TURKEY Trends and Developments Contributed by: Sera Somay, Merve Kurdak and Doğa Pınarlı Dedebaş, Paksoy
under three main categories: (i) open banking, (ii) digi - tal banking and (iii) Banking-as-a Service (BaaS). 1.1 Open banking 1.1.1 Regulatory framework In parallel with payment initiation service providers (PISPs) and account information service providers (AISPs) regulated under EU Payment Services Direc - tive 2 (PSD2), amendments introduced in January 2020 to Law No. 6493 on Payment and Security Set - tlement Systems, Payment Services and Electronic Money Institutions (“Payment Services Law”) brought similar services within the scope of Turkish payment services legislation. With these amendments, pay - ment initiation services enabling the initiation of a payment order from a payment account held with another payment service provider upon the request of the payment service user, as well as account infor - mation services allowing the online presentation of consolidated information relating to one or more pay - ment accounts held with payment service providers, subject to the explicit consent of the payment service user, were formally recognised as payment services. These changes laid the initial legal foundation for open banking in Türkiye. Subsequently, in July 2020, open banking services were formally regulated and defined through the Reg - ulation on Banks’ Information Systems and Electronic Banking Services issued by the BRSA. Under this reg - ulation, open banking services are explicitly defined as electronic distribution channels where customers or parties acting on behalf of customers can remotely access financial services offered by banks through methods such as API, web services or file transfer protocols to conduct banking transactions or give instructions to the bank. Open banking services are recognised as part of electronic banking services and subject to requirements such as customer authentica - tion. Subsequently, data sharing in payment services was further regulated through the Guideline on Data Sharing Services in Payment Services issued by the
nect to the BKM through their application program - ming interfaces and will share customer data via BKM, subject to the explicit consent of the customers. Fin - tech entities providing account information services (AISPs) and payment initiation services (PISPs) will be able to obtain customer data directly from BKM. BKM is responsible for verifying whether the relevant fintech entity has obtained the required activity per - mits and licences and whether it complies with the applicable technical and operational requirements. Customer data will be shared only with entities that are duly authorised and licensed. 1.2 Digital banking 1.2.1 Regulatory framework Digital banking is primarily governed by the Regula - tion on the Operating Principles of Digital Banks and Service Model Banking (“Digital and Service Banking Regulation”). This regulation sets out rules on incorpo - ration, operations, management and capital require - ments for digital banks. Digital banks may carry out all activities permitted to credit institutions, depending on whether they are licensed as deposit or participa - tion banks. Digital banks may extend loans only to financial con - sumers and small and medium-sized enterprises (SMEs). However, digital banks are permitted to carry out transactions qualifying as loans under the Banking Law through their activities in interbank markets or money and capital markets, to extend loans to other banks, and to grant foreign currency loans to enter - prises exceeding SME thresholds. Where a customer initially qualifies as an SME but later exceeds SME size limits, the digital bank may continue to provide only the services permitted for non-SME customers until the customer falls back within SME thresholds. Digital banks are required to establish at least one physical office to handle customer complaints and may provide services through their own or third-party ATMs. 1.2.2 Digital banking market in Türkiye Türkiye’s first bank to operate without branches and entirely through digital channels is Hayat Finans, which obtained its operating licence in March 2023. The first digital public bank, as well as the first digital bank
CBRT in April 2023. 1.1.2 Implementation
The Interbank Card Center (BKM) acts as a techni - cal service provider, undertaking an intermediary role. Banks acting as account service providers will con -
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