Economic Confidence Index is a very important tool to evaluate the economic situation of a country. This index is a composite index that reflects the perceptions, expectations and tendencies of consumers and producers towards the general economic situation.

Producers’ confidence in the economy and their production plans are also part of the economic confidence index. The business confidence index includes data on future investment and employment plans of businesses. This index reflects the economic growth and development expectations of businesses and is usually measured through production indices and business surveys.

Consumers’ confidence in the economy and their spending propensity are often measured by the consumer confidence index. Consumer confidence is an indicator that reflects consumers’ assessments of their future economic situation. For example, consumers’ employment and income prospects are measured through the consumer confidence index and are considered an indicator of economic confidence.

The economic confidence index also includes macroeconomic factors such as the unemployment rate and inflation.

How to Calculate Economic Confidence Index?

Every month, the Economic Confidence Index is calculated by the Turkish Statistical Institute (TUIK) to measure the general economic situation, expectations and trends of consumers and producers. Calculating the Economic Confidence Index requires a very detailed process. This index is created by combining various economic indicators.

This index is calculated as the weighted average of sub-indices belonging to five main sectors.

The five basic sectors and their weights are as follows:

• Consumer: 20%
• Real Sector (Manufacturing Industry): 40%
• Service: 30%
• Retail Trade: 5%
• Construction: 5%

Sub-indices and related expectations are:

Consumer Confidence Index

• Change in the financial situation of the household in the next 12 months
• Change in the general economic situation in the next 12 months
• Change in the unemployment rate in the country in the next 12 months
• Change in the possibility of saving in the next 12 months

Real Sector (Manufacturing Industry) Confidence Index:

• Change in production volume in the next 3 months
• Change in the number of people employed in the business in the next 3 months
• Change in stock level in the next 3 months

Service Sector Confidence Index:

• Change in service sector activities in the next 3 months
• Change in the number of people employed in the service sector in the next 3 months

Retail Trade Sector Confidence Index:

• Change in retail trade sales in the next 3 months
• Change in stock level in the next 3 months

Construction Sector Confidence Index:

• Change in new construction orders in the next 3 months
• Change in construction activities in the next 3 months

Economic Confidence Index Calculation Stages

• Sub-indices for each sector are collected through surveys conducted by TURKSTAT.
• The seasonality effect of sub-indices is adjusted.
• Weights are determined for the sub-indices in each sector’s index.
• Weighted sub-indices are summed and their averages are taken.
• The Economic Confidence Index is obtained by multiplying the average by 100.

Let’s say the sub-indices and weights of each sector are as follows:

Consumer confidence is an important indicator that reflects consumers’ perceptions and expectations of the economic situation. This confidence involves consumers’ assessments of their future economic situation and is often measured through surveys. In surveys, consumers are asked questions about what their economic situation will be like in the coming months, and this data is collected and used to calculate the index.

Business Trust

Business confidence is an indicator that reflects the economic expectations and trends of businesses. Factors such as future investment and employment plans of businesses and economic growth rate are taken into account in calculating the index. Business confidence is often measured with information from sources such as business surveys and industrial production data.

Unemployment rate

The unemployment rate is also an important component of the Economic Confidence Index. The unemployment rate is an indicator that reflects the level of unemployment in an economy. It is often measured by data such as official labor force statistics and unemployment insurance claims. High unemployment rates may indicate that economic confidence is low and may affect consumers’ spending tendencies.

Inflation rate

The inflation rate is also an important factor in calculating the Economic Confidence Index. Inflation refers to the general tendency for prices to increase in an economy and affects the purchasing power of consumers. The inflation rate is often measured by indicators such as the consumer price index (CPI) and is taken into account in calculating the index.

How to Interpret the Confidence Index?

Interpreting the Economic Confidence Index provides important information about a country’s economic situation and future. This index reflects the level of confidence of consumers and businesses in the economy and is therefore of critical importance.

An Economic Confidence Index above 100 generally indicates an optimistic outlook. This indicates that consumers and businesses have positive expectations about future economic conditions. Optimism can contribute to increased consumption and investments and strengthen businesses’ growth and expansion strategies.

An Economic Confidence Index below 100 generally reflects a pessimistic outlook. This indicates that consumers and businesses are concerned about future economic conditions. Pessimism can lead to a decrease in consumption and investments, lower profit expectations for businesses, and a slowdown in economic activity due to uncertainties.

The trend of the Economic Confidence Index is also very important. An increasing trend may indicate that the economy is strengthening and economic activity is tending to increase. This may signal that it is the right time for policymakers to take economic stimulus measures.

On the other hand, a declining trend may indicate that the economy is weakening and economic activity is slowing. In this case, policymakers can often take stimulus measures to stimulate the economy.

The Importance of the Economic Confidence Index

The Economic Confidence Index is an important tool for economists, policymakers and businesses. This index provides information about the overall health of the economy and helps predict future economic trends. It also plays an important role in identifying potential risks that may affect economic activity by measuring consumers’ and businesses’ confidence in the economy.

Monitoring the Economic Confidence Index is also important in creating and implementing economic policies. For example, if the index is low, policymakers can take various measures to stimulate the economy. Likewise, if the index is high, tightening policies can be implemented to reduce the risk of overheating.

As a result, the Economic Confidence Index is an important tool for assessing a country’s economic situation and predicting future trends. Regular monitoring of this index enables economic decisions to be made more consciously and helps maintain economic stability.

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Credit rating of countries, It is a measure of a country’s ability to repay its debt. These ratings help investors and other countries evaluate how much they can trust a country. Credit scores, which are very important in the global financial system and economic literature, are indicators that support the healthy functioning of markets and investors’ decisions. In our content, you can have detailed information about the credit rating systems that determine credit scores and what they mean.

What is Credit Score Rating?

