KKB’S PRODUCTS AND SERVICES

KKB’S PRODUCTS AND SERVICES

Name of the Service

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2021

Limit Control System (LCS)

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Personal Credit Rating (PCR)

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False Information/Document/Declaration/Application Alert System (SABAS)

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Internet Frauds Alert System (IFAS)

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Personal Indebtedness Index (PII)

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Cheque Report

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Risk Report

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GeoMIS - Map-Based Reporting Service

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Agricultural Loan Assessment System (TARDES)

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Cheque Index

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Central Decision Support Systems (CDSS)

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Commercial Credit Rating (CCR)

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Prescribed Accounts

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Address Processing Service

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Cheque Status Inquiry Service

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Farmer Registry System (FRS)

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My Findeks Rating Consultant

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Findeks Warning Services

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Findeks Tracer

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Trade Registry Sharing System (TRSS)

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Letter of Guarantee Status Inquiry (LGSI)

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Collection Scores

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Inclination Scores

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Central Invoice Registration System (CIRS)

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IBAN Validation Service

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LCS Customer Objections Handling System (LCS MIDES)

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Application Fraud Attempt Detection and Prevention Service

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Credits Analysis Portal

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Cheque Analysis Portal

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Address Processing - Maps Service

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Loan Extension Instant Sharing Service (KAPS)

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Electronic Letter of Guarantee

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Findeks QR Code Cheque Registration System

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BRSA Product and Service Fees Portal

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NOVA

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Cheque Score

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Turkish ID Number - GSM Verification

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Commercial Indebtedness Index (CII)

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Fraud Net

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Agricultural Loan Score

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LIMIT CONTROL SYSTEM (LCS)

The LCS is a real-time system developed by KKB to meet the country’s needs.

Pursuant to the Law on Bank Cards and Credit Cards, the total limit of credit cards that may be granted by all banks to a customer who will begin to use a credit card for the first time may not exceed an amount calculated as twice their income for the first year, and four times their income for the second year. Pursuant to the regulation dated 8 October 2013, credit limits apply to all credit cardholders.

KKB initiated work on this subject in collaboration with the TBB Credit Cards Working Group, commencing the test run of the Limit Control System (LCS) in late 2013. As of January 2014, all members had uploaded customers’ credit card data into the system.

Designed and developed by KKB to meet the country’s needs, the Limit Control System runs in real-time.

Pursuant to the Law on Bank Cards and Credit Cards, the LCS enables credit card issuers to manage the single limit application by combining credit card limits assigned by credit card issuers for each customer.

With effect from 1 March 2014, sanctions were implemented within the Limit Control System (LCS) under the following conditions:

If there are missing records in the first notification file transmitted, or if a subsequent addition has been attempted,
If the FTP notification does not comply with the standards or is not made within the specified time.
If the final limit is notified wrongly
If the current limit is communicated incorrectly.

With the launch of the LCS Urgent Updating service, members were able to perform reduction, closure, and record correction transactions without document circulation in order to facilitate correction of limits notified as part of the LCS.

LCS CUSTOMER OBJECTIONS HANDLING SYSTEM (MIDES)

The LCS MIDES allows objections to erroneous or incomplete data shared using the LCS can be managed by KKB members.

The LCS MIDES provides a platform for KKB members to handle customer objections related to incomplete or incorrect information shared via the LCS.

If a customer believes that the information shared through the LCS is incomplete or incorrect, they may initiate an objection process in the LCS MIDES by using the reference number generated for the inquiry. Regarding objections submitted by members, the process runs between objecting and responding parties through the MIDES screens. If the responding member replies to an objection with a value lower than the LCS value, the process continues via the LCS Urgent Updating screen with the responding member updating their reply.

the LCS MIDES was developed to respond to customer objections quickly and clearly and to carry out all related communications in accordance with defined standards. It aims to shorten the objection process and increase customer satisfaction.

RISK REPORT

The Risk Report reveals the past loan payment performance of loan products issued by banks.

The Risk Report is a KKB product which sets out the past loan repayment performance of natural persons and legal entities.

The credit registry data held by KKB consists of customer information shared by all institutions and organizations which are members of KKB. The report is prepared on the basis of this information and submitted without changes. The report goes beyond those published by its world peers in terms of design and content as a result of the enrichment activities carried out in 2014. The following information is provided in the report:

Limits, risks, past payment performance and credit card payment details of the respective individual
Number of financial institutions which issued the notification
Total number of credit accounts
Total limit and balance data
Date of last loan utilization
Number of overdue credit accounts
Total amount of overdue balance
Longest overdue period to date
Details of non-performing loans, if any
Leasing - Factoring combined data
The rating percentiles which indicate customer’s credit rating percentile throughout Turkey
The worst-case in the repayment history
Longest overdue period to date
Liabilities of credit card holders, outstanding balance under prosecution, credit utilization ratio, balance of outstanding installments
For consumer loans: information such as outstanding balance under prosecution, credit utilization ratio, number of installments, amount of installments.

The Risk Report also includes the repayment performance for each loan over the past 18 months, while providing an overview of repayment performance in the financial sector. The Risk Report not only contains negative information, such as overdue payments or records under prosecution but also positive information, such as timely repayment of loans. Therefore, the Risk Report offThe enactment of the Law Amending Cheque Law No. 6273, which was promulgated in the Official Gazette No. 28193 (Repeating) dated 3 February 2012, abolished the sanction imposed on issuers of bounced cheques and ushered in a new era in the Turkish economy in terms of receivables risk management.

