Dubai Islamic Bank (DIB) has announced its entry into the Turkish digital banking and financial technology sector through an equity investment in T.O.M. Group of Companies. As one of the largest banking groups in the United Arab Emirates, DIB will become a significant minority shareholder in T.O.M. Group, which includes Türkiye’s First Licensed Digital Retail Bank, a licensed e-money company, and a licensed financing company specializing in innovative digital products.
This strategic move by DIB aims to tap into the fast-growing digital banking and financial technology sector in Türkiye. DIB will initially acquire a 20% shareholding in T.O.M. Group, with the option to increase its shareholding to 25% within the next 12 months. The partnership between DIB and Aydın Group, the founding shareholder of T.O.M. Group, aims to make T.O.M. Group a national leader in the digital banking and financial technology sector, with the goal of promoting financial inclusion and enhancing access to digital financial services in Türkiye.
The CEO of DIB, Dr. Adnan Chilwan, expressed his confidence in Türkiye’s financial system and the opportunities it presents for a financial services institution, particularly an Islamic bank. Dr. Chilwan stated that the partnership with T.O.M. Group will not only be mutually beneficial but will also strengthen the economic ties between the UAE and Türkiye.
Onur Özkan, the CEO of T.O.M. Group, welcomed the partnership with DIB and highlighted T.O.M. Group’s mission to provide affordable financial services and promote inclusivity beyond the traditional banking system. Özkan expressed his commitment to further investments in the digital banking field, with the vision of becoming a leading global digital finance company.
The transaction has received approval from the relevant regulatory authorities in both Türkiye and the UAE and will be formalized after clearance from the Turkish Competition Authority.
This partnership showcases DIB’s dedication to Türkiye and its consumer banking sector, as Türkiye holds a pivotal position in DIB’s growth strategy. The investment in T.O.M. Group is seen as a significant step towards providing financial services to the mass population segments, including the underbanked and non-banked segments, through digital banking propositions.
With this strategic move, DIB aims to establish a strong presence in the Turkish digital banking and financial technology sector, benefiting from Türkiye’s sizable market dynamics and growth potential. The partnership between DIB and T.O.M. Group is expected to unlock new opportunities and deepen the economic ties between the two countries.
Source:
– Fintechnews Middle East. (2023, October 2). Dubai Islamic Bank Enters Turkish Digital Banking via Equity Investment in T.O.M. Group. Retrieved from [https://fintechnews.ae/19909/digital_currencies/dubai-islamic-bank-enters-turkish-digital-banking-via-equity-investment-in-tom-group/](https://fintechnews.ae/19909/digital_currencies/dubai-islamic-bank-enters-turkish-digital-banking-via-equity-investment-in-tom-group/)
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