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.
