The world is witnessing a transition from traditional way of
living to technology-based lives all around the world. As
technology is becoming more and more widespread, people use it in
every aspectof their lives. One of these aspects is online banking
which has significantly become prevalent since the advent of the
technology. When banking is considered, we encounter with several
massive steps banking got through during its evolution. The history
of banking system dates back to 600 BC when the earliest coins were
put into circulation. Since then, banking revolved into what we
know today. The biggest steps in banking- just as in the other
areas of life- are the results of the advance in technology. We are
face to face with one of those steps today: online banking. Both in
the world and in Turkey online banking has become an indispensable
part of banking systems.
Online banking, or in other words internet banking or e-banking,
is a way of conducting financial transactions via the web-site of
that particular financial institution. The web-site of the
institution makes transactions possible for the customers of
financial institutions. The features available online differ from
one institution to another, however, in general, customers may
perform non-transactional tasks like viewing account balances or
perform transactional tasks like payments or transfers.
More and more firms today are trying to keep up with new trends.
In our changing world, nothing seems to stay the same as it was a
couple of decades ago. Apparently, technology shows its impacts in
each sector, including banking. Therefore, banking sector needs to
catch new trends in order to continue attracting its customers.
What banks need to do, however, is not only to transform their
businesses to online platforms but also to invest in new business
models. For the time being, banks seem to embrace only the
transformation option. Yet, leading consultants warn that
reinvestment option should also be followed in order to continue
surviving in the changing sector.
As a result of the need to catch up with the changing needs,
banks are investing in technology more than ever before. According
to the reports, in 2014, major banks invested 100 million dollars
in technology. The amount shows that banks are beginning to give
importance to today's reality of technology. World's
leading consultancy companies underline that most banks today tend
to work in traditional patterns. They add that, however, if the
banking sector keeps doing business in traditional terms and if
banks do not combine their traditional proceedings with technology,
there is no chance for such banks to survive.
It is obvious that the change in the sector did not result from
the change in the needs of customers, but from the change in
channels through which customers demand to perform their needs.
Customers' basic needs are still to withdraw or save money or
to make financial transactions, yet, now they demand these needs to
be fulfilled in the comfort of their houses.
Online Banking in Turkey
The situation in Turkey is not different from any other country.
Nearly all major banks embrace online tools to serve their
customers. More and more effort is made in an attempt to have the
best online interface among Turkish banks.
According to 2014 report of The Banks Association of Turkey, the
volume of online and mobile banking is rapidly increasing. The
report states that active users of online banking are currently 13
million people which account for 39 per cent of total bank account
As well as online banking, mobile banking is another escalating
trend in the modern world. According to the same research conducted
by The Banks Association of Turkey, there are 6.7 million active
users of mobile banking in Turkey. Mobile users consist of 62 per
cent of the overall number of users. It is also stated in the
report that the total number of people using internet and mobile
banking increased by 300% between the years 2009 and 2014.
These figures demonstrate that both in Turkey and in the whole
world the banking sector has altered its direction from traditional
patterns to online patterns. People no longer visit banks to do
their financial transactions. Instead, they use digital tools that
allow them to perform almost all the transactions without the need
to go to a bank branch which also helps banks to cut down on their
This change in the attitude has brought a change in the areas
that banks invest in. Major banks are aware of the altered trend
and they invested millions of dollars to promote themselves in the
digital arena. Experts warn that the banks which do not invest in
digital platforms are obliged to fade away from the sector in the
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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