Credit score rating is a scoring method that evaluates the current situation of individuals, companies or countries in terms of financial transactions and capital markets. While grading credit scores, the past and current financial or financial situations of the individuals, companies or countries evaluated are taken into account. Credit scores produced using scientific methods in the fields of mathematics, statistics, economics and business administration carry information about the future of the person, institution or country being evaluated. When considered in terms of credit scores of the countries that are the subject of our content, it is a set of applications in which the investment environment of that country is scored and its creditworthiness is revealed.

How to Determine Credit Score? How to Interpret Credit Scores?

A credit rating can be an assessment of a borrower’s credit history or an assessment of a potential borrower’s ability to repay their debt. When it comes to countries’ credit scores, they reveal the reputation of institutions or individuals in that country in the global debt market and investment environment.

Low credit scores mean that the country and its institutions and individuals have a high risk of not paying their debts (default). Global capital tends not to go to low credit scores. More importantly, since the risk of these countries is high, borrowing costs and risk premiums also increase. Giant investment funds, which are global players with a say in the capital and credit markets, make choices based on their credit scores when distributing their portfolios. In other words, a decrease in credit ratings may result in the withdrawal of capital from that country.

Although there is a negative view of the investment environment in countries with low credit scores, high returns may increase the attractiveness of these countries. Since economics is a science of balance, returns tend to increase as risk increases. As credit scores drop below the investment grade level, some capital groups may choose to invest in these countries, taking the risks into account.

Credit Ratings of Countries and Their Meaning

Although there is no standard representation for countries’ credit ratings, global credit rating agencies may adopt their own methodology and representation.

Commonly used long-term credit scores and their meanings are as follows:

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The financial world has also changed with the impact of the Pandemic. There has been a huge increase in contactless payment methods such as contactless cards, QR code payments and digital wallets. This has caused digital adoption in banking products to occur very quickly.

According to the research conducted by Mastercard in 2020, 74% of customers plan to use contactless banking methods even if the pandemic is under control. We can summarize sond trends in four basic items:

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Credit falling into legal proceedings

According to Article 18 of the Consumer Credit Agreement Regulation, the bank has the right to demand the entire debt by giving the consumer 30 days if a person does not pay two consecutive installments. So two in a row loan installment payment In case of failure, the consumer has at least 90 days to start the legal proceedings, even if the initiative is entirely in the hands of the bank.

What happens when the loan is subject to legal proceedings?

If you do not pay or restructure your debt during the administrative follow-up process, your debt will be transferred to the lawyer or asset companies. So now the legal proceedings begin. This process is carried out through a lawyer and then your credit record will be damaged.

After this process, situations such as not being able to get a loan for 5 years, blocking your bank accounts, confiscating a certain portion of your salary or initiating enforcement proceedings may occur in line with court decisions.

Can the loan be cancelled?

The loan can be canceled by exercising the right of withdrawal. You can exercise your right of withdrawal within 14 days after the contract is concluded with you, without giving any reason and without paying any penalty.

In case of a product return, after you forward your request to the seller from whom you purchased the product, the credit cancellation process is carried out by us after the request is evaluated by us.

Loan early closure methods

In order to pay off your loan before its maturity, you must apply to the institution from which you used the loan. Your remaining loan debt is then calculated and you can pay off your loan early if you pay the entire amount.

Early closure of loan with credit balloon payment

Balloon payment, which is an important payment option for those who want to take out a loan, includes not only ensuring that the loan installments to be paid every month are within more appropriate limits, but also paying off the entire debt by making a lump sum payment in the last installment. In short, in this form of payment, the first payments are low, while a lump sum payment is made in the last installment.

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What is credit?

As a result of the evaluation of various information and factors deemed necessary and relevant in order to reach a decision on credit worthiness, the opportunity given to a natural or legal person requesting a loan in the form of providing money, guarantee or surety in an amount and maturity appropriate to the needs, taking into account the laws and the bank credit policy. or limit.

What are the types of loans?

We can list the loan types as individual, commercial, SME, corporate, foreign trade and project loans. Although the types of Commercial Loans and SME Loans are similar, the biggest differences between them in the evaluation stage and criteria are the business size and number of employees.

SME loan types

• Women Entrepreneur Loan
• SME Support (Need) Loan
• Spot Credit
• Discount Credit
• Revolving Credit
• Non-Cash Loan
• Agricultural Loans
• Transport Credit

Commercial loan types

• Import and Export Credits
• Secured Commercial Loan
• Spot Loan
• Discount Credit
• Revolving Credit
• Open Credit
• Non-Cash Loan
• Vehicle Loan

Institutional loan types

• Industry and Tourism Loans
• Mining Credits
• Transportation Loans
• Energy and Public Works Loans

Foreign trade loan types

• Eximbank Loans
• Letter of Credit Loans
• Export Factoring
• Country Loans
• Acceptance/Aval Credits
• External Warranty

Project loan types

• Solar Energy Loan
• KOSGEB Loans

Individual loan types

• Personal finance credit
• housing loan
• Transport Credit
• holiday loan
• marriage loan
• mortgage consumer loan
• tradesman loan
• student loan
• Consumer Financing Loan

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According to Law No. 6493 “payment institution” refers to the legal entity authorized under this law to provide and perform payment services, and “Payment System” refers to a structure with common rules that provides infrastructure for clearing and reconciliation transactions for the realization of fund transfers arising from transfer requests between three or more participants.

Payment institutions authorized under the law are legal entities that provide payment services to their customers. These legal entities must be joint stock companies according to the Law, and the company and its partners must meet the conditions specified in the second paragraph of Article 14 of the Law. The payment services that the payment institution can offer are listed in the first paragraph of Article 12 of the Law. It is stated that an organization that has received a payment institution operating permit within the scope of Article 14 of the Law can only offer the payment services specified in the first paragraph of Article 12 of the Law and cannot engage in the issuance of electronic money.

“According to the law” Electronic Money Institution” means the legal entity authorized to issue electronic money within the scope of this law, and “Electronic Money” means money issued in return for funds accepted by the electronic money issuer, stored electronically, used to carry out payment transactions defined in this Law, and other than the electronic money issuer. It refers to the monetary value accepted as a means of payment by real and legal persons.

