World’s Best Bank in the Emerging Markets

EUROMONEY (2020)

December 2020

Our Digitization Journey

2

Main pillars of designing nextgen banking experience

Digitization Strategy

IT Infrastructure

Information Risk Management Framework

3

Digitization Strategy

4

c

Run the Bank

Risk & return focused growth

Robust capital

Crafting the future

Invest in our people and infrastructure

Leverage digitization & advanced analytics

Best-in-class efficiency

Create superior customer experience

Akbank’s bifocal strategy

Our vision: To be the leading bank that drives Turkey into the future

Design & Innovation Culture

5

Akbanker

Customer

INTEG

RATED TO

UC

H PO

INTS

SMA

RT S

YSTEMS

PROCESSES

SIMPLE + DIG ITAL

ART

IFIC

IAL INTELLIGENC

E

Simple, digital and customer experience focused new operating model

People & Infrastructure

6

‣ New brand attitude, design and language

‣ Intuitive and socialized banking experience

‣ Analytics-driven sales and communication capabilities

‣ Intelligent engagement

Reimagining banking experience with Akbank Mobile

iF Design Best Mobile

Application Design (2020)

A’ Design Best Mobile Technology, Application & Software

Design (2020)

Red Dot Brand & Communication

Design (2020)

Conversation BarHidden Teller Counter

E-teller

Mobile RMs

7

Phygital Branch: Zero-based design creates competitive advantage

8

‣ Mobile-like customer experience

‣ Insight driven design & processes

‣ Analytics-driven sales & native promo areas

Mobile-like ATMs

‣New mobile platform targeting young users, providing core financial services ๏7/24, free P2P transfers interactive with feeds

๏Digital payments and contactless prepaid card

๏Free and easy top-up & withdraw

‣Quick and easy digital onboarding

‣ Social like its target audience – find and follow friends, like, comment, engage

9

Tosla A brand new ‘‘fun & playful, simple & fast, and social’’ mobile platform

10

‣ Digital payment initiatives๏ M-POS, Digital Credit& Debit Card

‣ Strategic partnership initiatives with big techs

๏ DirectPay, contactless payments

‣ Axess Mobile –Credit card loyalty app enhanced by analytics

‣ Integration with wallets, loyalty apps and marketplaces

New generation payment solutions

11

‣ Next phase: Biometric, NFC & Video Call

‣ Easy and intuitive digital experience

‣ Value proposition for digital savvies

‣ 24/7 service

The future of customer onboarding

12

‣ All customers segments

‣ All channels

‣ All products & services

INTELLIGENT SALES ENGINE

MACHINE LEARNING FOR CREDIT RISK

FINANCIAL INSIGHTS FOR CUSTOMERS

‣ Sales Engine powered by Advanced Machine Learning Algorithms

LIVE ACROSS;

‣ Personalized and insight-driven experience

‣ Minimize customers’ stress on their financial decision-making moments

‣ Pioneering Advanced Machine Learning algorithms in credit risk modeling

‣ Enabling more people to become part of the banking system

Akbank & Top FinTech PartnershipNotify Explain More

Detail

Advanced analytical capabilities lie at the heart of our business

‣ Suggest need-based solutions with new “Get-Help” feature

13

Design

‣ Design Studio

‣ Design thinking approach

Innovation

‣ Akbank LAB

๏ Innovation competitions

๏ Hackathons

๏ FinTech/ BigTech partnerships

Differentiating with design and innovation culture

14

Akbank invests in several new initiatives and Center of Excellence teams and programs

NexTalk Code ChallengeEmployee OnboardingCareer Management

People Culture

Center of Excellence Teams and Programs

Design Thinking Advanced Analytics Marketing RoboticsFuture Trends Design

15

A few of new prominent digital features launched during 2020

User-centered Smart Daily Banking

‣ New brand attitude and look & feel

‣ Lean experience, simplified language & new tone of voice

‣ Personalized communication area

‣ Native promo and sales areas

‣ Mobile youth proposition: Akbank FAV

‣ Turkey’s first digital-first credit card

‣ Add & rename “contacts” infrastructure

‣ Lean money transfer experience

‣ Akbank Mobile recognized with 3 key design awards: ๏ iF Design Best Mobile App Design ๏A’Design Award & Competition ๏Red Dot Award in Brand &

Communication Design

‣ AI-based personalized financial insights

‣ AI and need-based smart offers

‣ Campaigns and offers from favorite brands powered w/ AI

‣ Akbank Assistant chatbot: First point of help integrated into mobile

‣ Explore tab with search & help capabilities

‣ Proactive money transfer & payment suggestions

‣ Personalized small talk & info sharings

‣ Ready for upcoming regulations: Digital Onboarding, Single Factor login

One-Stop Shop for Wealth Management

‣ New investment dashboard

‣ Aggregated view of all assets

‣ Total portfolio and asset performance tracking

‣ New and enriched investment product rail

‣ FX platform with customized currency prices

‣ Crypto-currency menu integrated with prominent crypto-platforms

Socialized Banking Experience in Money Transfers & Payments

‣ Mobile payments with QR, NFC, OCR and barcode reading

‣ Nearby money transfers

‣ Money transfers and payments with QR

‣ Money transfers to contacts and groups

‣ Istanbulcard registration and top-up payments

16(1) Based on bank-only MIS data. Increase figures from Dec’19 to Sep’20 (2) Including non-branch channels, year-to-date sales

