Unlocking the Potential of Banking as a Service (BaaS) in Türkiye

Changing customer expectations, supportive regulations and technological advancements are transforming financial services. The line between financial and non-financial companies is blurring as more firms begin to offer financial products and services. Firms evaluate several options to offer financial services to their customers depending on their needs and ambition level. Banking as a Service (BaaS) model stands out with a lower investment requirement and faster time to market.

The BaaS model has created a new wave of specialized players across the financial services value chain: platforms, enablers, and license holders. The model promises potential business opportunities to both platforms as well as license holding banks. As a result, an increasing number of BaaS use cases and partnerships are emerging globally including a recent partnership between Fibabanka and Getir, a leading delivery service provider, in Türkiye.

In Türkiye, embedded finance offerings are already part of consumers’ lives - BaaS will accelerate this trend even further. The Turkish market holds significant potential for BaaS offerings, as customers show a strong willingness to bank with non-banks. However, the BaaS model is not without its challenges such as regulatory complexities, product and service limitations, or partner selection and management. Players must have a robust strategy to navigate these challenges and address key questions to unlock the full potential of the BaaS model.