There are 5 main transaction processes in the sector.:

• Mobile payment
• Money transfer
• payment service provider
• Paying bills
• electronic money

Mobile payment: The product/service that the customer will purchase using a credit card, etc. It is reflected on the phone bill without any

Money transfer: It is a money transfer service through an agent.

Payment Service Provider: They are companies that generally provide electronic POS services (it can be virtual POS or it can be done through credit cards open to the internet) for credit card collection to SMEs.

Paying bills: Thanks to common representatives, the institution that generates the invoice ensures that payments are made.

Electronic Money: It allows individuals to open an electronic money account and transfer funds to be used in payment services.

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Electronic money institutions

Electronic money is a concept defined in our laws. Electronic money in law; It is defined as “the monetary value issued in return for funds accepted by the electronic money issuer, stored electronically, used to carry out the payment transactions defined in this Law, and accepted as a means of payment by real and legal persons other than the electronic money issuer”.

An electronic money institution is a legal entity authorized by law to issue electronic money. According to the law, this legal entity must be established as a joint stock company, and the company and its partners must fulfill the conditions specified in the second paragraph of Article 18 of the law. An electronic money institution authorized to operate in accordance with Article 18 of the Law may issue electronic money as well as provide payment services specified in the first paragraph of Article 12 of the Law.

Electronic money account

These are accounts opened in electronic fund institutions that enable payments to be made up to the amount of funds received. All kinds of payment transactions can be made with the amount transferred to the electronic money account.

Protection account

It is stated in the law that the funds received by the payment institution for the purpose of performing the payment service and the funds collected by the electronic money institution in return for the issuance of electronic money will be protected in accordance with the conditions to be determined within the framework of the secondary legislation to be issued.

The conditions under which the funds introduced within the framework of the regulation will be protected are specified in the regulation. Accordingly, the payment institution follows the separation of payment funds from other funds and can only be used for the purpose of carrying out the payment transaction.

The amount of unpaid payment funds at the end of the business day following the day of receipt is invested in protection accounts that will be opened by a bank within the scope of Law No. 5411 and will be used only for the protection of these funds.

Payment methods are held in custody accounts opened in the currency in which they were received. If it is not possible to open an account in the relevant foreign currency or would require an unreasonable cost, the settlement funds can be transferred to a leading currency and kept in a hedge account.

Records regarding the funds in the payment institution custody accounts are kept in a manner that enables tracking of payment funds based on payment service usage.

The payment institution is obliged to reconcile the records of the previous business day by comparing its own records regarding the funds in the protection accounts with the account statements to be received from the bank on a daily basis. It is mandatory to keep a record of any corrections made regarding reconciliation, excluding incompatibilities arising from timing differences. In case of a significant discrepancy between the records, the payment institution immediately notifies the institution.

If reconciliation transactions are carried out electronically, the statements regarding the transaction are securely stored by the organization in physical form or electronically.

If the reconciliation transactions cannot be carried out within the framework of the principles and procedures specified in the sixth and seventh paragraphs, the payment institution will immediately inform the institution.

The balances of funds in payment funds and protection accounts are reported to the Institution within the framework of the procedures and principles to be determined by the Institution.

As can be understood from the conditions specified in the regulation, there is no clear provision stating that the amount transferred to the protection account cannot be schemed by banks or a payment institution and only for their own interests, and these funds are not schemed in practice.

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Thanks to Digital Banking, we can say that many users almost do not visit physical banks. It allows you to carry out most business processes quickly and easily, from daily banking transactions to shopping transactions, via computer or mobile devices.

What exactly is digital banking, what do digital banking transactions involve? We have written the details of concepts such as these for you.

What is Digital Banking?

What is digital banking; It is the digitalization of all traditional banking products, processes and activities to serve customers through online channels. It covers all traditional banking services that are available 24/7 on mobile phones, computers and other compatible smart devices without the need for a customer to be at a bank branch.

Digital banking software makes all traditional services easier to access, understand and manage.

Internet Banking + Mobile Banking = Digital Banking

What are the Differences between Digital Banking and Online Banking?

Although digital banking and online banking may seem interchangeable, there are fundamental differences between them.

Online Banking; It covers only some transactions of basic banking. It is accessed over the internet and offers basic functions such as account management, statement access, and more. Online banking has limited scopes and cannot be expanded for additional banking services.

Digital banking systems are more flexible. High-level process automation to provide high levels of cost efficiency, security and flexibility to banks and their customers; Relies on web-based services and APIs. Modern banking solutions; It creates real-time data streams and accelerates core analytics, enabling a completely digital customer journey.

Benefits of Digital Banking

We encounter more and more digital banks every day. It is important to understand how Modern Banking solutions provide more useful and cheaper services than their traditional competitors.

In traditional banking systems, a lot of time and resources are devoted to control and accounting. As a result, all unnecessary back office processes are eliminated. Thus, operating costs are significantly reduced. It relieves many of the work of banks by automating processes related to daily transactions. Digital Banking reduces the risks of financial errors by minimizing the number of steps and people involved in transactions.

Risk assessments and identity verification systems enable banks to provide services to their customers easily and quickly. It allows people who are not active bank customers to access financial services. The biggest advantage of the digital banking system is that it is accessible 24/7. This provides customers with the opportunity to carry out their transactions from anywhere and access different services.

Development of Digital Banking in Turkey

The first ATM and point-of-sale terminals (respectively) in the banking sector in TurkeyPOS), plastic cards and automatic teller machines, office banking systems and telephone banking have been observed.

With the development of technology, we see that digital applications in the banking sector are developing more and more due to the impact of the pandemic. It is also possible to see a decrease in bank branches in countries where digitalization is at the forefront around the world.

When we evaluate more current digital banking data in our country; It is observed that the number of mobile banking users tends to increase and many transactions have replaced internet banking. Digital Banking On the other hand, it is seen that mainly money transfers and bill payment transactions are made.

