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If you are looking to set up a fintech company in Turkey, you must first know what Fintech is. If you know don’t know it already; “what is Fintech?” that’s the question you must first ask. With the development of technology and technology entering our lives; money transfers and other transactions are made much easier thanks to the help of mobile applications. This is a perfect example of Fintech.
Establish a Fintech Company in Turkey
Turkey’s financial industry is well-developed, and many businesses operate in strict conformity with the National Bank of Turkey‘s laws and regulations. Financial institutions are trying to implement many creative solutions in this area to match market expectations in their ongoing hunt for suitable services with the assistance of technology.
To put it another way, the deployment of mobile payments, among other services, would enable Turkish financial institutions to function simultaneously with innovation. A fintech company in Turkey might be an excellent place to start for entrepreneurs looking to make money in a growing industry. Experienced Turkish attorneys can assist individuals in establishing a fintech company in Turkey by providing comprehensive legal support.
Turkey has a well-developed and governed financial sector, which is why large foreign investors are interested in establishing a Fintech business in Turkey. Given that investment funds control a major percentage of the financial industry and trade a variety of financial products, Turkey needs to stay on top of the newest innovations in this area, such as the trade of digital currency. Digital money, often known as cryptocurrency, is a subset of the emerging fintech business in Turkey, which has been regulated since 2014. Fintech is a rapidly growing business that combines the financial and innovation sectors all around the world.
If there were 200 Turkish fintech businesses in 2014, when the legislation allowing them to establish was passed, the number has exploded. During the same period, the fintech market grew by 175 percent in Turkey, with investments in the industry totaling 29 million USD. Turkish startups attracted a substantial portion of these funds.
Requirements to Open a Fintech Company in Turkey
A minimum capital requirement exists for an investor to establish a fintech business in Turkey that may provide assistance and apps connected to electronic payments. Whether a local or international entrepreneur is interested in starting a fintech company in Turkey, the Banking Regulations and Supervision Agency in Turkey oversees their operations. It’s important to note that minimum share capital is required to start a company that provides electronic payment solutions.
Investors who wish to start a fintech business in Turkey must follow the Banking Regulation and Supervision Agency’s special law, which allows for the use of electronic financial services. The same regulation establishes the minimum share capital required for a Turkish fintech firm to begin operations. In Turkey, there are three types of fintech companies:
- Payment and e-payment companies require a minimum share capital of $230,000.
- Companies issuing e-money require a capital of $600,000.
- Companies providing electronic bill payment systems and which need a minimum capital of $115,000.
What to Think About When Starting a Fintech company in Turkey
As predicted, technology had a significant impact on Turkey’s financial industry, with most firms focusing on the most effective methods to improve financial services through innovation. Technology, which is always evolving, enables individuals to connect quickly to a variety of services, including financial institutions, among many others. If you wish to start a fintech business in Turkey, you’ll need to devote 100% of your attention to it, since this new industry necessitates qualified people and innovative ideas to execute in the financial sector.
In terms of security, a fintech business must be aware of the data breaches and cybercrimes that occur in such a vital industry, necessitating a thorough investigation. Customers must be safeguarded when utilizing various bank services; consequently, when starting a fintech company in Turkey, one should consider creating many protective techniques. A fintech firm should also provide innovative and dependable services, as well as comprehensive solutions for payment, insurance, and investment services that a financial institution provides to its customers.