[14]
establishment KKB has expanded the spectrum of supplied services to minimize
risks likely to be faced by member organizations in the course of their activities
and develop products allowing boost their effectiveness. Currently, KKB has
total 180 members, including 52 banks, 62 factoring, 8 insurance, and 15
investment companies, 26 leasing entities and 14 consumer lending companies.
One of the productive services launched by KKB was LKS (Limit Kontrol
Sistemi – the Limited Control System). According to the banking legislation of
Turkey (the Law on bank cards and credit cards) total limit of cards of a
customer, who uses a credit card for the first time, to be obtained from all credit
institutions, may not exceed his/her income on the first year by 2, while income
on the second year by 4 times. LKS, commissioned in 2006, is a real time
platform that collects and processes information on persons’ loans and other
bank cards, and enables to set a unified credit cart limit per borrower – it has
allowed to meet the above claim. Inquiries on LKS numbered 140 million
according to results of 2016.
MİDES (Müşteri İtirazlarının Değerlendirilmesi Sistemi – the Customer
Appeals Assessment System) is an example of another product. MİDES is the
system that allows to argue and eliminate claims of data subjects, who plead that
the information collected on them is inaccurate, in an online regime. It takes
MİDES 2 hours to argue and eliminate the shortcome, it is the fastest system
among peers to investigate and respond to consumer objections.
We consider the TARDES system, introduced by KKB in 2013, needs to
be particularly emphasized. TARDES (Tarım Kredileri Değerlendirme Sistemi –
the Agricultural Credit Rating System) in harmony with its name is a database
and platform that allows to evaluate agricultural loans. Being a joint fruit of the
EBRD, the Frankfurt School of Finance and Management and KKB, TARDES
virtually provides its users with a number of useful methods and data in the
course of financing of agri-sector, the high risky sector with complicated
underwriting, out of which the following needs a particular emphasis:
[15]
various products related to single consumer can be assessed
simultaneously;
a unique credit limit can be offered given trade and other activities of a
borrower within and beyond the agri-sector, and his/her creditability;
limits are in place on allocation of funds to a borrower exceeding
his/her throughput and needs;
loans can be issued for a borrower within pre-defined timeframes
depending on manufactured products.
TARDES influenced the increase in the size of loans allocated to
agriculture. If to compare the size of financial resources allocated by banks to
agriculture before the system was commissionned (2013) with the results of the
first quarter of 2017 we can see that funding jumped by 155%.
The following chart displays the size of loans allocated by Turkish banks
to agriculture from 2011 to the first quarter of 2017:
Chart 3. Agricultural financing in Turkey.
Payment systems
Payment system is the system for transfer of funds with officialized and
standardized common mechanisms and rules on payment operations processing,
clearing and/or conduction of settlements. Effective and efficient operation of
31,607,697
33,132,675
39,620,712
45,866,412
61,116,346
74,744,418
80,503,579
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
2011
2012
2013
2014
2015
2016
2017
Investments to agriculture, thousand Turkish liras (TL)
[16]
financial markets and the banking system in the country, reliable settlements
among economic agents with an eventual highly effective monetary policy
necessitate availability of stable and uninterrupted payment systems. Growth rate
of the economy, high competition and mutual integration on the backdrop of
developed financial markets rest upon the effective national payment system.
Payment systems, an integral part of the financial infrastructure, has a considerable
effect on overall economic activity in the country.
Case study
M-PESA
M-PESA, mobile payment and money transfer system, was
commissionned by mobile operator – the Safaricom operating in Kenya, one of
most dynamically growing countries in Africa. Initially programmed to repay
micro loans over mobile phones, M-PESA was re-formatetd as a countrywide
money transfer system later. Based upon a simple mechanism the system allows
to withdraw cash and make money transfers using mobile phones. Any registered
user places certain amount of funds in his/her mobile debit account in the first
instance. If necessary to cash funds, a customer applies to the nearest Safaricom
agent (such agents were numbering 100,744 in 2016). After the agent ascertains
that there are funds available in person’s account in the requried amount he/she
conducts the encashment. The similar scheme applies to money transfers over
mobile phones.
In the early days of M-PESA users were numbering 19,671. But thereafter
the company posted significant growth having increased the number of its users
to 24 million across the country (50% of the country population). Indicators by
periods are as follows: