COMPETITION LEVEL ANALYSIS FOR THE FINTECH SECTOR IN TURKIYE COMPARED TO GERMANY

Purpose- This study's objective is to observe Türkiye’s fintech market structure by their competitiveness results. To get a better observation Türkiye compared with a fintech-developed country as Germany. The inconvenient definition of fintech caused this study to examine 4 massive fin-tech sectors. Especially current situation of the financial-technology market there are several branches. The study refrains from the engineering-intensive branches to serve its purpose. The study includes; Payments, Lending, Personal Finance, and Insuretech branches. We expect to observe the competitive dynamics for several branches. Methodology- The study selected the “entropy index” as a method. The entropy index shows the market depth for related sectors. It can be defined as a density analysis. We can make the index with at least 5 observations. However, the increase in the observation level causes the low-variance level index results. Findings- The study made its index by the top ten firms by their sales revenue level. The study observes the market in 5 branches. The conclusion part supplied 5 different density results. In that situation, observations can be seen more specifically for the market. The study used the entropy density index to observe the competitiveness level of the market. Results were multiple because the branches were divided from the sector. Every branch has its dynamics. On the Türkiye side, we expect fewer companies than in Germany. However, in the personal finance sector, we can observe the competitiveness levels are close. However, in this study, we can also observe high gaps between the sectors of insurance tech and lending. This study did not have the purpose of determining the factors behind them but the study tried to give political suggestions. Conclusion- The density level for lending and personal finance sectors can be compatible with a high-fintech level company. For the insure-tech side, companies value and numbers are lower. The payment sector has more technology than the other sectors but the number of firms are lower than in Germany. We were expecting the competitive structure are not improve in Turkey because of the low-quantity firms. At some branches, we obtained the results that support this expectation. However, the view of the study observed that some branches has low competitive market structure when compared the Germany. But at some points, there are massive cliffs between the two countries. We can attribute the situation to the habits. The habits of technology meant. Especially on the insurance side, Turkey should improve itself. Türkiye should be getting more investment, subsidies, etc. in the sector of insure-tech and payment sector. Because their competition level is a risk to the country’s market structure. This study includes no detailed politics but suggests to subsidies and incentives from the government side. Government should support and encourage the new-entry firms or entrepreneurs for the sector of fintech.