
Türkiye’s banking and financial ecosystem is far more sophisticated than it is often credited for, says Ozan Ozerk, founder of OpenPayd and European Merchant Bank
Despite facing certain challenges, Türkiye’s banking and fintech sector continues to rise as a global powerhouse, supported by a highly advanced financial infrastructure that rivals some of the world’s most developed economies, according to a prominent entrepreneur.
Türkiye’s banking and financial sector is a “sleeping giant” that is far more sophisticated than it is often credited for, Ozan Ozerk, founder of OpenPayd – a leading global payments and banking-as-a-service platform – and European Merchant Bank said in an interview with Anadolu.
“People living in Türkiye, as well as those in major financial centers like London, Singapore, and the US, may not fully realize how advanced Türkiye’s banking system is,” he said.
“In terms of financial infrastructure, Türkiye is on par with Japan and South Korea.No European country has a financial infrastructure as advanced as Türkiye’s.”
According to reports by global financial institutions, Türkiye remains a high-middle-income nation with strong growth potential, bolstered by its large population and strategic geographical location.
Istanbul, in particular, is undergoing a transformation aimed at strengthening its position as a global financial hub. Large-scale projects such as the Istanbul Financial Center (IFC) are designed to position the city as a key player in the global finance arena.
Türkiye has also made significant progress in financial inclusion. The country now has more than 100 million credit cards in circulation, ranking ninth globally for credit card transactions and seventh for credit card ownership, according to data from Statista.
Additionally, Türkiye boasts over 90 million active online banking customers and more than 2 million point-of-sale (POS) devices, a significant portion of which support contactless payments.
Role of fintech and e-money institutions
While Türkiye’s traditional banks are well-established and play a crucial role in the financial ecosystem, Ozerk pointed out that they are not able to effectively compete in every sector, creating opportunities for fintech companies and e-money institutions to fill the gaps.
Over past years, Türkiye’s fintech industry has emerged as a global leader in innovation, leveraging cutting-edge technology to offer new financial solutions.
“Fintech and e-money institutions serve customer segments that banks avoid due to risk concerns, such as refugees or high-risk industries,” he explained.
However, Ozerk also noted that when banks own e-money institutions, it raises concerns about fair competition, “as it blurs the lines between banking and fintech regulation.”
‘Potential to be a major global player ’
According to Ozerk, Turkish fintech companies are often more technologically advanced than their European and American counterparts, but their international expansion strategies remain flawed.
“Despite having superior technology and expertise, many Turkish fintech companies fail to adopt the right strategies when expanding into international markets,” he said.
“They often enter foreign markets without securing sufficient investment or hiring the right talent, making it difficult to compete globally.”
Although Türkiye’s financial sector has shown remarkable progress, Ozerk pointed out that regulatory and legal gaps still pose challenges for further growth.
“Some financial regulations in Türkiye are either incomplete or outdated,” he noted. “For example, the cryptocurrency market remained unregulated for a long time.”
Despite these hurdles, Türkiye remains one of the world’s most promising fintech markets, with a robust digital financial infrastructure, he added.
However, Ozerk stressed that for the sector to succeed on a global scale, Turkish companies must prioritize stronger investment strategies, better talent acquisition, and well-planned international expansion efforts.
“Türkiye has the potential to be a major global player in banking and fintech,” he stated.
“However, to fully realize this potential, companies must secure more investment, invest in skilled human capital, and implement well-planned strategies for international expansion.”
Source: aa