Are we there?
Turkey is a vibrant country, which has attracted in recent past investor’s appetite and interest by its emerging economy, tech-savy young population and geographic location.
The banking system in Turkey has been strong and innovative, ahead of its European peers. Top tier banks paved the way for digital banking, costumer friendly services and products launched with mobile first approach for many years ago, considered as pioneering examples and successful case studies globally.
Innovative financial products like payments systems, remittance, credit usage are quickly adapted among the population, the interest in technology is rapidly spreading across the regions from West to East.
%43 of the Turkish population is unbanked, the ratio reaches %56 among the Turkish women.
E-commerce growth rate has been observed at %40 for the last few years, one of the highest values globally.
Turkey has many favourable parameters for Fintechs to pop up, flourish and thrive. Why don’t we see their flowers yet?
At the end of 2016, Fintech startups received 28,5 million USD investment over a year, cumulating the total capital flow to 55 million USD, which is less than 0,05% of the total Fintech investment worldwide. Given Turkey’s GDP and its role in the world economy (Turkey's GDP is 1% of World’s GDP approximately), this amount stays way below its potential.
Fintech needs an ecosystem to pop up and flourish. The ecosystem’s main building blocks are the Fintechs, the financial institutions, the regulatory bodies, the academia and the consumers.
The ecosystem does not seem to have a full pattern established yet.
A cohesive work with common goals and actions is key. There is a win-win situation for everyone, but seems not to be felt strongly among the main players.
If the ecosystem is not activated and functioning, it is because one of several players are consciously or unconsciously not collaborating for the win-win situation. Either they believe they will win by themselves, or they will help another to win.
Globally speaking, nothing will be the same as before for the financial institutions, there is no turning back and the future is yet to build. The banks, the regulatory entities and politicians cannot deny the power of technology, customer needs and their growing awareness against the agility, dynamism and motivation of Fintechs thriving to make a change.
Not to forget that Turkey needs a win-win in every aspect of life to prosper, sustain its economic growth and social evolution.
So it is time now to work hard, we have to take a big step forward and shift the gear.
