Central banks playing pivotal role in fintech evolution: CBRT governor 

Governor of the Central Bank of Turkiye Fatih Karahan speaking at the 24 Fintech conference in Riyadh. AN
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RIYADH: Central banks are crucial to the evolution of the fintech sector, the head of Turkiye’s top financial institution has insisted during a conference in Riyadh.

Speaking at the 24 Fintech event, Governor of the Central Bank of Turkiye Fatih Karahan emphasized that apex banks are not merely regulatory bodies but active participants in promoting innovation within the fintech sector.

The governor also noted that conferences such as the one he was addressing are vital for connecting stakeholders and addressing the challenges facing fintech startups.

“At the CBRT, we do not just oversee the financial sector. We actively engage with it to promote innovation and ensure that these advancements benefit the broader society,” he said. 

He also said central banks should focus on “two key areas" when ir comes to supporting fintechs: “fostering innovation and managing risks within the payment ecosystem,”

“Opportunities often come with challenges for fintech startups looking to scale across the region, navigating market fragmentation. The varying regulatory landscapes can be daunting, which is why gatherings like 24 Fintech are so crucial,” said Karahan. 

Karahan highlighted the importance of modernizing payment systems to advance digital solutions, improving efficiency, inclusivity, and security, while remaining vigilant about systemic risks posed by disruptive technologies. 

The governor praised the Middle East for its fintech innovation, attributing it to the region’s digitally savvy population and increasing demand for advanced financial services.  

“The youthful and digitally savvy demographics of our nations are driving the demand for new and better financial services. Combined with your highly innovative capacity, our countries provide fertile ground for fintech innovation,” Karahan concluded.