and

analytical systems that can help sort through these records for patterns. Company

analysts can then comb through the data to obtain a holistic view of each customer

and pinpoint areas where better services are needed. In CRM projects, following data

should be collected to run process engine: 1) Responses to campaigns, 2) Shipping

and fulfillment dates, 3)Sales and purchase data, 4) Account information, 5) Web

registration data, 6) Service and support records, 7) Demographic data, 8) Web sales

data.

4. A Model Design for CRM At Garanti Bank

Garanti Bank, one of the leading banks in Turkey were looking at new ways to

enhance its customer potential and service quality. Electronic means of banking have

proved a success in acquiring new customer groups until the end of 2001. After then,a strategic decision

was made to re-engineer their core business process in order to

enhance the banks performance by developing strategic lines. Strategic lines were

given in order to meet the needs of large Turkish and multinational corporate

customers, to expand commercial banking business, to focus expansion in retail

banking and small business banking, to use different delivery channels while

growing, and to enhance operating efficiency though investments in technology and

human resources


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To support this strategy Garanti Bank has implemented a number of projects since

1992 regarding branch organization, processes and information systems. The

administration burden in the branches has been greatly reduced and centralized as

much as possible in order to leave a larger room to marketing and sales. The BPR

projects have been followed by rationalizing and modernizing the operational systems

and subsequently by the introduction of innovative channels: internet banking, call

center and self-servicing. In parallel, usage of technology for internal communication:

intranet, e-mail, workflow and management reporting have become widespread.

4.1.CRM Development

To be prepared to the changing economic conditions and, in particular, to a rapidly

decreasing inflation rate scenario Garanti Bank has started timely to focus on

developing a customer relationship management (CRM) system. The total number of

customers is presently around two millllions, but an increase to roughly three millions

is foreseen as mergings with Osmanli Bank and Koferzbank are achieved and the

present growth targets are reached.

The importance for the bank of managing the relationhips with their customers has

been the drive of the joint projects that have been developed with IBM in the last

three years. During the projects a number of crucial technological and architecture

choices have been made to implement the entire process. Realizing the importance of

customer information availability the first of these projects has focussed on the

problem of routinely collecting and cleansing data. The project has been undertaken

by the bank with the spirit that has characterized the whole CRM development. The

project has promoted a massive involvment of the branches, namely of the portfolio

managers and campaigns have been launched for popularizing among branch staff the

importance of gathering and maintaining reliable customer data. Another set of


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methods have been tested for customer not included in portfolios (pool customers),

such as mailing or distributing questionnaires in the branches or using automatic teller

machines (ATM) and the call center. Methods for data checking and testing have been

developed to be routinely employed by the bank's staff. Results obtained are very

good: for portfolio customers data available are respectively 98% for the commercial

ones and 85% for the retail ones. For pool customers availability goes down to 65%:

this is a well-known phenomenon due to the loose relationship with the latter

customers.4.2. Data Warehouse and Data Mining

The Data warehouse is the core of any decision suppport system and hence of the

CRM. In implementing its Data Warehouse Garanti Bank has selected an incremental

approach, where the development of information systems is integrated with the

business strategy. Instead of developing a complete design of a corporate Data

Warehouse before implementing it, the bank has decided to develop a portion of the

Data Warehouse to be used for customer relationship management and for the

production of accurate and consistent management reports. Here we are not concerned

with the latter goal, but are concentrating on the former.

The Data Warehouse has been designed according to the IBM BDW (Banking Data

Warehouse) model, that has been developed as a consequence of the collaboration

between IBM and many banking customers. The model is currently being used by 400

banks worldwide. The Garanti Bank Data Warehouse is regularly populated both

from operational systems and from intermediate sources obtained by partial

preprocessing of the same raw data.

Figure 1. The process of Relational Marketing

It includes customers' demographic data, product ownership data and transaction data

or, more generally product usage data as well as risk and profitability data. Most data


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are monthly averages and today's historical depth is 36 months starting from 1/1/1999

to 12/31/2001. As new data are produced they are placed temporarily in an

intermediate, from which they are preprocessed and transferred to the warehouse. The

importance of the Data Warehouse stems from the analysis of Figure 1. As a result of

strategic decisions customer analysis is carried out by using data continuously

updated as well the analytical methods and tools to be described later on. The CRM

group analyzes results obtained and designs action plans, such as campaigns,

promotions, special marketing initiatives, etc. Plans developed are then implemented

by means of the several channels used by the bank to reach cusomers. Evaluation or

results completes the cycle. The results become an integral part of the description of

the bank-customer relationship in the warehouse. The learning cycle is thus complete

and results obtained can be reused in future analyses and in future marketing plans. Itis easy to

understand that the Data Warehouse cannot actually be built 'once for all'

but is a kind of living structure continuously enriched and updated as the Relational

Marketing activity developes. OLAP (On Line Application Programming) analyses

are developed by means of Business Object in its web version. CRM analysts use this

tool to issue complex SQL queries on the Data Warehouse or on the Analytical

Datamart and carry out mono and bivariate statistics on the whole customers'

population or on selected groups. Figure 2 shows general structure of Relational

Marketing Activity.

