Digital transformation of the banking sector: A research on the Turkish banking sector

Innovations in information technologies have accelerated digitalisation in the banking sector, enabling the diversification of alternative distribution channels and the development of new financial products. This transformation not only increases transaction speed but also reduces operational costs and facilitates the provision of solutions tailored to customer expectations. As traditional branch banking is gradually replaced by internet and mobile banking, banks are restructuring their business processes in line with emerging technologies to gain a competitive advantage. Digitalisation plays a critical role not only in enhancing efficiency but also in improving the overall customer experience. The aim of this study is to analyse the development of the digital banking sector in Turkey over the past five years (2020-2024), based on digitalisation data provided by the Banks Association of Turkey. In this context, the number of individual, corporate, and total digital banking customers by gender and age group, as well as the number and volume of transactions conducted through mobile and internet banking, have been examined. Accordingly, another objective of this study is to assess Turkey's progress in digital banking in comparison with European Union (EU) member states and to determine its position in the digitalisation process in light of Eurostat data. In this regard, Turkey's digital transformation in the banking sector during the 2020-2024 period has been analysed, and individual digital banking usage rates have been comparatively examined with EU countries based on age, gender, education, and employment profiles. Within the scope of the study, the digital transformation of the Turkish banking sector has also been evaluated through nationally and internationally awarded digital banking practices of public, private, and participation banks. Keywords: Banking, Digital Banking, Digital Transformation, Turkey