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Fintech is an abbreviation formed by the combination of the English words Financial and Technology. It is used to describe companies that combine technology with the traditional financial system. Fintech companies are companies that provide technological convenience to banks, business owners, companies and consumers through various software and workflows to meet their financial needs. By using this technology via computer, mobile phone or tablet, users gain practical experience in accessing financial support.

Development of the Fintech sector in Turkey

Today, consumers expect fast financial services that they can easily access in every field. Fintechs, which try to provide the services provided by banks in more convenient ways, aim for a sectoral change. It is thought that Fintechs will take a greater place in our lives in the future with the new solutions they bring.

Studies are being carried out in the field of fintech in Turkey every day. The factors that increase fintech in Turkey are the increase in internet usage and mobile applications.

The digital wallet project was carried out in 2012 in cooperation with BKM Express and all banks and e-commerce companies in Turkey. With the development of financial systems in 2017, fintechs took their place in sectoral market areas.

Rates of fintech investments, which were 4.6 million dollars in 2012, increased significantly compared to the previous year in 2016 and reached 29 million dollars.

In Turkey fintech applications, with the development of digital technology, solutions and applications aimed at improving customer experience and supporting mobile payment systems are increasing. Thanks to the integrated solutions offered by fintech applications, companies can develop within themselves and gain serious profits in a very short time.

What are the differences between Fintech and Bigtech?

Fintech literally refers to the financial sector that uses technology to improve financial services. Fintechs foresee a competitive advantage with traditional companies thanks to their strong technological structures. The increasing use of technology and the increase in internet usage by some factors such as the Pandemic also showed the magnitude of the need for fintech organizations and also caused an increase in investment in them. It is possible to list the main factors increasing users’ demand for Fintechs as affordable prices, personalized experience and practicality.

Although Fintech organizations are relatively new and trying to increase their market size, BigTech companies such as Amazon, Google and Microsoft, on the other hand, have a large customer base, the ability to analyze big data faster and a very strong technological infrastructure.

In addition to the powerful solutions they offer, the success of FinTech companies in matters such as marketing products, ensuring consumer trust and managing big data is also important. At this point, the great experience of BigTech companies is an important factor. Because they can manage big data more easily, overcome marketing difficulties to a certain extent, and do not have much of a problem with consumer trust.

For example, the huge investments made by BigTech companies in the field of cyber security, together with other technology companies, help make the environment a safer place in general. BigTech companies are also accelerating processes for users to access more comfortable and useful services, thanks to their ability to parse and evaluate big data.

To date, there has been cooperation between banks and FinTechs on issues such as big data, artificial intelligence and machine learning. This cooperation provided mutual benefits to both parties. It will be common for possible collaborations to increase between banks, bigtech and fintech companies in the future.

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What is a prepaid card and from which institutions can it be obtained?

It is a digital card that allows spending by loading cash into it, without the need to open a current account such as a debit card or credit card. Prepaid cards can be obtained from electronic money institutions and some banks.

Can online and physical shopping be done with prepaid cards?

You can shop online as long as you have money in your prepaid card account. You can also use it while making physical purchases as long as you have balance on your card.

How to add money to a prepaid card?

Cash can be loaded directly from contracted ATMs, EFT/Money Transfer can be made from a bank account, or loaded from a credit card or from contracted stores and markets with your prepaid card.

Where can I use a prepaid card? Is a prepaid card valid abroad?

You can use it for all your physical and online purchases, as well as bill payments. Prepaid card can also be used abroad.

Is my identification information required to issue a prepaid card?

When issuing a prepaid card, identification information may not be required at first, but information such as identification information and residence address will be required to activate your card.

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If I delay my credit card for how many periods, will I be subject to legal proceedings?

There will be no transaction for the first 10 days after your credit card’s due date. After 10 days, the bank’s customer services will call and inform you. Delays up to 30 days after the due date will not decrease your credit score and will be treated as ordinary delays. If 30 days pass, the administrative follow-up process will begin and your credit score will decrease, but you will still not be blacklisted.

After the payment due date has passed one month, your bank’s customer services will be called to request information about the payment, and these calls are constantly received. Customer services will call you repeatedly during the 90-day period and inform you that legal action will be initiated. At the end of 90 days, if the credit card payment is still not made, legal proceedings will be initiated by the bank’s lawyer. In this process your credit score It will drop considerably.

The administrative follow-up process begins before the Legal Follow-up process. It is a tracking system initiated by banks to allocate debt from customers who will not pay their loan and credit card debts and will go through a legal follow-up process. One person from the due date If the person does not pay his loan or credit card debt for 90 days, banks have the right to initiate legal proceedings against this person. However, some banks initiate administrative follow-up of the debtor in question before the legal follow-up process.

In this case, the debtor is notified for the unpaid debt after 90 days and the debt is requested to be closed within 7 business days. In this case, a payment plan can be prepared for the debtor to pay off his debt, although it varies from bank to bank. In this case, if the person does not make the payment or does not contact the bank, the person’s file is transferred to the enforcement office to initiate enforcement proceedings, and thus the legal proceedings begin.

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What is a credit card?

It is an alternative payment tool to cash that banks and financial institutions provide to their customers, and which can be used for payment purposes at shopping points with contracted POS devices or for withdrawing cash advances from ATMs. The expenses must be paid monthly to the bank in one lump sum or in installments.

How do I get a credit card?

Credit cards can be obtained by applying to any bank. Banks convey their positive or negative answers to the people along with the evaluation. If positive, the credit cards go through the printing process and are delivered by courier with the obligation to check the consumer’s identity.

Terms;

• Being over 18 years of age or having family members sign the credit card agreement,
• The credit score is not at a risky level according to the bank’s assessment,
• In case of high limit credit card requests, proof of income can be provided upon request.

In addition, in accordance with the relevant legislation, those who do not have an income certificate can also get a credit card at the bank’s discretion (Student).

What is a credit card account?

The date on which expenditures made by credit card are reflected as a debt to the relevant person is called the account cut-off date. The account cut-off date is determined monthly. The list of expenses incurred each month is notified to the person on the statement date and 10 days are given to pay the debt.

