SME Jet Credit August 2016

With «SME Jet Credit» have targeted transformation in 3 key areas 3 target fields to be optimized A simple loan process with the least data and documentation requirements Faster access to loan Digitalization and omni-channel experience from application to disbursement Increasing efficiency in the lending process for SME segment will lead us to better results in terms of sales capacity as well as profit and loss balance Increasing operational productivity Enhancing customer experience Enhancing quality standarts Screen flow which supports sales conversation and price negotiation Simplified product/campaign selection interface Homogenous review of loan applications throughout all channels

We based our methodology on end to end process perspective, customer-centric view and zero-based design. Fundamental design principles Zero-based design Customer focused sales and service An approach that reflects the customer view to overall porcess End to end process perspective Completely integrated design considering every single step from application to disbursement Vision Design 5 minutes 1 system 31 entires Traditional Approach: «We can solve the main pain points by integrating 3 systems" Vision adapted to real lfie 20 minutes 1 system 75 entires Partial Enhancement 40 minutes 7 systems 200 entries Zero-based design: «We need a process flowing smoothly to maximize customer experience, ignoring the current constraints, » Current Process 60 minutes 7 systems 351 entries

We adopted very different way of working from traditions… The way we work is not Is actually Designed by the bank for the bank Designed with customer for the customers Siloed team or driven only by one part of the business Cross-functional team representing all relevant departments Located in different locations and rarely talk to each other Co-located in one “design studio” and talk anytime everyday Long online customer surveys One-on-one customer conversations Hundreds of pages of PowerPoint decks Visual display of screenshots, physical artifacts, sketched on studio walls/boards Constantly thinking about constraints Always thinking of the art of possible Team members unwilling and unable to make decisions Team members empowered and encouraged to make decisions Long process with endless follow-up audio conferences over weeks and months Time-boxed weekly agile sprints (planning, daily stand ups, demo, retro) Sponsors and steering group only involved at the beginning and the end Sponsors and steering group making design decisions and giving guidance every week Secret project no one knows Open invitation for all executives and colleagues to visit the “design studio”

… and employed a large organization for an inclusive solution Steering Committee Advisors Branches (Mixed and Commercial) Customer focus groups Divisions: Commercial Banking Product Consumer Loans SME Loans Underwriting Commercial Loans Underwriting Financial Analysis Digital Banking Commercial Banking Marketing Retail Banking Marketing Commercial Banking Sales SME Banking Sales Retail Banking Sales Risk Management Enterprise Architecture Softtech Retail Loans Monitoring and Recovery Commercial and Corporate Loans Monitoring and Recovery Retail Loan and Card Operations Foreign Trade and Commercial Loan Operations 4 C Level Managers 4 Division Heads Project Team Project Management Taskforce 1 Unit Manager from Enterprise Architecture Division 1 Manager from Commercial Products Division Credit Portfolio Management Division Consumer Loans Underwriting Division Analysis Team 1 Member from Credit Portfolio Management Division 1 Member from Commercial Products Division 1 Member from Digital Banking Division 2 Members from Retail Products Division

As a first step, we deeply analyzed the voice of external and internal customers Reaching data of corporations via system is a problematic issue Head Office Customer Line of credit is less than expected Proactive offer options are limited Distinction between retail and commercial process for retail micro segment customers is confusing RMs does not get back to customer calls quickly Product basket is not satisfactory Pricing process takes a long time Pricing can not be calculated according to collateral systematically Extensive collateral demanded by bank Scoring rates are low Underwriting process takes a long time Inquiry process takes a long time Extensive documents for application Loan product codes make things difficult Too many systems used during process Branch Many repeatative data entries are needed during process Operational work load on sales is too much Too many contracts needed to be signed Mass underwriting is not available

Applying our methodolgy to address the key issues raised by customers and employees, we have solved 6 areas in the process End-products Basic question to resolve Proposed customer journey in product selection and needs analysis Who does customer approach (access point)? How to ensure customers get the most effective products for credit? 1 Product choice List of data required in the new journey What is the minimum amount of information required Must-haves, Automated, Circumstantial, Optional, Obsolete/duplicate 2 Minimum data Proposed changes and technologies to improve straight through processing rate What would it take to have high level of auto approved/declined Affordability assessment Underwriting rules Missing data that could be collected earlier Aggregation rules(card limit) Risk appetite 3 Credit decisioning Recommendation on e-signature Recommendation on documentation How to minimise the burden for customers? Document scanning at source Document simplification (guarantee/loan agreement) 4 Documentation Online approach and customer journey in customer care What should be the right touch points with customers? How best to appropriately keep the customers informed? 5 Customer communication Proposed list of control points  What are the right control points along the new journey? 6 Control

As a result, we have achieved ~ 90% efficiency gain and significant recognition of success by users and customers Feedbacks of customers and branch users Results Current process New process Customers “Wow! That’s really good, really quick!” Number of fields entered “I like that the bank gives me that flexibility to not tie me into a loan that I don’t actually need.” TAT (Total Amount of Time (min)) 130 “I love the product choice; the tool makes it really easy to understand.” 5 # of systems used Branch users “The process is really easy.” “Knowing which documents is needed for which loan and which campaigns are available for which customer makes my life much easier.” # of channels available “It is very helpful to know the limit I can offer to customers before sales conversation.”