Fintech Industry In Turkey On Growth Path With $64M Investment In 2021

turkey fintech

2021 has been a very promising year for financial technology (fintech) companies of Turkey as they managed to attract investments of more than $64 million, according to official figures disclosed by the government.

The attraction of the country as a fintech hub continued to grow through 2021 as the Istanbul Financial Center (IFC) continued to offer attractive propositions to fintech firms.

And the investment inflow into the country’s fintech sector is expected to further develop the industry’s ecosystem in Turkey.

“A strong banking sector and technological infrastructure provide a basis for the increase in the digitalization rate of individual and corporate customers in the financial sector,” said the report, released by the Presidential Finance Office.

Currently, Turkey has almost 70.3 million active retail digital banking users and the banking ecosystem is strong with the presence of more than 1.7 million POS terminals, 52,000 ATMs, 82.8 million credit cards, and 54.4 million prepaid cards, showed the government report.

The Covid-19 pandemic accelerated an already strong trend of contactless payments with a surge of 48% in the incidents of contactless payments in 2021 alone, the report noted.

The report noted at the end of 2021, Turkey’s fintech ecosystem had 520 operational companies, while the total value of exits from the sector was only at $48 million in 2021.

The Istanbul Finance and Technology Base, the country’s first fintech-focused scientific park, is set to open in the IFC, according to the government report.

The report further stated that a regulatory sandbox would be included in the IFC, a place where fintech companies could “develop their products and services in a controlled environment under the regulator’s supervision.”

The government expects continued growth in investments in the sector, driven by progress in the regulatory environment as well as a slowing down of the pandemic in the country and the rest of the world.

The government further mentioned in the report that it was trying to formulate and publish a National Fintech Strategy Document for the country, essentially an action plan for the fintech ecosystem to be implemented between 2022 and 2025. Scheduled to be released in the first quarter of 22, the document will become the guideline for the further development of the country’s fintech sector.

Colendi, a fintech business, raised $30 million in a Series A investment round in September, with $12 million coming from Re-Pie, Turkey’s first alternative asset management organization focused on startups with unicorn potential.

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