Platforms through which information required for proper management of risk and enabling accurate decision making on the part of the bearer of the cheque on whether or not to accept a cheque aim to protect both the cheque issuer and the bearer.

The “Cheque Report Presentation System”, which was implemented by KKB in April 2012 in order to render cheques, a common payment tool, more secure, is a service established to provide the cheque reports it produces and the past cheque payment information, which the cheque bearers will need regarding issuers in order to reach a sound decision.

Within the scope of the report, in which the past cheque payment information of the cheque issuer can be easily accessed;

Banks where the customer holds a cheque account,
The number of cheques presented since 2007,
The number and amount of cheques paid upon presentation,
The number and amount of cheques bounced and still unpaid since 2009
The number and amount of cheques bounced but subsequently paid since 2009
Date of the first cheque presented
Date of the first cheque presented and dishonored
Date of the last cheque presented and dishonored
Date of the last cheque paid upon presentation
Number and amount of cheques paid during the last 1, 3, and 12-month periods
Number and amount of cheques dishonored during the last 1, 3, and 12-month periods
List of dishonored cheques limited to the most recent 50 cheques
Number of open cheques remaining unpaid or non-dishonored
Number and amount of post- dated cheques remaining unpaid or non-dishonored
Number of cheques unreturned to the banking system,
Cheque Index,
Table showing the lowest, highest and average amounts of cheques by year,
Data of open cheques in addition to collection guarantee cheques,
Issuers’ postdated and open cheques, in addition to bounced and paid cheques.

The report enables the tracking of the positive or negative cheque payment performance of the account holder. The report also shows how many banks have issued cheque books to the account holder and gives an idea about the credibility of the person in question. If the Cheque Report is used at the time of cheque acceptance, it is possible to predict the probability of the cheque bouncing with up to 80% accuracy.

Reports can be required by real sector players from the counterparty at every platform of commercial transactions via online devices or online. Through online report applications, real sector players can obtain a cheque report or a risk report of a debtor from the said debtor or, with their approval, directly from the KKB inquiry system to control their receivables risk. KKB has set an example worldwide with its unique infrastructure, which enables the requesting of cheque reports by obtaining online consent from third parties; moreover, the system is integrated with all banks in Turkey.

CHEQUE STATUS INQUIRY SERVICE

With the Cheque Status Inquiry Service, it is aimed to find out whether the cheque is in circulation by making an online inquiry about the status of accepted cheques.

With the Cheque Status Inquiry Service, which has been developed in order to prevent cheque fraud, which has increased recently, it is aimed to find out whether the cheques are in circulation by querying the status of the received cheques online. Thanks to the system that works by making an online inquiry through the bank that issues the cheque, it is possible to obtain information about whether the cheque transmitted from the addressee bank is in circulation.

The inquiry will be used to prevent the possibility of a certain cheque being a copy of the original cheque by determining whether the cheque in question has been returned to the banking system, or whether it is received by any bank for collection or collateral purposes. In order to pave the way for a safer commercial life in Turkey, KKB has offered this service to the entire financial sector as part of the “Measures Taken to Prevent Cheque Fraud.”

With the studies carried out and the information obtained from new data services, work for the dissemination of KKB products continues. One such area of activity was the renewal of the Cheque Status Inquiry (CSI) application. The application was developed as a new application independent of the existing CSI application with the new services of the CSI service. After the improvements carried out, it is possible to conduct inquiries about cheques which are in circulation through the MICR code found on the cheque and also through the security code prepared as a feature to increase the security of the QR code.

THE CHEQUE INDEX

The Cheque Index, which summarizes cheque-using habits and the reliability of a cheque issuer, is a graphical risk indicator based on a score for the market derived from the cheque payment data of natural and legal persons.

The Cheque Index evaluates the cheque payment behavior of legal or natural persons as a measurable factor. If there have been problems in the payment of a cheque, the Cheque Index’s calculation reflects the number and amount of such problems. The cheque bearer may easily view the standing of a cheque issuer on a simple diagram and compare their position with other cheque issuers.

The Cheque Index, calculated statistically through an analysis of detailed data in the Cheque Report, facilitates interpretation of the reports and sound decision-making, hence ensuring time and resource savings. Institutions which will carry out transactions against cheques, instead of trying to interpret detailed data on the history of the cheque in the Cheque Report, with the evaluations they carry out using the Cheque Index, which is calculated statistically by the analysis of these data can have an idea about the reliability of the cheques they accept as collateral, are able to reach consistent predictions in regard to whether the cheque will be paid on due date and thus will be able to minimize any financial loss in the event of the cheque being dishonored.

PERSONAL CREDIT RATING (PCR)

The Personal Credit Rating is used to predict the extent to which the loan will be repaid when compared to another consumer.

The Personal Credit Rating is a numerical indicator calculated by KKB for individual customers, to predict and compare customers’ ability to repay loans they have obtained or will obtain from KKB-member institutions. The Personal Credit Rating, which is a decision support product developed using a statistical model, provides a summary of data pertaining to loan repayments of customers obtained via the Credit Reference System (CRS).

The Personal Credit Rating enables lending institutions to reach rational, standardized risk decisions while substantially shortening the decision-making process. As a result, customers are able to access loan products in a shorter space of time. KKB launched the fifth version of the Personal Credit Rating in 2017.

