On 08.12.2021, the Report on Financial Technologies in Payment Services (“Report”) is published on the website of the Competition Authority (“Authority”).
The Report has been prepared in order to emphasize the importance of making maximum use of the radical transformation in the financial sector in our country and to reveal the necessity of inter-institutional cooperation in this field.
The Report focuses on the issues supporting development of Financial Technologies (“FinTech”), exclusionary actions of established enterprises, regulatory framework, market dynamics and market entry of large technology companies.
In the Report, the reasons for the emergence of FinTech sector, their effects on the sector, the difficulties faced by the players while marketing their products and services, and the obstacles on the increase in innovation and competitive conditions in the market, exclusionary effects and actions originating from both the market and established enterprises are evaluated. Valuable suggestions from the perspective of competition are made for the development of the FinTech ecosystem taking into consideration the dynamics of the sector.
It is stated that the fact that FinTech companies are highly dependent on the banking infrastructure in their activities, creates a vertical relationship between FinTech companies and banks, and in cases where services are not provided to FinTech companies by banks, Fintech companies are not able to provide products and services they have developed to the consumers.
It is evaluated that this market structure, in which FinTech companies receive services from banks in the
upstream market and compete with banks in the downstream market, has similar characteristics to markets such as telecommunication and retail.
The Authority established a convergence between the telecommunication market and the payment services market and stated that each bank shall be in a dominant position, taking into account the customer data of companies providing financial services.
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You may reach the full Turkish version of the Report via the link below: