The conversation in this episode of the Invest in Türkiye Talks podcast features Egem Eraslan, the Founder and CEO of Midas, Türkiye's largest retail investing platform. The discussion centers on the company's vision for transforming financial literacy and investment practices in the country. Midas offers a diverse range of investment options, including Turkish and US equities, ETFs (exchange-traded funds), mutual funds, and cryptocurrencies, aiming to create an engaging user experience that encourages daily use of the platform.
Midas's entry into the cryptocurrency market is notable for its focus on interoperability, serving as a bridge between traditional finance and decentralized finance. The platform aims to demystify crypto for users, making it both accessible and secure. Eraslan highlights Türkiye's centralized custodial systems as advantageous for asset security, in contrast to many other countries where users face greater risks in digital finance.
The discussion also addresses the relationship between fintech and traditional financial institutions. While banks are competitors in brokerage, they also serve as essential partners, enabling smooth transactions and ensuring the safety of user funds. Midas has successfully reduced user transaction costs, fostering a more competitive market and lowering barriers to entry for retail investors.
Another key point raised is the necessity of increasing financial and digital literacy. Eraslan argues that financial literacy should not be merely taught, but cultivated through accessible platforms and low-cost services. Midas has focused on reducing friction in the onboarding process and providing affordable investment options, facilitating self-directed learning for users. With over 80 million views on its educational content, Midas positions itself as a leader in financial education within the brokerage sector.
Eraslan emphasizes that the transformation of the financial system will occur gradually, leveraging technology to enhance existing structures rather than attempting to overhaul them in a single step. He predicts a shift toward vertical integration in fintech, where companies focus on creating cohesive, user-friendly products rather than aggregating numerous services that may not function well together. This contrasts with traditional banks, which often struggle with functionality despite offering a wide range of services.
In discussing the potential for foreign direct investment (FDI) in Türkiye's fintech sector, Egem Eraslan suggests that the government's role should be to nurture existing successful companies like Midas, rather than solely promoting the country to investors. By fostering the growth of top-performing companies, Türkiye can attract significant investment without relying on aggressive marketing campaigns.
Ultimately, the conversation underscores the importance of creating a conducive environment for fintech innovation, where access, low costs, and robust educational resources empower individuals to engage in financial markets confidently. Midas aims to be at the forefront of this transformation, ensuring that users have the tools they need to learn and invest effectively, thereby contributing to a more informed and financially literate society. The vision articulated emphasizes that, through thoughtful integration of technology and user-focused design, the future of finance in Türkiye can be both accessible and rewarding.