FinTech governance and its economic implications: The case of Türkiye

Technological developments have become a key factor in future growth through financial services. Governments were among the early respondents to the financial technology challenge. As a result, they have created a new tool for the regulatory sandbox, to improve local competitiveness opportunities and stem the risk of the widespread use of financial technologies. The Turkish economy is one of the top emerging economies with a robust financial system. This offers the chance to use financial technology to develop the country's economy. Research analyzing the contributions of financial technology to the economy through its influences is still uncommon, even though the topic of financial technology has been the focus of several studies in Türkiye. In this study, we investigated the influence of financial technology on the Turkish economy. The study provided a deep review of the development of the financial technology sector around the world as in Türkiye and provided an econometric analysis of how FinTech has affected economic growth, financial stability, and financial inclusion in Türkiye during the period between 2010-2021. The descriptive analytical approach has been used to describe the research problem, analyze the data related to it, and come up with a solution to the research problem. This study found that profound changes in FinTech and regulations and compliance with growing innovation in Türkiye occurred when they emphasized more FinTech afterward the 2008 financial crisis. In general, concluded the positive impact of financial technology on the Turkish economy during the studied period. The current study dealt with the impact of financial technology on banking, therefore, it is suggested to study the impact of financial technology on the non-banking sectors could be addressed in future studies. Moreover, a comparison between Türkiye and developed countries regarding financial technology governance and how it affected their economies should be studied as well.