The FINANCIAL — IFC, a member of the World Bank Group, hosted on June 22 a roundtable for senior finance industry executives, as part of an effort to expand financing for startups and boost innovation in Turkey.
The gathering brought together representatives from IFC, the Istanbul Borsa, Turkey’s leading banks, and Girisim Fabrikasi, an accelerator program at Ozyegin University. Participants discussed the impact of fintech on traditional banking models and also explored ways they could channel more financing to fintech startups, which often struggle to get the loans that are so vital to their growth. The roundtable was followed by the Innovation Marketplace, where 12 promising financial technology startups pitched their ideas to potential corporate partners, according to IFC.
“Start-ups not only develop the national economy but they also play a vital role for corporates which are seeking continuous innovation,” says Ihsan Elgin, the founding director of Ozyegin University Girisim Fabrikasi and co-founder of FinTech Istanbul. “We are hoping that the Innovation Marketplace becomes the first step of collaboration between the startups and corporates that attended the event.”
The Innovation Marketplace focused on technology that would make banking more accessible to small and medium enterprises (SMEs), the backbone of Turkey’s economy.
“With rising wages, low-value added manufacturing in Turkey is losing competitiveness, leaving technology upgrading and innovation as critical avenues for growth.” said Aisha Williams, IFC Country Manager for Turkey. “Events like this support Turkey’s natural entrepreneurial spirt and promote private sector development by providing the resources, know-how, and training to encourage new business development opportunities for Turkish companies.”
The roundtable and marketplace are part of an effort by IFC to promote innovation, encourage the development of SMEs and spur job creation. IFC has focused especially on financial technology. A potentially revolutionary field, which includes services like mobile banking, financial technology helps extend services to SMEs, which may not have access to conventional banking systems and loans. Globally, access to finance remains number one challenge for SMEs and IFC has invested over $160 million in equity and debt in early and growth stage financial technology companies in Asia, Africa, and Latin America since 2010.
This was IFC’s second annual Innovation Marketplace in Turkey, an effort to match entreprenuers with established coporates. Last year’s IFC Innovation Marketplace focused on healthcare, smart energy, and industrial data management, resulting in two new partnerships between the start-ups and corporates that attended the event.
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