What is the credit card payment due date?

The credit card payment due date is the last day on which you have to pay the entire debt to the card or the specified minimum amount. For each card, this date is determined as 10 days after the card’s statement date and you are expected to make payment to your card by this date.

When is credit card late payment interest charged?

If you do not pay your Credit Card debt (minimum or entire debt) on the specified due date or if you pay incompletely, late payment interest will be charged for the debt up to the minimum amount.

Which products cannot be paid in installments by credit card?

Expenditures related to printed and bullion jewellery, telecommunications, direct marketing, expenditures made abroad and meals, food, alcoholic beverages, fuel, cosmetics, office supplies and any tangible goods or services in the form of gift cards, gift vouchers and similar expenses to be made with credit cards. There is no installment payment for purchases of products that do not contain

What are credit card programs?

Cards with installment feature in Turkey.

Are there any credit card fees?

Article 6 of the Regulation on the Procedures and Principles Concerning the Fees to be Collected from Financial Consumers by the CBRT (Regulation) and Annex – 1 of the Regulation state that card issuers may charge an annual card fee due to the use of annual membership fee in the contract you signed regarding the credit card.

How to cancel a credit card?

If you want to close the credit card you have used, you can do this in several ways:

• Closing your credit card by requesting it from the bank branch,
• Closing your credit card by calling customer services,
• Closing your credit card using internet banking.

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Which Organizations Give the Loan?

• Banks
• Financing Companies
• Financial Leasing Companies (Leasing)
• Factoring Companies
• Representatives of Foreign Banks in Türkiye

What Information Do I Need to Share to Use Credit?

For Physical Application Requests;

An individual customer requesting a loan is required to submit his/her identity card, pay slip, written information that there is no lien on his/her salary, signature circular of the employee’s workplace, tax and citizenship number, residence document or electricity, water, etc. .

These documents must be obtained not only for the customer requesting the loan but also for the person who will provide the guarantee.

For Online Application Requests;

• Name surname
• Date of birth
• Place of birth
• TR Number
• Residence address
• Workplace
• Title
• If deemed necessary (Residence Certificate, photocopy of Identity Card, Income Certificate may be requested by the lending institution).

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How can I invest my savings?

Individuals generally want to make the most of their savings. When we look at investment habits from past periods, we see that financial investments have also come to the fore, apart from investments such as land, house and shop, which generally provide income. Recently, savers tend to turn to different financial assets other than deposits or participation accounts. This search for diversity not only supports the development of capital and money markets, but also contributes to increasing financial literacy. However, many people who invest in money and capital market instruments unconsciously and based on hearsay may also suffer. That’s why one of the most curious topics lately is which financial instrument to invest in.

Which financial instruments are most suitable for me?

Before answering this question, it is useful to mention some factors. It is generally accepted that investors exhibit three different behavioral patterns towards risk. The first group is the risk averse group. The second group is defined as the risk-insensitive group, and the third group is defined as the risk-loving group.

First of all, we need to point out that every financial investment has a risk factor. In an environment where there is no uncertainty, it is accepted that there is a directly proportional relationship between the return and risk of a financial instrument. What we are trying to explain here is that as you turn to risky assets, your return increases. But where the risk is high, the loss may also be high. That’s why we first need to decide what our risk perception is in financial investments. Sometimes risk perception may also be related to the amount of savings. Some people may not care about the amount of money that won’t hurt them if they lose it. This may increase the perception of risk. But as the amount increases, the perception of risk generally begins to decrease. For example; Risking ten TL money and risking a thousand TL or one million TL money may reveal different types of behavior. For some people, the situation may be different. The risk may be more sensitive for people who cannot tolerate the loss of a small amount of money. That’s why risk perception is so important. If you are a risk-averse person, it would be the best decision to turn to financial investments that we call low-risk or risk-free.

As we mentioned above, risk perception is very important for making the right financial investment. A second important issue is the maturity of investments. Will your financial investment be short, medium or long term? For example, we often hear about people investing in company shares based on hearsay without any knowledge or research. When these people cannot get the return they expect, they may incur losses due to buying and selling in very short terms. Stock markets are financial instruments whose returns will be higher in the medium and long term rather than the short term. Of course, stock selection is also very important here.

Another factor is whether the investment you make in a financial asset is your savings or money you will pay. For example; You have a debt and you have postponed its payment or it is not due yet. Are you planning to invest this amount with a financial asset? If it is money that does not belong to you or that you keep to meet any needs, it would be the best option to focus on financial investments with direct return guarantees without taking risks.

These questions can be expanded further. But basically, to summarize the factors that should be taken into consideration when investing in a financial asset: First of all, it is necessary to know well what the risks of financial instruments are. For example, when you invest your money with a term deposit, the profit you will receive when the maturity comes is certain. You do not risk losing principal (except in extreme cases). But if you invest in a stock, you actually become a partner in that company. In this case, the company may make a profit or make a loss. With this logic, your principal money is at risk. We will talk more about financial instruments and how risks are calculated in another article, but the main issue we want to emphasize here is whether you can take the risk of losing principal. Another issue is maturity. Although focusing on short-term investments can sometimes bring profit, it can often result in losses. Being patient and extending the maturity of the investment to a reasonable level whenever possible is an important element in terms of return.

Finally, another important issue is diversity. This is where portfolio management comes into play. A classic phrase you hear all the time is “don’t put all your eggs in one basket”. The most important point to consider when managing a portfolio is not to fill your basket with financial instruments that move in the same direction. What do we mean by this statement? To explain a little: If you keep financial products that are positively correlated with each other in the same basket, as the price of one falls, the other will also fall. But if you create a portfolio of products that are inversely correlated with each other, at least as the price of one instrument decreases, the other increases and the loss you will experience in the portfolio will be minimized. Creating a portfolio is a subject that requires knowledge, market monitoring and, in fact, expertise. That’s why our advice to all savers is; Leave this job to the experts. Investment and retirement funds, which you can choose according to your risk perception, are managed by people who are experts in their fields, have received training in these subjects, are familiar with all financial instruments, and constantly keep their finger on the pulse of the markets. Funds managed by these experts may be a good option for you to make the most of your savings.

