“Türkiye Fintech Outlook Study” prepared under the coordination of Finance Office of Presidency of the Republic of Türkiye has been published.
With the “Türkiye Fintech Outlook Study”, data on the fintech ecosystem will be kept up-to-date.
In fintechs, which continues to develop the financial sector with innovative business models, as well as established financial institutions such as banking and insurance, the data on the ecosystem differs and increases. Aiming to create an up-to-date and categorized data set, this study will provide local and foreign entrepreneurs and investors with up-to-date and accurate data on Türkiye's fintech outlook.
As the Finance Office of Presidency of the Republic of Türkiye, we plan to update the "Türkiye Fintech Outlook Study", which we prepared together with Startups.watch, showing the current status of the sector and its development compared to previous years, and share it with the financial technology ecosystem. The study will be published on the official website of Finance Office, cbfo.gov.tr.
Fintech sector received a share of $91 billion from global investments in 2021.
The concept of 'fintech', which has been used in Türkiye since 2001 and is one of the rising values of the finance field in recent years, defines businesses that provide financial products and services created by utilizing digital technologies and the sector consisting of these businesses. Fintech sector increased 82% compared to the same period of the previous year and received a share of $91 billion from global investments in 2021.
Türkiye has a great potential in the field of fintech.
Positioning Türkiye to be among the world’s leading countries in fintech is one of the primary objectives of Finance Office of Presidency of the Republic of Türkiye. Thanks to its technological competence and solid experience in the finance sector, Türkiye has great potential in the field of financial technology. It is expected that the investments made in the fintech sector, which is one of the main focuses of the İstanbul Financial Center, will increase even more and it is aimed to bring innovative business models to our country and export them.
The number of fintechs established in Türkiye has reached 589, and the number of fintechs that continue to operate has reached 505 as of November. In 2021, 27 new financial technology companies started operations.
The regulations are mostly completed.
Fintech companies in the sector operate in a total of 12 areas, primarily payments, blockchain, banking, insurance and corporate finance. The payments area is particularly prominent in the fintech sector. In the field of payments in the sector, the number of operating fintechs are increasing day by day and the number is 212 as of today. 56 of them are payment and electronic money institutions operating under license under Law No. 6493. One of the important reasons why investments made in the field of payments are at the forefront is that the regulations made by the Banking Regulation and Supervision Agency and the Central Bank of the Republic of Turkey have been completed mostly in recent years.
Despite the declining global investment appetite with the pandemic, investments in the fintech sector in Türkiye continue to increase. As of this year, the amount of investments made in 24 fintech companies has reached $44.6 million. However, in 2020, 5 fintech companies in our country were sold for a total of $95.6 million and completed their merger and acquisition processes.