(MENAFN- The Peninsula) Deepak John |
The Peninsula
Doha: Banks are exploring new ways of delivering banking services to customers with rise in fintech innovations in Qatar. They are working with fintech solutions and are eager to work to facilitate a better customer journey.
The relationship between Qatar and Turkey has been very strong and Qatar financial Centre aims to attract financial institutions from Turkey, specifically Islamic and digital banks, said a senior official during an event.
Presidency of the Republic of Türkiye Finance Office and Qatar Financial Centre (QFC) organised a webinar entitled 'Fintech and Digital Participation Banking: Turkish Solutions and Opportunities in Qatar'. The virtual event shed light on digital banking in Qatar and explored participation banking (which is a name given to Islamic banks mainly in Turkey, as well as in the broader Mena region) ecosystem in Turkey and the developing attributes of providing innovative financial services adopted by participation banks in Turkey and how they are maximising the customer experience with the help of technology.
Murat Ali Çengelci, Vice President of the Republic of Türkiye Finance Office delivered the opening speech.“Today the focus will be placed on the participation banking ecosystem in Turkey and Qatar and the evolutionary path of the digital solutions. Triggered by the pandemic outbreak, the digital solutions have sped up through the banking sector. Competition from fintech startups in other outside banking industries have forced banks to reshape their models, accelerating their models of digitilisation into their services and to make the customer experience more efficient,” he said.
Turkey presents huge opportunities both in the area of fintech and participation finance.“We signed a MoU with QFC which highlighted the importance of strategical partnership and how we can extend our existing relations. We will be very happy to have QFC as one of our main regional partners and our cooperation will lead to fruitful results for the financial ecosystem of both Turkey and Qatar,” he said.
“The banks find themselves in a transition period where investing in digital and technological development is necessary. Turkish participation banks have been taking an active role embracing the important developments during recent periods, the official noted.
Participation finance is one of the most comprehensive and important alternatives offered to the existing financial structure with its nature and basic principles. It reduces the risk and establishes a close link between real sector and financial sector.
Henk Jan Hoogendoorn, Chief of Financial Sector Office at QFC, gave an insight into digital banking in Qatar. He said,“The relationship between Qatar and Turkey has been very strong. Our aim is to attract financial institutions and specifically participation and digital banks. Qatar is an ambitious nation, the country has a lot of potential and is most stable country in the GCC,” he said.
“We are a fast-growing economy, and we have an excellent international set up which operates under UK common law. It is a great place to do business from and the central bank is open to work with fintech companies and banks that have solutions and we have a specific payment service provider license for companies that can help us,” he added.
Hoogendoorn elaborated,“With Qatar well positioned for long-term growth, the Islamic banking segment is poised to play a key role in Qatar's diversification drive.
“There is a focus on Islamic banking in general and there are very solid rules and if the participation banks have an interest to operate in Qatar, we can offer a great home. The other area of growth and Islamic finance in general is to make the link between the Islamic finance/investments and ESG.”
Qatar offers attractive and a range of opportunities, there is a lot appetite from sovereign wealth fund to develop this regional relationship with Turkey. “The type of companies we are looking at are banks but also asset managers, and funds. We are open to work with you and tap into the market of Qatar.”
Speaking about participation banks and Islamic finance he said,“We see opportunities and we would like to stimulate Islamic fintech and Turkey is already ahead in this, and we are more than happy to introduce the technology that is used in the digital and participation banks to the Qatar Islamic banks,” he added.
Istanbul Finance Center project has two pillars – fintech and participation finance. The Finance Office is taking several steps aiming to increase the share of participation finance in total banking to reach 15 percent by 2025. As of today, the asset size of participation finance banking has reached up to $30bn representing a market share of 7 percent.
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