PERSONAL INDEBTEDNESS INDEX (PII)

The PII is a score-based risk index developed to help achieve better prediction of potential risks.

The Personal Indebtedness Index (PII) is a score-based risk index developed by KKB to introduce a new risk perception to the banking and finance industry and to enable better prediction of potential risks. The PII aims to identify persons who are have a tendency to run up excessive debts, even though they may not have shown any signs of repayment problems in the past.

The objectives of the PII include:

Establishing an early warning system by identifying those persons who use a new loan to pay off an existing debt and who are therefore increasingly incurring more debt, even though they may not have demonstrated any indications of repayment problems in the past,
Ensuring responsible lending,
Enabling users to reach more accurate decisions concerning matters such as determining credit limits and risk-based pricing,
Improving the quality of the lending decision systems of banks.

Accordingly, the PII was designed to predict the individuals which would become “excessively indebted” within one year following the date of the inquiry, even if they were not expected to become insolvent within the same period.

In addition to the definition of a “non-performing loan” (i.e., persons who have failed to pay three installments in succession, persons who are under legal prosecution, persons who are classified as having an uncollectible account), which risk prediction models try to forecast, the PII also detects signs of “excessive indebtedness.” In that context, PII was developed to identify persons who have an outstanding non-guaranteed debt exceeding TRY 250 and to predict excessive indebtedness.

COMMERCIAL CREDIT RATING (CCR)

The CCR is a rating score ascribed to the credit worthiness of the relevant firm in order to facilitate commercial credit analysis.

The Commercial Credit Rating (CCR) is an evaluation of the creditworthiness of a firm, which is used to facilitate commercial credit analysis. The CCR can be queried by member banks and other financial institutions as part of inquiries conducted through the Corporate Bureau, which keeps a record of credit histories.

The CCR is based on demographic data, loan data and the cheque payment performance, and is used to predict the extent that an enterprise will fulfill its repayment obligations of a loan obtained from a member. The higher the CCR, the less likely the firm is to be classified as an NPL within 12 months of the inquiry date.

Financial institutions consider a number of variables in the lending process. Credit repayment histories of legal entities serve as an important variable at this point. The CCR also fills an important gap by providing the information needed in the evaluation of the behavior (credit repayment) performance of legal entities. This simplifies the process of monitoring the external behavior of loan customers.

The CCR, which is calculated statistically through the analysis of detailed data contained in the Risk Report, provides the following advantages:

Risk decisions reached by lending institutions can be evaluated more accurately.
A standard can be established in the commercial segment.
Decision-making processes are shortened so customers are able to access loan products in a shorter space of time.

KKB offers its corporate members the “Commercial Credit Rating” model, derived from data modeling carried out on the “Corporate Bureau System”.

COLLECTION SCORES

“Collection Scores” calculate the risk of further delay or default in the near term of a customer delaying a loan payment.

The Collection Scores service, one of KKB’s high value-added products, launched in order to support the data-sharing service it offers to members with analytic scoring models, is used to assess the risk that a customer who has already delayed on a repayment will further delay a payment or default on a loan in the near future. Collection Scores, which are risk scorecards tailored for each customer who delays their payments, allow members to manage their collection processes more effectively by developing a collection strategy for their customers who have delayed on payments. Taking into account all CRS data, members may boost collection efficiency by planning their actions to realize risk segmentation in line with the related overdue periods and may also be able to maintain customer satisfaction except for operational gain.

INCLINATION SCORES

KKB Inclination Scores are used to predict the tendency of individuals to use a new loan product in the future.

KKB Inclination Scores seek to predict the likelihood that individuals will use a new credit product in the future based on their past behavior and their performance with respect to existing credit products. It is aimed at enabling members to manage their risks effectively by reaching customers genuinely in need of loans or customers with sufficient credibility.

KKB Inclination Scores:

Enable KKB members to reach the best prospects rapidly with appropriate strategies,
Allow members to see more comprehensive data via a single score with a lesser operational burden,
Provides more productive, efficient management in making products available.

KKB, which started to calculate trend scores for retail loans in 2015 by modeling the loan and loan application information of the retail portfolio in the data warehouse with statistical methods and calculations, plans to calculate trend scores for all individual products in the future.

GEOMIS - MAP-BASED REPORTING SERVICE

GeoMIS is a location-based data reporting service which allows addresses contained in the data within KKB to be processed and displayed on a map.

GeoMIS, the winner of the “Oracle 2014 Innovator Excellence Award,” is a location-based data reporting service that processes address information contained in KKB data, converts it into geographic coordinates, and positions it on the map. GeoMIS enables the viewing of all types of statistical data on the map by assigning different colors to different categories, which are broken down by town and city.

As well as offering a database, numerical map and reports, GeoMIS can also be effectively used as a decision support system as it visualizes common database processes, such as inquiries and statistical analysis, combining them with geographic analyses provided by the maps. This capability allows GeoMIS to produce much more valuable report outputs, providing an output which boosts productivity and risk models.

The GeoMIS Map based Reporting System can generate the Standard Report, which contains portfolio data of an institution pertaining to a specific period, the Trend Report, which enables the tracking of changes in the portfolio data of an institution within a certain time period, the Benchmark Report, in which portfolio data of an institution can be evaluated against industry data and TURKSTAT (Turkish Statistical Institute) data, as well as selected benchmarking group average data.