To get detailed information about the funds, you can find it in the funds section of the website https://www.kap.org.tr/. You can also review the website www.tefas.gov.tr ​​to compare fund returns.

You can contact investment companies to get detailed information about financial instruments. Reports created by the research units of investment companies will also contribute significantly to increasing your financial literacy.

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What is a credit score?

Credit score, also known as credit score or credit score, is a numerical value obtained as a result of the analysis of all financial transactions between customers and financial institutions and banks. For reference; Finance, real sector and individuals use this credit score. For many years, it has been an important reference note that credit providers have used as a reference when examining the financial situation of individuals and organizations before granting loans to their customers and when calculating credit risk.

How is credit score calculated?

The credit score is formed by the ratio of various components by Findeks. Even though the ratio of the components changes periodically and new factors are added, it is determined within the scope of the 5 main headings listed below. Therefore, these headings can always be taken as the basis for credit score evaluation.

Positive Factors

In order to increase your credit score and see the positive effects, you need to pay your installments on time. Early payment, which is a common misconception, does not have as significant an effect as it seems. Just pay on the regular day. Making the minimum payment amount specified on your credit card account statement has the same effect as paying off your entire card debt. Because there is a certain payment amount expected from you on a certain date and you have made it.

Negative Factors

• Loan and/or Credit Card Payment Habit (failure to make loan installment payments and/or credit card minimum payments).
• Current Debt Status
• Credit Usage Density
• Credit Card and/or Overdraft Limit Excess

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The need for financing occurs when income is lower than expenses. In the first stage, actions to increase income (additional work, borrowing, selling fixed assets, etc.) can be taken. In the second stage, expenses should be reduced. For example, by saving money.

Together with financial institutions, income can be increased and expenses can be reduced. For example, a Credit Legislation Account (KMH) product can be used for immediate needs, a credit card can be used for short-term needs, and a loan product can be used for long-term needs. Loans used in the long term can help reduce expenses.

Methods to Increase Financial Literacy

Individuals who cannot manage their financial transactions correctly due to lack of financial information cause inefficiencies in terms of the country and their own economies with the wrong decisions they make. By conducting regular research and measurements, the most appropriate training programs should be prepared for all segments of society, from the lowest level to the most complex financial products, and special programs should be developed especially for women, children and youth.

Following the recommendations made by the World Bank and the Organization for Economic Development and Cooperation, many countries are working to increase students’ knowledge and awareness levels by adding financial literacy to the education curriculum.

How do I do financial management on my own?

• By planning income sources,
• By managing expenses,
• By saving money,
• By making an investment plan,
• By being prepared for unforeseen adverse events (natural disasters, etc.).

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Open Banking

Even in England, one of the countries that implemented open banking in the most planned and systematic way, the proportion of the population using open banking services has increased by 5 percent in three years. under This finding shows that new actions are needed to increase prevalence. In this context, the European Banking Authority’s call to local regulators to eliminate bank-related obstacles was followed by the proposal of Tide, one of the new generation banks. Tide recommended switching to a model where banks can generate revenue in exchange for data sharing, so that they do not see open banking as a threat. In order for open banking to be successful in countries, it seems like a valuable suggestion that banks should be able to create a business model.

Buy Now Pay Later (BNPL)

Another important issue in the FinTech field is Buy Now Pay Later, which means “buy now, pay later” in Turkish. So that; It has become one of the most frequently encountered expressions in the FinTech field with news of proliferation, innovation and investment. Swedish startup Klarna, the pioneer in this field, recently made headlines with the investment it received at a valuation of $31 billion. This news showed us once again how great investors’ belief in BNPL’s potential is.

Digital Bank

One of the most exciting developments in financial technologies is undoubtedly digital (branchless) banking. According to the economic reform calendar announced by the Ministry of Treasury and Finance, the issuance of the regulation allowing digital banking licensing in Turkey will be completed by December 31, 2021. New news comes every day about the digital bank business model, where we see successful application examples in all geographies around the world. Square, which made card collections simpler and easier with a magnetic reader installed on smartphones in the USA about 10 years ago, has entered the digital banking business this time. After a long process, the company named Square Financial Services was established in the USA within the scope of the license it received. Square, which enables hundreds of thousands of businesses across the USA to accept payments, will initially provide banking services to SMEs. It should not surprise anyone that the FinTech giant, which has such a wide network, will make its name among the big banks in the coming years.

Regulations (RegTech)

Australia is a market worth watching as a seminal example of a country that always pursues different strategies in the fight against technology giants. Australia, which has made a rapid breakthrough with its digital banking brands, has been on the agenda with negative developments recently. The termination of operations of Xinja, one of the country’s first digital bank brands, and the acquisition of another digital bank, 86 400, by National Australia Bank (NAB) suggest that there may be such possibilities in the future.

These developments raised questions in the Australian regulatory authority, APRA. APRA is preparing to tighten the criteria for granting digital banking licenses in order to create a sustainable environment. This development shows that the balance between being FinTech friendly and creating a healthy FinTech ecosystem should be carefully observed and caution should be taken.

Digital Assets / Cryptocurrencies

With the influence of their rapidly increasing values, individuals’ interest in digital currencies / assets is increasing. This interest also led the financial world giants to accelerate their efforts to position cryptocurrencies as a means of payment. In recent weeks, Visa and Mastercard announced that they have started working on payment with cryptocurrency at workplaces. First of all, card payment giants, which announce their work with assets defined as stable coins, especially emphasize the issue of complying with the expectations of the regulators. For this reason, we can say that it will be possible to use fixed currencies that meet the specified criteria in payments, even if not all digital currencies. We will see how this approach, which is considered to offer individuals a new option, will be received by individuals and regulators.

