Boustead teams up with GEC to establish Turkey's first Islamic digital bank

Boustead teams up with GEC to establish Turkey's first Islamic digital bank
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ISTANBUL (July 6): Boustead Holdings Bhd and Turkey's Great East Capital (GEC) have teamed up to establish the republic's first Islamic digital banking to tap the huge potential of 85 million population.

Boustead deputy group managing director Izaddeen Daud said the company is planning to take up strategic investment in the venture.

He said GEC is currently in the process of applying for the digital bank's licence from the relevant Turkish authorities.

"With Boustead's experience and expertise through Affin Islamic Bank, Boustead hopes to be able to share Malaysia's expertise and knowledge to Europe, if not, the rest of the world.

"Our partnership with GEC will be our stepping stone into the huge Europe market," he told reporters after the exchange of the document of understanding between both companies to take up the venture here on Tuesday.

The event was witnessed by Prime Minister Datuk Seri Ismail Sabri Yaakob, who is on a four-day official visit to Turkey.

GEC's Umut Tekin said the companies are embarking on a new journey to establish the first Islamic digital banking in Turkey and hoping to realise it by the first quarter of 2023.

"With Malaysia being recognised as one of the most advanced Islamic finance ecosystems in the world and Boustead's experience and expertise, we are going to get the best experience in Malaysia and apply here," he said.

He said their long-term plan is to establish a sister digital bank in Malaysia that shares technology, customers, financial tools, and know-how across the two countries.

According to media reports, digital banks across the world have reached valuations of billions in less than seven years.