The GeoMIS service is provided by KKB through the map-based reporting platform via the Oracle database and application servers. Data positioning on the map is performed using geo-coding.

The system uses the IP address to determine the institution which the user entering the application belongs to, and displays information based on the identified institution.

GeoMIS Personal

In July 2013, the members of the Credit Reference System (CRS) started using the GeoMIS application, which had only been covering the inquiries done by CRS users since the second half of 2009.

In 2014, the data set of the GeoMIS application was further enriched with the addition of personal loan portfolio data. Since then, the application has also offered services in the form of GeoMIS Personal.

GeoMIS Corporate & GeoMIS Cheque

GeoMIS Corporate and GeoMIS Cheque are GeoMIS family products, which brought specially prepared KKB data for small, medium and large enterprises and the commercial segment to the data set in August 2014 and allowed this data to be reported in detail on a provincial and district basis.

The GeoMIS Corporate & Cheque application allows the evaluation of limits, risks, Commercial Credit Rating (CCR), and bad cheque data pertaining to accounts contained in the Corporate Bureau (CB) and displays this data on the map on the basis of cities and even towns. Corporate members are able to view their data, track the changes and development of their data and compare it with the industry and the competition.

Reports generated by the system contain information about outstanding balances, number of accounts, average score, credit risk and bank branch, and the number of firms on credit/bank branches.

As with other GeoMIS applications, the content of GeoMIS Corporate and GeoMIS Cheque is continually undergoing improvements. In its first year, the data set of GeoMIS Corporate was expanded with the addition of information about cheques notified to KKB.

GeoMIS Combined

The newest member of the GeoMIS product family, GeoMIS Combined includes and maps information related to the credit limit/risk reported by banks and financial institutions as well as receivables to be liquidated by using the branch’s province and district address information.

The following information can be viewed on GeoMIS Combined:

The number of records, branches, customers, and customers per branch on Unit Reports;
The level of risk in TRY terms, the level of risk excluding rediscount and accrued interest, the level of risk per customer and the level of risk per branch on Risk Reports;
Limits in TRY terms and limit the ratios on Limit Reports;
Non-performing receivable ratios and delayed credit ratios on Ratio Reports.

LOANS ANALYSIS PORTAL (LAP)

The LAP is an interactive reporting environment which allows comparisons with the “comparison group” and the “sector as a whole”.

The Loans Analysis Portal (LAP) is an interactive reporting system which allows data reporting of any kind of installment loan, overdraft account, or credit card products in the portfolio held by natural persons, their payment performance, and comparisons with the benchmarking group selected in the GeoMIS Personal application and with the sector as a whole.

The primary advantages which the LAP offers to users include:

Showing changes in an institution’s loan portfolio on a monthly basis and over time.
Facilitating strategic decision-making by providing reports and information related to risk management, credit policies, marketing and campaign management and collection practices.
Offering tailored data and content and ease-of-use through the Internet.

Using different parameters and filtering options on the reporting screens, the Portal is capable of producing about 175 million different reports on 2.5 billion lines of data. Thanks to its state-of-the-art infrastructure, the LAP generates reports in an extremely short space of time.

Corporate members of KKB who are also Credit Reference System (CRS) users may perform the following analysis on the LAP:

Analysis of newly opened accounts,
Analysis of the current portfolio, and
Risk analysis.

The Credits Portfolio Analysis Service generates reports using data derived from the monthly notifications of CRS members. The system contains data pertaining to the past 13 months and report results are visually represented in diagrams.

The application enables the following:

Tracking of the current state and development of its own loan portfolio over time;
Comparisons of data related to different portfolios, such as the amount, volume, overdue payments and collections, with competitors;
The ability to use this data to establish and test risk management policies.

KAP (Public Disclosure Platform)’s reporting service was prepared as a separate portal for consumer finance companies. The companies were provided with the opportunity to receive data from KAP on a product basis and under their preferred heading. In addition to the newly opened accounts analysis, current portfolio analysis and risk analysis reports (which they may already receive), consumer finance companies may prepare and use reports in three main products - vehicle loans, mortgage loans and consumer loans.

CHEQUE ANALYSIS PORTAL

The Cheque Analysis Portal is an interactive reporting environment which enables KKB members to compare their cheque numbers with the “benchmarking group” which they will define and the “sector in general”.

The Cheque Analysis Portal is an interactive reporting environment which enables KKB members to compare their cheque numbers with the “benchmarking group” that they will define and the “sector in general.”

Through the reports prepared with the data obtained from the daily cheque notifications of the Cheque Analysis Portal, they may perform the following activities:

Compare the number of cheque customers using cheques for the first time with competing institutions;
Gather information about the ratios and trends of customers who issue bounced cheques in their customer portfolio;
Monitor the rates of the dishonored cheques which are subsequently paid, on a monthly basis with the Vintage analysis;
Measure the ratio of bounced cheques during the presentation, as well as the payment history of cheque customers;
Gather information regarding the up-to-date ratio of bounced cheques and the proportion of the bounced cheques which have been paid;
Compare the ratio of cheque customers who issued a cheque for the first time and who presented a bounced cheque for the first time with the sector in general, as well as with a peer group defined by the institution itself;
Reach the cheque index distribution of the cheque customers.

ADDRESS PROCESSING SERVICE

The Address Processing Service is an application which includes updates of customer address information in the bank and checking newly added addresses, so customers can be correctly identified in the system.

