In a highly regulated industry like banking, regulations certainly have a strong impact on the industry dynamics. Turkish regulators have been working on incentivizing competition and innovation in the banking industry as other regulators across the world.
For this purpose, there has been numerous high-impact regulations recently announced by various government bodies and regulators. Some of the more impactful ones can be seen below:
Regulatory arbitrage: Banks and fintechs take advantage of regulatory arbitrage opportunities (e.g. exemption from MSC cap for PSPs, ability for banks to send money to cryptocurrency exchanges as opposed to fintechs)
Fintechs in payments: Fintechs are increasing penetration both on issuing (e.g. digital wallets, prepaid) and acquiring (e.g. PSPs) in payments
Intensifying competition: Competition in the industry is continuing to intensify as importance of branches decrease
Emergence of neobanks: Introduction of a digital banking license, remote onboarding and COVID-19 will increase feasibility for neobank business models
Emergence of ecosystems: VUK-507, Open Banking and changing consumer behaviors are supporting the emergence of ecosystems (e.g. superapp)