FinTech, is being defined as a technological enterprise trying to change/renew the financial world with disruptive innovation. Grouped in broad outline, FinTech can be classified in four groups, these being payment, insurance, peer to peer trading and investment.
The number of Turkish enterprises in the field of FinTech have to be approached in two different ways. The number of financial technological enterprises in Turkey is exceeding 200, but only 70 of them intend to create a new world by the means of disruptive innovation. With the 6493 numbered “Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions” coming into force in the year 2015, a particularly significant increase in the number of payment and collecting companies was observed. Therefore, it looks like the 200 figure mentioned above will exceed 250 in 2016.
We can say that 2015 was the year of FinTech in terms of investments. This is because the highest number of investment in the last 5 years was reached. In 2015, $9.6M has been invested into FinTech enterprises in Turkey, this figure is 255% higher than the previous year.
It is attention drawing that the fields in the market which have the most players are those providing a payment platform for businesses and services for collection of invoices, though it might be possible that mergers or buyouts will be observed in 2016 in these fields.
Turkey is still untouched in FinTech areas other than payment. In 2016, we might begin to see many FinTech start-ups in the insurance and investment areas. However, subjects such as peer-to-peer lending seems a little difficult in our country where banking is very advanced.
In a nutshell, FintTech is the hottest area and the year 2016 is the year in which many mergers and innovations will be observed.