The address formatting infrastructure used in GeoMIS started to be made available as a standalone service in line with the needs of KKB members in 2014.

This application contains checks to update address information such as street names, towns and similar details by geocoding the customer address data with the bank, adding geocoded data to the address data and accurately defining the newly added addresses into the system.

The Address Processing Service provides the following benefits:

With the collective processing of customer addresses, the customer’s existing customer address information in the bank is formatted, allowing changes such as the street name and town in the address and the address to be updated with missing data, and geographic coordinates are added to the address data (geocoding).
The service shares an up-to-date Address Database with Members. In order to ensure accurate data entry of new addresses, Turkey’s address database is uploaded into the member system and integrated with the address entry screens. The coordinate assignment service through KKB is also provided for each address which has been entered. In addition, a reverse geocoding service is also offered to obtain current addresses through coordinates (reverse geocoding) for use in cases such as region or county changes.
The mapping service allows any specific data related to a member to be mapped using a function operated by KKB.

AGRICULTURAL LOAN ASSESSMENT SYSTEM (TARDES)

TARDES provides an infrastructure and information service to financial institutions, enabling them to conduct systematic agricultural loan assessments.

In 2013, KKB launched the Agricultural Loan Assessment System (TARDES), which contains a data sharing, system-ready infrastructure for banks and financial institutions seeking to extend loans to the agricultural industry.

With TARDES, all banks which are members of KKB and able to carry out CRS & CRM notifications and inquiries are provided with a vital infrastructure and information service which allows them to conduct evaluations on accurate and up-to-date data without the need for specialized teams, and where they can carry out systematic agricultural loan assessments.

After an evaluation conducted in 2021, KKB was selected as one of Turkey’s 50 most innovative companies by the Fast Company in recognition of its TARDES service.

TARDES offers KKB members the following benefits:

Reliable, up-to-date, and detailed cost tables created by expert staff;
Simultaneous evaluation of different production and/or cultivation by the same producer;
The ability to extend loans of different maturities depending on the type of production and agricultural products;
Evaluation of agricultural production by taking into account a producer’s non-agricultural income and expenses;
Inclusion of personal information as well as production and income-expense data of other persons or entities which may impact loan repayment in a single application;
The ability to offer a general credit limit taking into account a producer’s agricultural and non-agricultural, commercial, and personal activities and ability to repay;
Preventing the extension of loans which exceed a producer’s need and ability to repay;
Evaluation of short, medium and long-term loans all in one;
Minimal IT and staff investment required by lending institutions;
The automatic data input from the Farmer Registry System included the following;
A flexible lending infrastructure tailored to the needs of financial institutions, enabling them to enter models and parameters into the system in line with their own credit policies;
The capability to send notification emails to users as the maturity date approaches for a product for which a limit has been proposed;
Time savings by blocking applications for products which do not qualify for a loan extension;
Evaluation of a producer’s loan requests for non-agricultural purposes through the personal loan category.

Thanks to this assessment system developed jointly by the Frankfurt School and KKB, cost, income, and maturity calculations have become much more straightforward.

TARDES helps financial institutions save time and labor by providing information compiled and evaluated by a professional, impartial and expert team. It also allows financial institutions to establish a standard, product-based evaluation system internally. As a result, TARDES contributes significantly to the development of the agricultural industry.

FARMER REGISTRY SYSTEM (FRS)

The FRS is a registration system which requires the collection of farmer information in a centralized database.

The Farmer Registry System (FRS) is a registration system which requires all farmers to be registered in a central database in order to monitor, inspect, report and inquire in regard to agricultural support and to ensure that the evaluations are performed soundly and accurately.

The FRS is a combined system of systems in which the personal information of farmers actively engaged in agricultural activities, the assets they use during their activities (such as land, animals and various inputs), their product pattern and their average yields are recorded, along with agricultural supports which have been applied, monitored, inspected, and used in the formation of agricultural policies.

The FRS Inquiry Screens allow KKB members who are not using the TARDES loan module to inquire in regard to FRS data compiled by the General Directorate of Agricultural Reform and which is used to update, inspect, and monitor farmer-related data.

TRADE REGISTRY SHARING SYSTEM (TRSS)

The TRSS is a service that allows banks to track current trade registry information amendments published in the Trade Registry Gazette regarding their customers in a digital environment.

The Trade Registry Sharing System (TRSS) is a service which allows banks to track current commercial registry information changes published in the Trade Registry Gazette regarding their customers in a digital environment.

The TRSS allows users to access amendments published in the Trade Registry Gazette on a daily basis using their preferred method. The application may be used by submitting a single query as well as collective query and proactive notification methods.

The Multiple Inquiry option allows users to retrieve the trade registry information of several customers at any one time. Users may either retrieve information regarding all types of announcements or select announcements in a specific category.

The Proactive Notification service sends members daily notifications regarding selected types of announcements concerning their customers in the Corporate Bureau and newly established firms. The related notification file is sent to the FTP address. Institutions using the proactive notification service are now able to select which daily notifications they wish to receive by entering specified criteria into the system.

VALIDATION SERVICES

The IBAN Validation Service minimizes the risk of negative incidents related to money transfers through the inquiry and confirmation options which it offers.

