Digital Banking

Digital banking is a banking technology that offers customers the opportunity to make transactions through digital channels without going to bank branches. Digital banking is specific to the customer and the service offered is shaped according to the customer's needs. Digital banking requires qualified workforce.

In Turkey, in January 2022, a regulation was introduced on the Operating Principles of Digital Banks and Service Model Banking. With the regulation made, it will be possible to develop digital banking applications.

An important change and development process is going through in the field of banking. In this application, together with the regulations, all parties carry out the preparations simultaneously.

The total number of traditional banks in Turkey is 54. Digital banking potential in Turkey is quite high. Today, it is more possible for many customers, especially the young generation, to access banking services through digital banks, which traditional banks cannot prioritize in providing services. Traditional banks will be able to reach this group of customers by cooperating with digital banks. In this process, digital banks need to build their business models very well. In this way, it will be possible to turn the competitive environment created during the transition to the new structure into an opportunity for cooperation.

Collaboration of competitors will also enable the transformation of the existing order into a flexible way of doing business. Traditional banks are in need of transforming their own structures in an agile manner with the widespread use of mobile in the period of change and the change in customer needs. They need to review their way of doing business in connection with the customer segment. In this context, innovation is also very important.

The investments of existing banks in digitalization have gained momentum. There has been a decrease in the number of customers coming to the branch. Due to the decrease in customer demands in branch banking, the need for banks to work on branch service channels arose again.

In the new order, traditional large banks should be working on competition with an agile approach, so they should be able to realize their own transformations quickly and make good use of the opportunities that may arise. An important step has been taken in the processing of customer data, thanks to interface providers whose use in the financial sector has become widespread along with digital banking applications. In this context, it is aimed to ensure that every user is active and to expand revenue models through different channels. It seems like an alternative option for traditional banks to specialize in certain subjects. Along with all these processes, banks will be able to obtain their own digital licenses as well as competition.

Technology-centered development is not possible in digital banking applications. In addition, it is critical to analyze customer behaviors well and to draw a comprehensive roadmap, taking into account the change in the system in the process, in terms of ensuring sustainability.

Although the banking sector appears as a service branch today, it is possible to say that it will turn into platform banking in the future.