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Can Fintech Promote Sustainable Finance? Policy Lessons from the Case of Turkey

Author

Listed:
  • Orkun Bayram

    (School of Business and Social Sciences, Antalya Bilim University, Ciplakli District, Akdeniz Boulevard No. 290 Dosemealti, 07190 Antalya, Turkey)

  • Isilay Talay

    (Trinity Business School, Trinity College Dublin, Luce Hall, Pearse St., D02 H308 Dublin, Ireland)

  • Mete Feridun

    (Department of Banking and Finance, Eastern Mediterranean University, 99628 Famagusta, Cyprus)

Abstract

This study contributes to sustainable finance literature by exemplifying promotion of sustainable finance through fintech solutions for emerging market economies by presenting the case of Turkey. Turkey is one of the largest emerging market economies in the world with a strong banking system and high adoption of technology, so it has great potential to benefit from fintech solutions to boost sustainable finance. For the case analysis, the data used came from a research platform for a Turkish start-up ecosystem, Turkish regulations, and documents released on Turkey’s sustainable finance strategies by Turkish and international institutions. We found that Turkey has made remarkable progress in increasing financial inclusivity for underbanked individuals and SMEs via providing contactless payment and contract systems and microfinance by mobile carriers and other online platforms. Turkey was also able to promote the responsible consumption goal for sustainable development by improving fintech solutions on payment systems with educational content on this goal. With upcoming developments such as the sandbox environment in Istanbul Financial Center, fintech solutions using Big Data, AI, and blockchain could emerge much faster with collaboration between banking and fintech sectors and regulatory institutions to better assess climate-related financial risks and form a national carbon trading mechanism.

Suggested Citation

  • Orkun Bayram & Isilay Talay & Mete Feridun, 2022. "Can Fintech Promote Sustainable Finance? Policy Lessons from the Case of Turkey," Sustainability, MDPI, vol. 14(19), pages 1-25, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12414-:d:929214
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    References listed on IDEAS

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    2. Arnone, Massimo & Leogrande, Angelo, 2024. "The Sustainability of the Factoring Chain in Europe in the Light of the Integration of ESG Factors," MPRA Paper 121342, University Library of Munich, Germany.
    3. Arvind Ashta, 2023. "How Can Fintech Companies Get Involved in the Environment?," Sustainability, MDPI, vol. 15(13), pages 1-18, July.
    4. Chengkai Zhang & Yanjun Zhang & Yu Li & Shan Li, 2023. "Coupling Coordination between Fintech and Digital Villages: Mechanism, Spatiotemporal Evolution and Driving Factors—An Empirical Study Based on China," Sustainability, MDPI, vol. 15(10), pages 1-26, May.

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