Dubai Islamic Bank (DIB) has entered the Turkish digital banking and fintech sector with its investment in Technology of Money Group of Companies (T.O.M. Group), the financial arm of retail and manufacturing enterprise Aydin Holding.
T.O.M. Group’s objectives include innovations in the field of digital banking and financing services and promoting financial inclusion.
It lists T.O.M. Katilim Bankasi, touted as Turkiye’s first licensed digital participation bank; T.O.M. Pay Elektronik Para ve Odeme Hizmetleri, a licensed e-money services provider; and T.O.M. Finansman, a licensed financing company with a special focus on innovative digital products, as some of its companies supporting those objectives.
With DIB’s latest investment, it will become a significant minority shareholder in T.O.M. Group, acquiring 20% shareholding across the company with an option to increase it to 25% within 12 months.
DIB has long held the view that Turkiye was an attractive investment destination for a financial services institution, particularly for an Islamic bank, over the medium to long term, the bank said in a statement.
“Our entry into the Turkish banking sector through the investment in a digital financial group represents this dynamic approach to an ever-evolving market environment… We believe this deal in Turkiye will lay the groundwork for further initiatives in other key strategic markets for DIB,” shared Dr Adnan Chilwan, CEO of DIB Group, noting that the bank has already been operating in Turkiye for over 15 years.
DIB had first announced in May this year its plan to acquire a stake in the group to serve as its entry into the Turkish market, especially its digital banking space.
IFN previously reported that by the end of the year, there will be around nine participation banks offering Shariah compliant digital products and services to the Turkish population.