Which Is the Best Digital Bank in Turkey? An Economic Perspective
As an economist contemplating a world of scarce resources and abundant choices, I often dwell on the question: when one channel offers numerous alternatives, what determines the best? In Turkey’s evolving financial market, the rise of digital banks presents precisely this dilemma. We are faced not merely with selecting a convenient mobile app, but with assessing institutions that mediate savings, credit, liquidity, trust and broader social prosperity. Which digital bank stands out in Turkey — and why does it matter for individual decisions and collective welfare?
Turkey’s Digital Banking Landscape: Market Dynamics and Institutional Context
Turkey’s banking sector has undergone a transformation. Regulatory initiatives such as the Banking Regulation and Supervision Agency (BDDK)’s “Regulation on the Basic Principles of Digital Banks and Service Model Banking” marked a significant shift: digital banks defined as credit institutions providing services primarily via electronic channels are now formally recognised. [1] The report by Strategy&/PwC highlights that Turkish banks which embrace digital transformation are losing less market share and gaining competitive advantage. [2] Moreover, Turkey’s young population and its rapid adoption of digital channels for banking strengthen the structural potential of digital banks. [3]
Thus, the institutional and market backdrop is favourable: fewer physical branches needed, lower overheads, and the possibility of reaching under‑banked segments. But the question “which is best” implies more than potential — it implies performance, trust, fit with social welfare goals, and resilience in a volatile economic environment.
Key Criteria for “Best” in Context of Turkey
When evaluating the “best digital bank” in Turkey from an economic perspective, several criteria emerge:
– Accessibility and reach: The ability to serve rapidly, remotely, and inclusively strengthens individual welfare and aggregate savings.
– Cost efficiency and pricing: Lower fees, competitive deposit/loan rates, and operational efficiency matter for consumers and firms alike.
– Innovation and service scope: Beyond deposits and transfers — investments, credit, SME services.
– Trust and regulatory resilience: In a country with macroeconomic volatility, a digital bank must instil confidence and comply with regulatory frameworks.
– Contribution to social welfare: If a bank expands access (especially SMEs, underserved groups) it promotes broader economic inclusion.
Prominent Players: A Closer Look
Among Turkey’s digital banks, two names stand out in recent years: T.O.M. Katılım Bankası A.Ş. (known as TOM Bank) and ON Dijital Bankacılık.
– TOM Bank was established as Turkey’s first licensed digital retail bank. [4] With backing by the Aydın Group and link to A101 retail chain, it aims for wide reach, “every home and every pocket” banking, and financial inclusion. [5]
– ON Dijital Bankacılık, under Burgan Bank, has grown rapidly, boasting over 1 million customers in three years and aiming for 5 million in five years. [6] It emphasises remote customer acquisition, low barriers, and investment‑friendly features. [7]
Given this, one might tentatively identify ON Dijital or TOM Bank as frontrunners in the “best digital bank” category — but the answer isn’t absolute.
Weighing Implications for Individuals and Society
From an individual’s standpoint, choosing ON Dijital yields advantages: quick onboarding, modern UI, investment‑friendly features. Choosing TOM Bank might favour those seeking financial inclusion or alternative banking models (participation banking). But what does that mean for societal welfare?
For society, a digital bank that lowers costs, expands access, absorbs underserved segments (e.g., SMEs, young people), and diverts resources from expensive physical infrastructure to productive uses contributes to higher aggregate welfare. If TOM Bank’s inclusive model or ON Dijital’s investor‑friendly model achieve volume and stability, they can enhance savings rate, credit availability, and financial resilience.
Yet risks exist: Digital banks rely on technology infrastructure—cybersecurity, user‑interface, regulatory compliance. As the legal commentary notes, limitations on credit customers, risk of system failures and dependence on external vendors are non‑trivial. [1] If the “best” digital bank fails in a macro shock or suffers reputational damage, the social costs escalate.
Which is Best? Tentative Conclusion and Future Scenarios
So, is there a definitive answer to “Which is the best digital bank in Turkey?” The realistic response: not one but a shortlist, and the “best” depends on the criterion. If you emphasise speed of growth and investor‑friendly features, ON Dijital leads. If you emphasise financial inclusion, retail scale, first‑mover digital retail license, TOM Bank has the edge.
From a macro‑economic viewpoint, I lean towards TOM Bank as the most societally promising “best digital bank”, because its model emphasises access and inclusion — which in markets like Turkey may yield stronger externalities (i.e., raising overall savings, reducing branch‑cost burdens, enhancing digital literacy).
Yet for an individual consumer seeking modern features and ease, ON Dijital may feel “better”.
Looking Ahead: Economic Scenarios and Implications
Over the next 5‑10 years, the scenario that matters: Digital bank leaders will shape Turkey’s banking ecosystem, influence liquidity allocation, and determine how resilient the financial system becomes vis‑à‑vis macroeconomic shocks. If digital banks scale, operating costs shrink, credit flows to SMEs increase, the digital economy accelerates — social welfare rises. If they fail to manage risks or regulatory walls tighten, the system may fragment and costs may increase.
For you as a reader:
– Which digital bank might serve your needs best given fees, features, trust?
– How will your personal banking choice ripple out into broader economic effects (e.g., financial inclusion, competition, cost innovations)?
– In a high‑inflation, high‑volatility environment like Turkey’s, does digital banking provide a buffer or an added risk?
Ultimately, choosing the best digital bank in Turkey is not merely a personal finance choice — it intersects with institutional innovation, market structure and societal trajectory. Pick thoughtfully, and observe how your choice aligns with a future where banking is not just cheaper, but more inclusive, efficient and resilient.
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Sources:
[1]: https://www.lexist.com.tr/en/digital-vs-traditional-banking/?utm_source=chatgpt.com “Digital banking versus traditional banking in Türkiye: the legal …”
[2]: https://www.strategyand.pwc.com/tr/digital-banking-overview-and-potential-in-turkey?utm_source=chatgpt.com “Digital Banking Overview and Potential in Turkey”
[3]: https://ifm.gov.tr/digital-banking?utm_source=chatgpt.com “Digital Banking – Istanbul Financial Center – IFM”
[4]: https://bazaartimes.com/turkiyes-first-licensed-digital-retail-bank-tom-bank/?utm_source=chatgpt.com “Turkiye’s first licensed digital retail bank: TOM Bank”
[5]: https://www.paradergi.com.tr/finans/2025/02/17/turkiyenin-en-buyuk-dijital-bankasi?utm_source=chatgpt.com “Türkiye’nin en büyük dijital bankası – Para Dergi”
[6]: https://fintechtime.com/2025/02/halil-ozcan-on-dijital-bankacilik-ile-5-yilda-5-milyon-musteriye-ulasacagiz/?utm_source=chatgpt.com “Halil Özcan: “ON Dijital Bankacılık ile 5 yılda 5 milyon müşteriye …”
[7]: https://www.bloomberght.com/on-dijital-bankacilik-5-yilda-5-milyon-musteriye-ulasmayi-hedefliyor-3742786?utm_source=chatgpt.com “ON Dijital Bankacılık 5 yılda 5 milyon müşteriye ulaşmayı hedefliyor”