There are many ways in which banks can demonstrate their commitment to social responsibility and some come amid the most challenging times. The devastating earthquake in southern Turkey at the beginning of last year triggered an immediate response in support for the affected communities from the country’s corporate and banking sectors.
Isbank, among other banks, responded swiftly, donating TL1 billion ($30.5 million) to Turkey’s Disaster and Emergency Management Presidency for the impacted region and providing TL1.75 billion to support rebuilding.
The bank also allocated TL10 billion in the first phase of its disaster aid package to help support economic production and employment, and deferred or wrote-off loan payments from customers in the provinces and districts most severely impacted.
Providing much needed financial assistance after such a traumatic event is important and for Hakan Aran, Isbank’s chief executive, it reflected the bank’s desire to “shoulder our responsibility”.
This sentiment is something the bank takes seriously across many areas, ranging from education, culture and art to financial inclusion, female empowerment, diversity and gender equality, climate action and sustainability.
“Our focus is on society and leaving a positive impact on the future, not just on financial results,” says Suat Sözen, deputy chief executive at the bank.
In all these areas, the bank has not just extended support but also achieved some big developments. These include committing TL100 billion over the next five years to finance women entrepreneurs and financial literacy training; and issuing the Turkish banking sector’s first local-currency denominated green bond to help fund green projects.
Under its commitment to women’s empowerment in business, Isbank had provided about TL35 billion in loans by the end of last year to 3,500 women entrepreneurs running businesses of different sizes throughout Turkey. The initiative is in partnership with the Arya Women Investment Platform, and in collaboration with the Turkish Enterprise and Business Confederation and the UN’s Gender Equality and Women’s Empowerment Unit.
Isbank’s TL500 million two-year green bond last December also helped deepen and develop the local green bond market
This is just one example of the bank’s commitment in the past few years, which has also included its asset management arm launching the country’s first equity fund, the Is Portfolio İş’te Women’s Equity Fund, dedicated to investing directly in companies that focus on creating equal opportunities for women in the workforce.
Isbank’s TL500 million two-year green bond last December also helped deepen and develop the local green bond market, which is critical to support the Turkish economy’s energy transition. The bank allocated $6.8 billion to fund renewable energy projects and has committed to provide TL300 billion of sustainable financing to the economy by 2026.
The provision of finance is naturally where banks can have the most immediate and material impact on society, but their investment in financial inclusion is just as important.
Isbank is tackling this issue with a series of initiatives. One is the bank’s digital project, Nays, which is a free banking app designed to provide person-to-person transfer, micro credit, payment, foreign exchange trading and contactless payment capabilities to customers. At the end of last year, the app had over 2.9 million users, with 1.8 million being non-Isbank customers.