CBDC (Central Bank Digital Currencies)

While these developments are taking place in the cryptocurrency world, central banks’ digital currency (CBDC) efforts continue to mature. It would not be an exaggeration to say that China, which is progressing unabated in CBDC tests, is far ahead of other countries in the world in this field. The European Central Bank predicts that it will take 4-5 years for the digital euro to be implemented. News from other regions and countries indicate that we will witness many innovations in this regard by the end of this year and that the issue will become a new subject of international competition.

In summary; 2021 started with important FinTech developments around the world and it seems that it will continue without slowing down until the end of the year.

Source: FinTe6 prominent topics in the ch world – Bloomberg HT – Tuesday, 06 April 2021

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Last May, with a history of nearly ten years around the world, digital banks about which I include global developments.Only Digital BankI published an article titled “” and stated that legal regulations on digital banks are expected in our country at the end of 2021.

Finally, the first draft of the regulation we have been waiting for was published by the Banking Regulation and Supervision Agency (BDDK) last week. I would like to convey to you the highlights of the Draft Regulation on the Operating Principles of Digital Banks and Service Model Banking, which sets the standards in both digital banking and service model banking.

The regulation has 3 main purposes for our banking sector.

1. Promoting financial innovation
2. Increasing financial inclusion
3. Facilitate access to services

The importance of managers responsible for information systems

In order to ensure the necessary knowledge and care regarding information systems, which are the most important components of Digital Banks, it is emphasized in the draft regulation that “the highest level manager responsible for information systems should be at least the deputy general manager and the same manager should be a natural member of the board of directors.” In other words, top managers must have the education and experience to be information systems managers; It has been clarified that they will be both authorized and responsible for the duties they undertake.

The credit limit that can be given to financial consumers is four times the monthly net income

In the regulation, which defines digital banks as credit institutions that offer banking services through electronic banking services distribution channels instead of physical branches, the total of unsecured cash loans that digital banks can provide to a particular customer who is a financial consumer cannot exceed 4 times the average monthly net income of the relevant customer and cannot exceed the customer’s average monthly net income. It also states that if not identified, the total amount of unsecured cash loans that can be extended to such customers cannot exceed 10 thousand Turkish liras.

Digital banks will not be able to open physical branches

Customers of digital banks will only be financial consumers and SMEs. Digital banks will not be able to organize or open physical branches outside the headquarters and affiliated service units of the headquarters. Digital banks will be required to set up at least one physical office to handle customer complaints. Units that will be established as call centers will not be used as a branch other than this purpose. In addition, the regulation stated that the promised continuity percentage for digital banks’ internet banking and mobile banking distribution channels cannot be lower than 99.8 percent.

Paving the way for the Banking-as-a-Service (BaaS) model

The service, which is called BaaS abroad and service model banking in the regulation, found its place in the draft regulation. It is stated in the regulation that service banking service can only be offered to interface developers resident in the country. With the regulations in this section, an important step has been taken to enable non-banking sectors (e-commerce, telecom, retail, etc.) to offer banking services to financial consumers in the near future.

In addition, ensuring that identity verification (KYC) and transaction security obligations are fulfilled was among the operating principles determined for service banks, under which the service bank is responsible.

It should be noted that the Regulation stipulates that not only digital banks but also all banks included in the Banking Law can be a service bank and offer BaaS services.

The compliance of existing financial institutions is being clarified

Although the draft regulation does not require an additional application from existing banks for those who want to become a digital bank, the need to prepare a plan and obtain compliance to reduce and close their branches has been added. Considering the existing bank types in our country (deposit, investment and participation), it is not difficult to foresee a demand for transformation in this regard.

In addition, if payment service providers, electronic money institutions, and other financial institutions (financial leasing, factoring, financing and savings financing) want to operate as digital banks, it is included in the draft regulation that they can apply for an operating permit by adapting their status.

Only Digital Banks are coming in 2022…

I think that providing a strong legal basis in our country for two separate issues such as “Digital Bank” and “BaaS”, which have been talked about extensively around the world for the last decade, is a very important development for banking activities in our country.

All parties have important duties to make this important development a valuable gain for all stakeholders. Thanks to the regulatory authority – BRSA – which shares the draft regulation with the public in a timely manner, there will be an opportunity to express opinions and comments on the draft.

It is clear that the regulation, which is aimed to come into force on January 1, 2022, is an important stage in terms of digital change and transformation in our country. Thanks to digital banks, the transformation of banking itself will inevitably accelerate. On the other hand, banking with the BaaS business model; The scope of its relationship with e-commerce, telecom, retail and other similar sectors will present us with an outward transformation. Convergence between different sectors and developments in FinTech will bring about innovative business models that offer many new opportunities.

Source: Digital Banks Are Coming! – FinTech Istanbul– August 22, 2021

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In 2008, Satoshi Nakamoto An article written by a person or group named entered our lives with blockchain (blockchainI) definitioncontinues to grow stronger as one of today’s most popular and supra-ecosystem technologies.

Only nine page One article with starting blockchain adventure, today decentralized finance (AlsoFI) applications and With new trends like NFT continues to become popular.

Blockchain technologysi briefly; trustworthy, cannot be changeda shared, common distributed ledger happensak can be defined.

BlockchainIonly one digital Not a money project, he understood finance and financethey sayA structure that shakes us deeply.

BlockchainI‘nof potential

BlockchainI The potential of technology is being tested with studies and projects in many different business lines, especially finance. BlockchainI; digital rights, secure brokerage services (escrow)unchangeable smart of contracts (smart contracts) by testing all aspects of our lives in a very short time, more It looks like it will enter with solid foundations. When the studies carried out in many different business lines are examined, it can be seen that blockchain is divided into four main sections. by leaving It can be said that it is possible to evaluate;

• Smart Contracts

• Digital Coins

• Securities

• Record Keeping Tools

E-commerce applications, spherical payments and money transfers, peer-to-peer debt exchange and in microfinance studies, blockchainof The digital currency development opportunities it offers are used.

TDistributed ledger technology is beginning to be used in areas such as supply chain management, organization of health systems and vaccine reports, proving ownership and possession, and ensuring accuracy and trust in the voting and vote counting process, which is a pain in democratic countries.