Figure 2.The Relational Marketing process is supported by a computing infrastructure

where many software packages are integrated with the bank's information system.

Data Mining analyses are not carried out directly on the Data Warehouse, but on the

Analytical Datamart by means of the software package IBM Intelligent Miner

[Cabena et.al. 1999], using as a computing and data server the same mainframe where

the Data Warehouse resides. Garanti Bank believes these tools and methodologies are


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a powerful competitive weapon and is investing heavily in the human resources

needed to develop these analyses.

The Analytical Datamart is derived from the Data Warehouse through the following

steps: 1)Raw data processing: data selection, data extraction, and data verification

and rectification 2) Data modelling and variable preprocessing: variable selection,

new variable creation, variable statistics, variable discretization. The above

processing, based on traditional data analysis, is strictly dependent on the investigated

process; new variable creation, for instance, is intended to aggregate information

contained in the raw data into more expressive variables. A simple example is the

number of credit transaction on current account, that contains much of the

information contained in the individual transactions, but is easier to analyze and

represent. Variable discretization, based on the distribution of the original variables, is

intended to generate categorical variables that better express the physical reality ofthe problem under

investigation. The Analytical Datamart is customer centric and

contains the following data:

1. demographic (age, sex, cultural level, marital status, etc.)

2. ownership of bank's product/services

3. product/services usage (balance, transactions, etc.)

4. global variables : profit, cost, risk, assets, liabilities

5. relationship with the bank: segment, portfolio, etc.

Figure 3. The marketing campaign process and the software supporting it.

4.3.Marketing Campaigns

After analyzing strategic and analytical CRM we concentrate here on the equally

important operational aspects. Marketing Campaigns is the first method that Garanti

Bank has used to test the above described analyses and techniques. The overall

campaign process is reported in Figure 3, that shows that propensity determination


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and targeting are the first step of the whole activity.

A number of experimental campaigns have been designed and carried out to test the

soundness of the approach before attempting a large scale roll-out. Experimental

campaigns have addressed about 900 customers selected within six branch offices in

Instanbul. An education process has been started by meeting sales forces in the branch

offices, by distribution of an explanation booklet and by publishing on the Intranet a

note explaining the whole process.

System interfaces have been modified in order to track the customers under

promotion, as well as to enable salespeople in the branch office to complete the sales

on promoted customers as well as to record the fact that the sale was a consequence of

the promotion. The bank has so far used for promotion two channels: the salespeople

in the branches and the call center. Each channel was used in four different

campaigns.Figure 4. Summary table of experimental promotions deployed by Garanti Bank.

The activity of the call center was supported by the Goldmine software package,

while the overall campaign management was achieved through Valex. This product

used customer data stored in the Data Warehouse and at the same time manages itself

a smaller local database, where campaign data are temporarily stored (list of

customers, date of promotion, responses, etc.). These data must be copied manually

into the Data Warehouse when the campaign has been completed.

Table in Figure 4 reports a summary of the campaigns deployed and the results

thereof. By considering that the maximum response rate obtained by campaigns run

by using traditional methods is normally around 1-2%, we see that the benefit of

using targeted campaigns is very remarkable. As precise measurements on results

obtained by the bank by using traditional methods are not available, we cannot

accurately quantify the improvement. An indirect measurement of this improvement


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comes from the observation that in the timeframe where investment funds campaign

were run, the branch offices included in the promotion record an increase in product

purchase of about 214%, against an average 6% throughout the Bank.

Table in Figure 4 shows also that the results obtained by using the call center as a

promotion channel are equally satisfactory, with the single exception of a low result

obtained on the first campaign on investment funds.

5.Conclusions

Results obtained by extensive usage of customer data to develop and apply Relational

Marketing have convinced the Garanti Bank to proceed along the line undertaken. As

lists of customers eligible for four very important banking product/services are

available, as above described, the following actions are now being deployed:1. extension of promotions

to a larger customer population by having sales

people in the branches contacting progressively 15,000 customers

2. targeted campaigns through Internet and the call center for customers

actively using one or both of these innovative channels for their banking operations.

The same approach is now being extended to small and medium businesses and to

commercial customers. Moreover the analytical and strategic CRM cycle is being

completed by developing an application analyzing customers' attrition and deploying

strategies to reduce it.