Enhancing bottom-line impact through digital transformation

Digital banking in numbers (1) with 5.3 mio customers

Interaction Financial Engagement Performance

‣ +21% monthly app login

‣ +15% # of mobile customers conducting financial transactions

‣ +8 pp mobile NPS

‣+62% # of financial transactions through mobile:

๏ +20% payments ๏ +28% money transfers ๏ +96% investment transactions

‣+13 pp share of mobile in financial transactions

๏ +11 pp share in payments ๏ +5 pp share in money transfers ๏ +10 pp share in investment

transactions

‣ ~ 2x digital customer x-sell compared to non-digitals

‣ 60+% credit cards sold through digital channels

‣ 70+% GPLs sold through digital channels

Active mobile customers visiting Akbank Mobile almost everyday

17 Includes Malta branch

2014 2015 2016 2017 2018 2019 9M20

719

771781800

841

902

991

Branch Number Evolution Total Customer Evolution (mn)

-272

2014 2015 2016 2017 2018 2019 9M20

+5.0 mn

13.4

14.4

15.4

16.5

17.4

17.9

Customer Driven Optimization

18.4

18

Commission / Employee (TL.000)

2014 2015 2016 2017 2018 2019 9M20

163

96114

369

220

288

(Loan + Deposit) / Branch (TL mn) Revenue / Branch (TL mn)

(Loan + Deposit) / Employee (TL mn)

2014 2015 2016 2017 2018 2019 9M20

261

188243

770670620

2014 2015 2016 2017 2018 2019 9M20

9.7

6.98.9

32.8

29.0

22.1

Revenue / Employee (TL.000)

2014 2015 2016 2017 2018 2019 9M20

17.3

10.613.4

44.1

34.234.5

2014 2015 2016 2017 2018 2019 9M20

Akbank Peers Average Sector

640

386494

1,878

1,481

1,230

Strong Momentum in all Efficiency Metrics

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Euromoney World's Best Bank

in the Emerging Markets (2020)

Euromoney World’s Best Digital Bank

(2019)

Recognized by key institutions

A’ Design Best Mobile Technology,

Application & Software Design (2020)

Red Dot Brand & Communication

Design (2020)

iF Design Best Mobile

Application Design (2020)

EMEA Finance The Best Bank

of Turkey (2014-2019)

World Finance The Best Bank

of Turkey (2014-2020)

Global Finance The Best Bank

of Turkey (2014-2020)

The Banker Bank of the Year

İn Turkey (2018)

Euromoney The Best Bank

of Turkey (2013-2019)

Euromoney Best Digital Bank in Central

and Eastern Europe (2019)

Brand Finance The Most Valuable

Banking Brand of Turkey (2011-2017)

20

IT Infrastructure

21

Multi-year transformation program to digitize, automate and simplify our infrastructure, organization and services

‣ Brand new Data Center at Akbank Gebze Campus with Uptime Institute

TIER III & LEED v.3 2009 Gold certificates

‣ Increased focus on Automation and Virtualization

‣ Continuous investment in system availability

“State of the art” Infrastructure

‣ Architecture simplification and state of the art reference architecture

‣ Renewal of all channel applications

‣ New capabilities for Digital payments and Innovation

‣ Big focus on Data & Analytics and AI

Applications & Data embracing

the future

‣ First and one of the largest agile transformation in Turkey

‣ Value-driven continuous portfolio management

‣ Best-in-class engineering practices (Devops) for agility and quality

New way of working

‣ Spared capacity for future growth

‣ System usage optimized by 40% without any additional investment

‣ Time-to-market reduced by 30%, significant increase in number of projects delivered

Continuous IT investments for future readiness

22

Information Risk Management Framework

23

Loss or leakage

($ or data)

Theft ($ or data)

Functionality error

Theft directly from bank (Hack)

Theft from customer (Fraud)

System failure

Loss via 3rd party (Ecosystem)

Human error

Environmental disaster

Unavailable system (Hack)

Digital Risk Strategy: Multiple threats in 3 key risk areas

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‣ Information Risk Management Office (IRMO) reports to the Board directly which is an aspirational global best practice

‣ Information Risk Governance Committee is comprised only of executive management

‣ IRMO structure is the governance model for the new Banking regulation (1)

GOVERNANCE

‣ The Cyber Defence Center (24/7 ) is considered globally the most mature in financial services by a major security provider (2)

‣ Optimized fraud monitoring processes result in minimal loss to the Bank

‣ Heavily automated systems’ controls enable timely and effective improvement of operations

‣ Continuous communications with customers and employees regarding possible threats and required actions

PROCESS

‣ 100% of all client facing systems are being monitored

‣ 100% of all security products are up to date with cutting edge technologies

‣ Heavy usage of machine learning technologies across all digital risk areas

‣ Proactive Covid-19 actions for business continuity resulted in immediate remote working adaptation with reinforced

measures for cyber security

TECHNOLOGY

(1) https://www.resmigazete.gov.tr/eskiler/2020/03/20200315-10.htm

(2) In December 2018, Financial Services Industry Only

Digital Risk Mitigation

25

Loss or leakage

($ or data) Theft ($ or data)

Functionality error

Fraud Management

Cyber Enhancement

Ecosystem Risk Management

Data Security & Privacy

Enterprise Resilience

Digital Risk Strategy: Risk aligned program prioritization

26

Disclaimer Statement

The information and opinions contained in this document have been compiled or arrived at by Akbank from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in this document constitute the Company’s judgement as of the date of this document and are subject to change without notice. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents. This document may not be reproduced, distributed or published for any purpose.