Itır Aydoğan, from the Ecosystem Banking division at Yapı Kredi, shared the following insights regarding regulations and developments in open banking:
As you know, open banking was launched in Türkiye at the beginning of 2023. BKM (Interbank Card Center) has been one of our greatest supporters in this journey. We continue to foster innovation, bolstered by the existing regulatory framework. As I mentioned, progress in this area will continue to build day by day. It is clear that customer adoption in Türkiye is significantly stronger compared to Europe. A key driver of this is the regulatory environment, which is both transparent and supportive. Rather than simply adhering to regulations, we focus on understanding our customers’ needs and habits to determine how we can introduce new products and offer diverse services. To give an example: in the context of open banking, we observe that—unlike in Europe—customers in Türkiye frequently use multiple banks, often utilizing various cards and products in parallel. With the advent of open banking, we introduced a “fund transfer from another bank” feature. This allows customers to move deposits or e-money held at another institution into their account at our bank—or another bank—to facilitate payments. For instance, you can use this feature to transfer funds from an account at “Bank X” to pay off your Yapı Kredi credit card balance. Ultimately, our focus in open banking is to further strengthen payment systems and explore ways to provide customers with more convenient, accessible solutions. There is still a lot of room for growth here, because, as I mentioned, we have only just begun with open banking; currently, only account-related products have been integrated. Over time, other types of products—such as investments, cards, and so on—will also be added.
Open Banking: A New Era in Türkiye
Launched in Türkiye at the beginning of 2023, open banking represents a revolutionary innovation in financial services. This new system aims to provide customers with a broader and more flexible range of services by enhancing data sharing and collaboration between banks. Key factors driving the rapid adoption of open banking in Türkiye include the supportive role of regulations and the openness of customers to innovation. Compared to Europe, the adaptation process among Turkish customers has been observed to progress at a faster pace. In this article, we will examine the development of open banking in Türkiye, the opportunities it presents, and its future potential.
Core Principles of Open Banking
Open banking is a system that enables data sharing between banks. Through this system, customers can manage their account information from various banks via a single platform. This makes financial services more personalized and customer-centric. Organizations such as the Interbank Card Center (BKM) play a significant role in the implementation of this system in Türkiye.
The Emergence of Open Banking in Türkiye
Open banking was officially implemented in Türkiye at the start of 2023. During this process, a supportive regulatory framework and policies that encourage innovation contributed to the system’s rapid adoption. Turkish banks are strengthening their technological infrastructure and developing solutions tailored to customer needs to align with this new system.
Customer Adaptation and Behavior
Turkish customers have adapted to the open banking system quite rapidly. Compared to customers in Europe, users in Türkiye actively utilize multiple banks and evaluate various financial products in parallel. This presents a significant opportunity for banks to diversify and personalize the services they offer to their customers.
Innovative Services in Open Banking
One of the innovative services offered within the scope of open banking in Türkiye is the functionality to bring funds in from another bank. Through this service, customers can easily transfer deposits or e-money held at different banks and make card payments. Such innovations provide customers with greater flexibility and convenience.
The Future of Open Banking
The future of open banking in Türkiye appears very promising. While currently only accounts and certain basic products are integrated, it is expected that investments, cards, and other financial products will also be incorporated into the system in the future. These developments will expand the scope of services that banks provide to their customers and render the financial ecosystem more dynamic.
Conclusion
Open banking in Türkiye marks the beginning of a new era in financial services. A supportive regulatory framework, combined with the openness of customers toward innovation, has facilitated the rapid adoption of this system. By enhancing data sharing between banks, open banking offers customers a broader and more flexible range of services. The system is expected to continue evolving and diversifying. In this new era, banks in Türkiye can gain a competitive advantage by offering their customers more personalized and innovative services.
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