Istanbul: Managers of Turkish participation finance institutions discussed new models in the sector as part of the Participation Finance Summit, organized by Anadolu at the Istanbul Financial Center on Thursday. The summit featured panels on the future strategies of participation banks and Trkiye's participation economy, participation-based investment products, and the role of digitalization in participation finance's future.
According to Anadolu Agency, the event was organized through collaboration between Anadolu and the Participation Banks Association of Trkiye, with contributions from Turkish participation banks Vakif Katilim, Kuveyt Turk, Ziraat Katilim, Emlak Katilim, Albaraka, Trkiye Finans, Dunya Katilim, Hayat Finans, TOM Bank, and Adil Katilim. As part of the summit, the panel titled 'Participation-Based Investment Products: Return Performance, New Models,' moderated by Serhat Akkan, the chief of the Economy/Finance Department at Anadolu, featured presentations by Ayhan Sincek, general manager of pension fund Katilim Emeklilik; Selam Ortakoy, general manager of investment firm Katilim Turk Yatirim; Kamil Kibar, deputy general manager of participation lender Dunya; and Muhammed Emin Ozer, general manager of portfolio management firm Albarak Portfoy.
In his opening remarks at the panel, Akkan said participation-based investment products have undergone a transition in recent years, both in terms of diversity and performance. Ayhan Sincek noted that participation finance, with a 40-year history, is a financial structure that has reached a considerable level of maturity, but when it comes to participatory insurance, it is still in its infancy. Sincek stated that although the history spans 15 years, the achievements in fund size and the weight of participation funds are significant.
Selman Ortakoy emphasized a period of significant asset transfer from money markets to capital markets, comparing Trkiye's current transformation to the one developed countries experienced a century ago. He highlighted that the share of deposit products in total assets has decreased significantly, while capital market products have gained prominence, indicating a major transformation in asset allocation.
Kamil Kibar highlighted that a vast majority of customer transactions are conducted through digital channels, with digital banking being their core motto. He mentioned the bank's active role in service-model banking, currently in the pilot phase, and their efforts to cater to young investors through venture capital investment funds.
Muhammed Emin Ozer shared insights into the integration of participation finance with capital markets, which began in 2003. He reflected on the absence of clear definitions for participation banking in the Capital Markets Law and the Banking Law at that time, emphasizing this as a significant turning point for the sector.