Digital Transformation In Participation Banks

MAGAZINE 01.02.2022, 12:56
Digital Transformation In Participation Banks

Digitisation efforts worldwide have gained momentum in all sectors during the last two years with the pandemic, including the banking and finance sector in terms of customer expectations and needs. The world has experienced that many jobs that can be done with traditional channels can be digitized, and with this digitalisation productivity can increase. Of course, the banking sector has taken its place among the sectors where we see many innovative products and services that bring together needs and new generation technologies.

Our participation banks in Turkey are involved in this transformation and have accelerated their investments in digitalisation. The fact that all of our participation banks have quickly taken part in remote customer acquisition, their success rates are higher than the sector rates, and that they invest in many innovative and creative products and services are the indicators that they consider their digital channels as the most active tool while increasing their market share in the banking sector.

As TKBB, we have prepared a comprehensive Digital Research Report with Ernst & Young that will contribute to the digitalisation goal that we set in our Strategy Document and which our banks can benefit from in their digitalisation efforts. With the report in which detailed global analyses and interviews were assembled, we offered digital initiatives along with the required and expected actions. In the upcoming period, as TKBB, we will continue to observe the outcomes in this area, and we plan to accelerate our efforts to revitalise the ecosystem related to fintechs. Increasing cooperation with Fintechs, constructing more efficient business models, offering dynamic, personalised and more technological products and services for customer needs will undoubtedly contribute to developing the participation finance ecosystem. Another critical issue that will directly contribute to the growth of the sector's market share will be establishing a digital participation bank. In 2022, we expect digital banks to be implemented in both conventional and participation banking sectors in Turkey and the sector's market share to grow.

The main strategies of the digital banks included in the sector will be to focus on competitively gaining new customers with a fast and efficient service approach, as in the examples around the world, and to take place in the market share in the sector. It is evident that customer perceptions and preferences will change with the products and services offered through fast, simple, high quality and transparent processes. Within the expected developments, it will be beneficial to increase the number of players in the market to spread participation banking to a broader area and accelerate the sector's growth, especially for the retail and SME customer segments.

Acting Secretary General of TKBB - İsmail Vural

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