Today, the term FinTech defines the financial products and services created by capitalizing on modern digital technologies, as well as the businesses that provide these products and the global sector that consists of these businesses.
FinTech encompasses all of the innovative technologies and business models developed by FinTech companies to improve the access and use of financial services to consumers. These innovative technologies are generally used to reduce product and service costs, to reach the sub-markets that are not economically feasible before the digitization process and / or to make new products significant in terms of economy with the possibilities of technology.
FinTech offers the potential to create major changes in a variety of areas such as asset management, corporate and consumer loans, funding, money transfers and investment instruments, as well as providing the opportunity to open complex financial transactions and hierarchical fund management models to the masses by simplifying the presentation of advanced financial transactions and services that require expertise and knowledge.
The term FinTech first emerged as a term about the digitalization of the internal systems of existing financial institutions, in the 21st century. But since then, the more consumer-oriented services, and consequently a more consumer-oriented definition has been adopted. Currently, it includes various sub-sectors such as financial literacy, retail banking, funding and non-profit organizations, investment management.
Among the important FinTech verticals, the following areas stand out:
- interpersonal lending (P2P Lending)
- Payments (Digital payments, e-money companies, cross-border payments)
- Personal finance management
- BlockChain and CryptoCurrency
- Micro Insurance
- Digital Banking
- Financial API Economy
- Money Markets oriented FinTech models (Robo Advisor etc.)
- RegTech (Models digitizing regulations)
In new areas such as “Data Oriented Marketing”, it is tried to be turned into automatic behaviors by learning financial decisions thanks to machine learning and artificial intelligence. “Learning” applications not only learn about users' financial decisions, but also automatically include their daily spending and habits into its learning process. Therefore, the FinTech sector is also an area of integration and joint development for other emerging digitalization sectors.
Finance Office of Presidency of the Republic of Turkey considers making Turkey to be one of the most important and prominent country in the field of Fintech as one of the most important goal of the Office.
Developments in the field of FinTech helps sustaining country's financial stability, security and presents tolls that can be used directly or indirectly in a wide range of fields such as creation of new economic resources and utilization of those resources, seizing opportunities in the field of global finance and technology, eliminating the income inequality and increasing the economic literacy. Finance Office, in full awareness of these valuable contributions, works with all related agencies and institutions in coordination.