Participation Banks and Digital Development

60-70 years ago, when a French philosopher drew a frame about video calls and our day in a cartoon, perhaps the people around him/her believed that this was impossible. In this age, if you ask people what we will witness in the near future, they will tell you about developments such as flying cars and teleportation that have been the subject of many movies or cartoons. But how much do we believe that these will come true?

Digitalization in banking

As in many fields, digitalization has stepped up the gear in the banking field in recent years and showed significant developments. By adapting to these developments, the BRSA recently published the "Draft Regulation on the Operating Principles of Digital Banks and Service Model Banking". The purpose and scope of the draft are as follows:

"The purpose of this Regulation is to determine the operating principles of branchless banks that serve only through digital channels and the conditions for offering banking services as a service model to demanding businesses and innovative enterprises in order to encourage financial innovation in the banking sector, increase financial inclusion, and facilitate access to banking services."

In fact, today, many banks offer API (Application Programming Interface) Banking and prepare digital solutions together with fintech formations as an important development.

It seems that the developments brought by technology in financial development will lead to the developments such as faster digitalization and innovative services in the banking field in the upcoming days. 

Through the call conveyed to all financial institutions and banks under the responsibility of the Presidency of the Republic of Turkey Finance Office, the works for the creation of a "National FinTech Strategy Document" in line with the 11th Development Plan and 2021 Economic Reforms have been started. As a result of this program aiming to address the studies to be done in this field with holistic and inclusive planning in order to reveal and evaluate the country's potential in the context of the roadmap for the development of the fintech ecosystem in our country, it is expected that digital development will accelerate further and a model will be developed that will involve all financial actors. 

Expectations for Participation Banks

A rapid transformation process continues within the scope of digitalization efforts within the participation finance system. These organizations, which have to reap the rewards of their technology investments in recent years, offer important initiatives for the fintech world, especially through their innovative approach. 

In the upcoming period, banks and companies that will enable many innovations and developments in this field and keep up with the change will certainly maintain their activities by making positive gains from this situation. The experience of participation banks in this field in recent years is very valuable. The digitalization that emerged with fintech collaborations will also enable the creation of a more alternative model through the actions taken in the public sphere. In this context, fintech development/support coordination programs established by participation banks will accelerate innovative solutions and developments in digitalization.

Salih ERBAŞ