An Evaluation on the Development and Digitalization Performance of Participation Banking in Turkey

Abstract

Participation banking in Turkey is a system that has been an alternative to conven tional banking Although participation banking in Turkey has encountered many challenges thanks to the digitalization process, they could be able to reduce costs, increase revenues, ensure innovation, and respond to customer needs more quickly and effectively, in other words, they have strengthened their position in the finan cial sector and have managed to become an important alternative to conventional banks. The main goal of this study is to examine the development of participation banking in Turkey and to examine the performance of participation banks in the digital transformation process. It is revealed with the study that, efforts to increase product diversity, developing tools that can respond to customer needs more easily and quickly, informing the public (especially young population) accurately about participation banking, and increasing financial and digital literacy in the country may be the practices that will pave the way for participation banks in the digital transformation process. © 2025, IGI Global Scientific Publishing. All rights reserved.