The Verification Services offered by KKB, which are aimed at bringing about a more reliable financial environment, are a set of services created to alleviate the operational and cost burden of institutions and organizations in the financial world and create a reliable environment for their members while achieving time savings. Verification Services include the IBAN Verification Service and Turkish ID Number and GSM Verification Service.

IBAN VALIDATION SERVICES

The IBAN Validation Service minimizes the risk of negative incidents related to money transfers thanks to the inquiry and confirmation options which it offers.

Fast, secure, and accurate money transfer through financial institutions is becoming increasingly important for customers in today’s fast-paced business world.

The IBAN Verification Service aims to minimize incidents which may occur in money transfers with the query and confirmation options which it offers.

KKB’s IBAN Inquiry feature enables customers to view masked data such as name/surname, company name about the real person or the title of the legal entity connected to the IBAN, thus helping customers avoid incorrect money transfers.

The KKB IBAN Confirmation feature is a verification service which can be used when the account holder’s IBAN and Turkish ID or Tax numbers are known, but the identity verification cannot be performed. Users may check whether the match between the IBAN and Turkish ID or Tax number is correct by submitting an inquiry on KKB.

The KKB’s IBAN Validation Service aims to:

Prevent errors in money transfers,
Cut operational costs,
Reduce time costs,
Provide customers with a secure transaction platform, and
Increase customer satisfaction.

TURKISH ID NUMBER AND GSM VALIDATION

Turkish ID No. and GSM Verification Service is a service aimed at confirming customers digitally in transactions to be performed by banks.

In the financial sector, as in other sectors, work is carried out with the aim of contributing to the sector at a time when digitalization has become important. Thanks to the services prepared for the safe execution of financial transactions, it is possible to confirm telephone numbers shared with members by their customers, if the telephone number has been registered in the banking sector.

With the telephone number given, it is possible to check whether the Turkish ID number has been previously registered in any bank and whether it matches.

Banks seeking to use the application may join the system with Web Service Integration and integrate it into their own systems.

ELECTRONIC LETTER OF GUARANTEE

The Electronic Letter of Guarantee is a platform which allows banks to transfer traditional letters of guarantee issued by banks to electronic media.

The Electronic Letter of Guarantee is a platform which carries traditional letters of guarantee issued by banks to electronic media and enables all transactions which can be carried out throughout the life cycle of the letter to be performed in an electronic environment.

All transactions which can be performed for letters of guarantee created in paper form may also be executed for the Electronic Letter of Guarantee.

The first Electronic Letter of Guarantee was transferred between VakıfBank and Türk Eximbank on 4 October 2018 following the completion of integration studies carried out between the banks and the intermediary institutions which were the party to the project, which was transferred to the production environment on 5 January 2018. All banks are working to complete their integration processes with this important project, which marks a revolutionary step forward in the Turkish banking sector.

Real sector firms which are beneficiaries in an Electronic Letter of Guarantee transaction may follow the status of their letters through Findeks. The status of the letters may be displayed and it is possible to monitor the stages of the processes between the payer and the bank.

The Electronic Letter of Guarantee also offers a wide range of advantages both for the beneficiary and for the payer. The most prominent of these advantages can be listed as faster and safer transactions with minimal operational costs.

All functions in the life cycle of the standard letter of guarantee such as compensation claims, requests for restitution or release, maturity updates, expiry date and status inquiries are also available in the Electronic Letter of Guarantee.

LETTER OF GUARANTEE STATUS INQUIRY (LGSI)

The LGSI is a system where it is possible to check whether or not the addressees of letters of guarantee issued by banks are still valid at the bank.

The Letter of Guarantee Status Inquiry (LGSI) service enables customers who have obtained a letter of guarantee from a bank to check whether the letter of guarantee is still valid for the issuing bank. The service allows for inquires using parameters such as “bank name,” “branch name,” “row number,” “amount,” “currency” and “expiration date.”

Institutions using the LGSI service save time and cut operational costs by being able to instantly inquire the validity of a letter of guarantee without the need to contact the issuing bank.

The system, which allows the validity of a letter of guarantee to be checked instantly, also helps to prevent incidences of attempted fraud.

The system is able to immediately question the validity of a letter of guarantee given to the addressee, with the aim of preventing fraudulent attempts.

KKB member institutions and corporations may use the LGSI service, which mainly targets public entities and institutions which process a large number of letters of guarantee, through web screens especially designed for this application. Users are able to submit online inquiries using banks’ updated letters of guarantee databases, which are integrated into the system.

The LGSI covers all letters of guarantee issued to enterprises based in Turkey. In this “online/real-time” application, data flow to or from banks which issue letters of guarantee is achieved through web-based service integration.

CENTRAL DECISION SUPPORT SYSTEMS (CDSS)

The CDSS enables all decision automation to be carried out over KKB using cloud technology.

Serving as a data-sharing platform since its foundation, KKB now enables the execution of the entire decision automation to be carried out over KKB using cloud technology, through the Central Decision Support Systems (CDSS), which began to be offered to the members in 2014.

The CDSS is a decision automation system used by institutions which deliver all types of decisions including application management, risk and collection, credit monitoring and early warning related to services provided by them to their customers, in a rapid, efficient, and standardized manner. The most significant downside of these systems, despite their many advantages, is that the purchase, installation, and operational costs may be significant.

Delivering this service centrally, KKB aims to provide institutions with fast, low-cost access to these systems.

