Although, technology has been using in the financial world for a long time, the importance of financial technologies (Fintech) has increased more with digitalization in recent years. Developing effects of this trend is observed both in Turkey and in the world very intensive. It is possible to say that the most important factors that make financial technologies popular are technological developments, changing customer demands and macroeconomic effects. The number of new initiatives with the support of the powerful banking infrastructure investment realized in Turkey fintech and investors are increasing rapidly with each day. In this context, to determine the importance and potential of fintech investments in Turkey, the Government are taking the necessary steps in order to disseminate investments to the public. You will read some details about fintech investments in Turkey in this text.
What is the concept of Fintech ?
As a general definition, Fintech is the combination of finance and technology to provide better, faster and easier financial services. On the other hand, with the help of technology, making financial services is possible more user-friendly, providing consumers access to financial services in new ways. Consumers now expect to receive fun, fast and user-friendly financial services that are easily accessible from anywhere. All work on the fintech areas in Turkey, together with the entire world in order to meet these expectations and compete every day accentuated the context, especially in 2016 of that year that starts developing of fintech investment.
Potential of Turkey for Fintech Investments
Turkey has a high-potential with young population, qualified workfoce and geopolitical position on the fintech investment field. Together with these advantages, Turkey has made strides to further move by fintech initiatives for the ideal environment offering will become one of the countries attracting more attention of investors in last years, will become an ecosystem is the global brand fintech companies are believed by independent authorities. The increasing availability of card payment systems in all areas and the intensive use of mobile technologies by consumers provide significant opportunities for fintech investments. This situation proves that you will have an important position in Turkey’s for long-term investment.
Fintech investments in Turkey increasing day by day and participate in investment from foreign and domestic sources. Global fintech investments have reached a new record last year with a 137.5 USD billion transaction. The 94 fintech initiatives in Turkey, showing 66% growth success has invested 102 million USD in 2019. In this case, it took the rise of fintech investments in Turkey and there are many vertical markets will continue to drive göstermektedir.finansal technology can create value in the area. So fintech investors can evaluate these areas.
Advantages of Fintech Investments
Despite the rapid growth and development, financial technology field is relatively new in Turkey. Thus, it is a fact that the fintech sector is not very big yet. However, in countries where the sector has not fully developed yet, the growth potential is particularly high. Along with the developing economy, opportunities for growth and innovation are increasing in fintech investments. Turkey according to the performance of the overall index, but not in general in the first place in the world in terms of growth and innovation investment is located in a fintech so in the future.
The dynamic work force and young population of Turkey play an important role on the development of fintech sector at the last years. However, the strong financial market in Turkey is quite effective on lively and fast-growing fintech works of investment.
Fintech Investment Fields That Attracting Interest in Turkey
Turkey attracts the interest of investors with payment, mobile banking, asset management, capital markets areas of digital currency. In addition, there are fintech initiatives operating in areas such as prepaid cards, wallet applications, payment tracking, offline payment, money transfer, budget management, collection, POS management, pre-accounting, VPOS, cash register, banking software. In the future, it is expected that fintech initiatives, which provide services especially in the field of cyber security, will gain importance. In addition, Blockchain technology, which will concern many segments of the financial services area, is among the areas that will be on the rise.