The Transformation of the Financial Sector Has Already Begun!

year 2008n.d.a global financial sectoryour risk immediately published after bitcoin articlesi with finance of historyof One of the most critical turning points is happening And blokzinciriof large massesmeeting with It’s starting.

Nowadays allprinciples, your blockchainof evaluates application areas, blockchainofin to beings, the most popular to have applications competing. In this sense, China’s “Central Bank Digital Currency” application, yuan blockchainofto It aims to make China stand out all over the world with its financial technology. Following this step taken by China, studies on digital currencies from all over the world have accelerated. While countries such as Ukraine and Georgia announced that they had started their studies, “Sand dollarBahamas surprises everyone by being the first country to digitize its currency.

Blockchain in the USAI Its transformation is not much different from the rest of the world. The only difference is that the US is currently the world’s reserve currency. USA to the dollar to have and Fed President Powell Based on the latest statements made by , he thinks that it is not necessary to be a pioneer country for digital money. However, this situation may cause the USA to lag behind China in technology and finance. important It is seen as a parameter.Facebook Libra (ywith the name of width diem) project caused turmoil in traditional financial and supervisory institutions in the USA., Ripple Blockchain and cryptocurrency companies like (XRP) also SEC It’s on your radar.

BlockchainI The crisis pains experienced all over the world during the birth years of technology, the Covid-19 crisis with It creates a very suitable environment for this transformation to occur.

digital assets While its popularity as a store of value against inflation and aid packages worth trillions of dollars attract the interest of individual investors in crypto money and blockchain technology; Interest in this transformation leads to the formation of new initiatives, broad masses smart contracts, blockchainI projects and decentralized finance.

Transformation in the financial sector has already begun vto blockchainI technologies It is seen as one of the most important parts of this transformation with the solutions it brings to many important issues. Every small step taken to understand this change and capture the transformation will help us find ourselves in the new financial world of tomorrow. For those who don’t wonder, don’t learn, don’t ask, and don’t take any steps, I think there won’t even be a need to guess.

Source: Blockchain in the World of Finance – Bloomberg HT- 24 May 2021

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With the digitalizing world, user experiences, expectations and needs change every day.

Now users can experience all the convenience other in applications in seeingk wants.

Being able to adapt to the new world with such expectations And to the futureready for Being successful is only possible if companies are open to new business models, that is, change.

financial sectorThe most important players of bphoenixes too to this change And They need to change their business models to keep up with the transformation zira banks are now not only with each other, but also with each other. digital experienceto investing, user-oriented It also competes with different sectors.

NowadaysWhen we look at the institutions that have achieved success and, more importantly, have been able to maintain this success under changing conditions, we see that the most prominent feature is “evolving the business model”.

In these days when change and digital transformation continue at full speed, every industry, Every organization needs to break out of its molds, try the new, keep up with developments and allow its business model to evolve within the framework of all these elements.

Companies towith game-changing business modelsstays afloat

In every sector, generally accepted business models are formed over time and products are developed. with services develop on those business models, until one day innovative And Until a “game-changing” business model comes along and turns all the dynamics in that sector upside down.

“TO“the one who breaks the rules” business models; current sIgnored by the industry’s leading playersmish or to solve fell shortthey like or never sawwhat they say requestsIt comes with innovative approaches that solve problems in an agile way.

“Game changer”business model The need for a new definition as The reason is that with this new way of doing business, the way products or services are presented, the stakeholders involved in the development and launch of products and the roles assumed by those stakeholders have changed, in other words, the routine has been changed.

Today’s “out of the box” business modelin Pioneering examples that come to mind first; Companies such as WhatsApp, Amazon, Uber, Netflix, Airbnb The approaches they created. The business models they have developed have irreversibly changed our lives as users. For example, Amazon, which was founded a quarter of a century ago based on the online book sales model, business model In line with the development of technology and the needs of customers in timeto It shows us how it adapted to the conditions of the period by radically changing and renewing it many times.

New business models are coming to the finance sector

Transformation in the financial sector if FinTech‘s, So financial technology companies are leading the way.

FinnishTech‘s agile and focused chaby working rooted bto the phoenixes notPerhaps most importantly of all, we love growing and transforming.teach you to be skin-focusedit works.

Banking is evolving in a different direction with new business models and new players.mleshiyand the customer is at the center of this change.

Traditional banks trying to address changing customer expectations, digitalizing banksAnd FinnishTechs will shape the future of the financial sector.

In this conditions Efforts such as agility and digital change are not enough, sectors It needs to allow for evolution in the business model. Now the companies that adapt to this rapid change the fastest have the chance to survive.

Banking is becoming a tool, not a goal

Financial services are now receding into the background, with products and services integrating and merging with other sectors. It is accepted that the user does not consume to have a payment experience, but pays to consume. weC.line And Amazon offers investment and loan servicesWhatsApp payment services, IKEA such as banking servicess are increasing. In a way, financial services are becoming invisible.

Amazon Changes in payment processes in the retail industry (self-service, cashierless payments), as seen in the Go example of payments is invisible points to business models.

The customer will become even more KING

Consumers are valuedsuch as retail, travel, accommodation Personalized, digital financial services are also offered as part of services across sectors. Anticipate the customer’s financial needs by A digital commerce life that offers proactive offers and conveniences is being designed. These efforts, called contextual banking, bPhoenixes are preparing to respond in the same way. In other words, new showcase platforms are established where products and services based on customer needs are offered, and financial services wait their turn behind the showcase to be offered on these platforms when needed.

In this context, banks are becoming more specialized and outsourcing areas of activity in which they are not experts. And FinTech collaborativewhat they say use, integrate products and services into third party platforms when necessary, and use non-banking products when necessary. to invest in platforms that will offer It is necessary.

Babetween nkas and other sectors this is what started period of competitionIt would not be wrong to expect it to bring interesting “out-of-the-box” business models.

Source: New Business Models in the Finance Sector – Bloomberg HT– 10 May 2021

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