KKB enhances all information sent by members when decisions are required, before processing the information through the CDSS and then sending the final decision to that member. Accordingly, members may benefit from this state-of-the-art technology which was designed to reduce installation costs and implementation time. CDSS are effectively used by both the real sector and the finance industry. The main advantages of the CDSS, which can be used in a wide range of areas including application management, customer management, limit management and collection management which require continuous updating and optimization of decisions in order to adapt to the ever-changing business environment with successful strategy management, are as follows:

The system requires minimal IT resources, since the technical infrastructure is provided by KKB;
It shortens integration processes to realize projects, thanks to the advantage of using an existing service;
Reduces costs with per-transaction pricing;
Enables business units to reach decisions independently of the IT Department thanks to the new generation Strategy Design Studio software;
Compiles and consolidates KKB data used in CDSS decision-making processes, which draw on KKB’s know-how and technology;
Inquiries all reports received from KKB with the query are carried out within KKB through this system.

PRESCRIBED ACCOUNTS

In this service, information regarding prescribed deposits, participation funds, trusts and receivables are published on a platform accessible to customers.

With this service, information regarding prescribed deposit accounts, participation funds, trusts and accounts receivable are collected from banks which are members of the Banks Association of Türkiye (TBB) and the Participation Banks Association of Türkiye (TKBB), consolidated and published on a common platform (i.e., the website) to provide customers with easy access.

Prescribed Accounts information is published every year in early February and can be accessed by all financial services customers until June.

ALERT SYSTEM FOR FALSE INFORMATION, DOCUMENTS, DECLARATIONS OR APPLICATIONS (SABAS)

SABAS is a system that allows information about malicious attempts to be shared, enabling necessary precautions.

Serving the finance industry for the past 10 years, the Alert System for False Information, Documents, Declarations or Applications (SABAS) enables members to share information regarding malicious attempts to use wrongful information and related risk factors under a defined scheme and to take necessary measures.

Thanks to the information sharing technique and platform, developed by KKB and which SABAS apart from other similar systems used around the world, members are able to share facts, findings, and evidence related to crimes such as forgery, fraudulence, identity theft, money laundering, and the like.

SABAS is structured around five main objectives:

Protecting citizens and customers from risks and victimization by preventing use of their information, documents, possessions and property by others (e.g. identity thieves, money launderers, impostors, swindlers, and the like),
Informing KKB members about actual or potential risks arising from malicious attempts in the face of the initiatives that are the subject of SABAS, in order to protect them against such risks or reduce their loss or damage,
Enabling KKB members to exchange information under standards and rules that are free of “personal comments, opinions or judgments”,
Protecting KKB members from becoming victims of crimes, which may have more destructive consequences than that of the malicious attempts described under SABAS,
Enabling KKB members to minimize their risks, thanks to SABAS, while protecting natural persons and legal entities from becoming victims of such attempts.

INTERNET FRAUD ALERT SYSTEM (IFAS)

The IFAS primarily aims to establish communication between member institutions regarding fraud committed over the internet.

In what has become a very common criminal act, fraudsters obtain information such as the username and password of bank customers at the internet branches and enter the accounts of the customers, before transferring money to their own accounts, which they usually open using counterfeit identity documents. Even though banks use highly advanced security systems to prevent such attempts, criminals continue to develop new methods to bypass these systems.

The Internet Fraud Alert System (IFAS), developed by KKB, primarily aims to establish communication between member institutions regarding incidents of fraud carried out over the Internet. To that end, requests to block an account in the event of money transfer scams can be transmitted through the IFAS. Accordingly, it is possible to establish more effective communication between corporations, while all kinds of information regarding transactions can be stored in the data processing system.

Given the increasingly complex nature of money transfers, an automatic graph-drawing feature was added to the system to facilitate investigations of such incidents. This feature is used to create a flow diagram for each money transfer scam.

Another important feature of IFAS is that it can be integrated and operated in parallel with SABAS. Perpetrators of online fraud generally open deposit accounts using false identification documents to withdraw the money they have transferred from customers’ bank accounts. Data pertaining to such accounts is shared within SABAS so the relevant departments of corporate members are able to access this information. Hence, information which had been previously used for fraudulent purposes and detected by IFAS can never be used again.

APPLICATION FRAUD ATTEMPT DETECTION AND PREVENTION SERVICE

The Application Fraud Attempt Detection and Prevention Service provides a much safer operating environment when compared to checking fraud events on an institutional basis.

The objective is to create a national database of loan application data provided by member institutions and offer protection to the entire industry.

The Application Fraud Attempt Detection and Prevention Service establishes a much safer operational environment when compared to the fraud prevention controls undertaken by each institution on a separate basis. This project aims to minimize losses incurred by financial institutions as a result of application fraud.

The Fraud Attempt Detection and Prevention Service will run as a cloud-based application through KKB, thus allowing for easy system participation at a low cost for financial institutions.

Since the licensing expenses will be shared by all institutions, the service, which provides a great advantage to institutions, is designed to work on shared rules and data, as well as to process exclusive rules and data of institutions.

The new system, which is currently activated especially for lending institutions, is expected to expand and become a national information-sharing platform with the participation of different industries.

LOAN UTILIZATION INSTANT SHARING SERVICE (KAPS)

KAPS is a service provided with the aim of preventing a person from obtaining more than the amount determined by their creditworthiness from banks or financial institutions on any given day.

