Question

What Are Strategically Relevant Components of 'YAPI KREDİ BANK' in  the Macro-Environment?

(note:YapıKredi is a bank that facilitates in Turkey)

Answer 1

Yap Kredi Bank is one of the commercial bank in Turkey. It was established in the year 1944. The ownership of the bank is a joint venture which is held by Koc Holding and Uni Credit. The bank was established by Kochman Azerbaijan Ltd. It started with amount of 5 million provisioned under National Bank of Azerbaijan. Its head office is situated at Baku, Azerbaijan. Today it is the fourth largest bank in turkey. It is a customer focused bank and it has a divisionalized service model . the service model is divided into three: Retail banking, Private Banking and Corporate banking. This bank also makes to it that it follows or make changes according to changing priorities. There are various financial products available with this bank like credit card, loans, savings account, flexible accounts etc. In the year 2101, it has also done a brand expansion. It also focuses on revenue growth, cost discipline and efficiency efforts,emphaisis on innovation and new product launchs etc. Throughout these years it has placed a strong and sustainable financial performance.

What is macro environment ?

Macro environment is the overall covergae of any entity. For example : economy - macro economy means overall condition of an economy at a national or world wide level.

Macro Environment Components of Banking

a) Demographic factors : It is one of the factor that affects the banking industry. Now, demography refers to the location or the place where bank exists. for example : People in rural areas might use less banking facilities or say traditional banking facilities like withdrawal, cheque, passbook punching etc. whereas in urban areas there are much more facilities like net banking, trading facilities via bank etc.

b) Experience or age in banking insudtry : Age factor is another factor affecting banking industry. The banks wwith more age or say working experience are preferred mostly than new or emerging bank. It takes time to gain the trust of people.

c) Technological factors : This is another factor which affects the banking sector. Banks has to also be updated with technology with timely changes that occur periodically specially during modern ages , people prefer banking at one click than those tiring visit to banks.

d) Customers : This is one of the key factor for existence of any bank. Customers satisfaction plays a great role in macro environment.

e) Economic factors: Economic factors also play a great role in banking. the economic conditions affects a banking industry like any other industry. for example :repo rates is  a result of economic condition inflation. When there is a high inflation in economy , the regulatory body increases reverese repo which helps in reserving  more funds and as a result helps in getting more retuens on excess funds or reserved funds.

f) Regulations on banking Industry: The regulations of the country plays a role or is a factor affecting the banking industry. With rigid regulations, banks dont get a flexible environment to place a good performance.

g) Political Factors : This is another one factor affecting banking industry in macro environment.

h) Urbanization : Next factor affecting banking industry is urbanization, with the shift of people to cities , banking services also needs to be more operational in urban areas and also needs to add the technological essence to retain customers as well gain customers.