In recent years, Turkey has made significant progress in the fintech (financial technology) sector and is rapidly advancing towards becoming a regional hub in this field. The growth of the fintech ecosystem is supported by both local and international investments. As of 2023, the fintech ecosystem in Turkey continues to grow in various areas, including digital banking, open banking, banking-as-a-service, and digital currency.
Fintech Investments and Growth
Fintech investments in Turkey have seen a significant increase in recent years. In 2022, investments in the fintech ecosystem surpassed a record high of $90 million. These investments have enabled the growth of the fintech sector and the emergence of new startups. In 2023, a total of $17 million was invested in 29 fintech companies, and 5 fintech companies achieved exits worth $86 million. The number of active fintech startups in Turkey has reached 803, with 677 of them operating actively.
Key Components of the Ecosystem
Turkey’s fintech ecosystem operates across various sectors, including payment systems, digital banking, open banking, and blockchain technologies. Payment services have been the most prominent area within the fintech ecosystem, but in recent years, new sectors such as digital banking and banking-as-a-service have also shown significant growth. Turkey ranks high globally in terms of credit card ownership and digital banking usage, contributing to the growth of the fintech sector.
Regulation and Support
To support the growth of the fintech sector, various regulations and incentives have been introduced in Turkey. The Banking Regulation and Supervision Agency (BDDK) implemented the “Digital Banking and Banking-as-a-Service” regulation in 2022, which grants digital banks establishment licenses. Additionally, the Central Bank of the Republic of Turkey, in cooperation with the Interbank Card Center, has developed the “Open Banking Gateway” (GEÇİT) infrastructure to support open banking transactions. These regulations further strengthen the fintech ecosystem.
Fintech Future Outlook
Turkey’s fintech ecosystem continues to grow, driven by the rapid adoption of technological innovations and the support of regulatory bodies. With the opening of the Istanbul Finance Center, the fintech sector is expected to gain even more momentum. Developments in digital banking, open banking, and digital currency have the potential to position Turkey as a regional financial technology center.
The fintech ecosystem in Turkey is growing and developing rapidly. This growth is supported by increasing investments, stronger regulatory support, and the swift adoption of technological innovations. Turkey is taking significant steps toward becoming a regional leader in the fintech space.