The Loan Utilization Instant Sharing Service (KAPS) is designed to prevent individuals from obtaining loans from banks and financial institutions in excess of the amount determined by their creditworthiness in any given day, and to identify any related fraud cases.

The service allows an institution to be informed if a customer has obtained any other loans in the 48 hours prior to the time the loan was extended. It allows a ban to be placed on any person receiving loans in excess of their solvency, while preventing a type of fraud commonly perpetrated in the market.

BRSA PRODUCT AND SERVICE FEES PORTAL

Information regarding all kinds of fees, commissions and expenses related to individual products or services is provided through the BRSA Product and Service Fees Portal.

The BRSA Product and Service Fees Portal provides financial consumers with information on any fees, commissions, and expenses charged for retail products and services by banks, other than interest and profit share, in a transparent, legible, and comparable manner.

All fees charged by banks to retail consumers are entered into the system in the same format, and data can be updated simultaneously in case of any changes to such fees. Thus, the portal allows users to review and compare banking product and service fees in a single format, regardless of the varying fees charged by banks.

NOVA

KKB NOVA is a platform that allows data to be collected, grouped, analyzed and interpreted in a systematic manner.

The KKB NOVA platform enables data obtained from scattered channels at different times to be collected systematically according to defined rules, categorized, analyzed to achieve targeted results and interpreted.

The platform has been developed by KKB to establish a dynamic data collection platform and to collect, monitor, process, and analyze related data from a single platform.

The platform aims to collect data dynamically on a single system, in view of the following situations arising in current data collection systems;

Data Duplication
Data Verification
Integration Deficiencies
Lost Data
Dependence on People
IT Dependency
High Costs
Manual Processes

AGRICULTURAL LOAN SCORE

The agricultural loan score measures the risk of default in agricultural loan repayments within 12 months for real persons operating in the agricultural sector.

Agriculture in Turkey is of tremendous importance in meeting the country’s food needs, providing input to the industrial sector, exports and job creation.

Since financial risk management is critical in such an important sector, an analytical model specific to the agricultural sector has been developed for the first time in Turkey, with country-wide sector data, in order to predict the extent that those operating in the agricultural sector will be able to repay the loans they have received or will receive.

The Agricultural Loan Score measures the risk of default in agricultural loan repayments within 12 months for real persons operating in the agricultural sector. It has been developed by statistical methods for the use of the financial sector.

The use of Agriculture Score provides the following benefits;

Enabling member financial institutions to reach objective decisions more quickly in the lending process,
More effective management of the risk of the loan portfolio of financial institutions in the agricultural sector,
Correct pricing according to the risk level predicted as a result of the analytical model for the producers.

KKB CHEQUE SCORE

The KKB Cheque Score measures the risk of the issuer defaulting on the payment of at least one cheque at maturity within 9 months.

The level of risk of cheques with a high leverage ratio for the economy is of critical importance. The “KKB Cheque Score” developed by KKB, which is intended to assist Members with analytical products in managing risk in the most appropriate way with statistical forecasting modeling methods using industry data, measures the risk that the issuer will default on the payment of at least one cheque at maturity within 9 months.

The model, which was developed by analyzing the payment performance of all cheque data as well as other loans, was made available to all financial institutions which are members of the Risk Center in 2019.

The KKB cheque score provided our members with the following benefits;

Allowing Member financial institutions to reach more objective decisions more rapidly in the lending process,
The ability to effectively manage the cheque credit risk of their customers working with cheques,
Improving the quality of cheques in the collateral store.

FRAUD NET

FraudNet is a fraud detection and risk management software package designed to offer protection from online fraud.

Fraud Net is a fraud detection and risk management software package designed to provide protection against online fraud. Launched at the beginning of 2020, the application is currently actively used by three banks.

With its effective rule engine that can be configured by users in terms of risk points and thresholds and its device recognition feature, Fraud Net creates a common device database and anti-fraud platform for applications for Bank, E-Commerce and Telecommunications companies, account openings and all online transactions.

COMMERCIAL INDEBTEDNESS INDEX (CII)

The CII model identifies firms which do not yet have an obvious delay but have a high degree of borrowing tendency, and are likely to fail in the future.

Companies which are experiencing some difficulty paying demonstrate some delays before defaulting. The CII model identifies the firms which do not yet have an obvious delay, but have a high degree of borrowing tendency and are likely to fail in the future. Unlike most risk models which look at the number of days of delay, this model brings a different perspective of riskiness by taking into account borrowing situations which exceed the company’s payment capacity.

The model estimates the tendency of models developed for individual companies and legal entities using machine learning algorithms to fall under high indebtedness that may lead to the subsequent default of the customer by looking at customers’ historical KRM information, both instantly and as a trend.

WEB SKOR

The Web Score model uses information about SMEs to estimate the probability of default with a risk model.

The Web Score model automatically collects and analyzes public internet data and uses this detailed information about SMEs to estimate the probability of default with a risk model. This model can be used to speed up the decision-making process of bank teams and automate the manual assessment of allocation. The Web Score model, which has been developed with Machine Learning algorithms, can be used as a strong analytical forecasting model to support the credit decision when there is limited external intelligence concerning the company, either a weak credit history or no credit history at all, and thus more companies can access credit. Even when sufficient information about the firm is available, the Web Score model can be used to improve the performance of credit risk models.

The Web Score model uses information concerning SMEs to estimate the probability of default with a risk model.