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Yapı Kredi completed Türkiye’s first fully digital letter-of-credit presentation using Enigio’s digital envelope.
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Under rules overseen by Banking Regulation and Supervision Agency, digital banking and fintech collaboration must keep risk on licensed banks and store sensitive data domestically
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Industry participants expect rapid growth in digital document usage across Eurasian trade corridors within three to five years.
Turkish bank Yapı Kredi carried out Türkiye’s first digital letter of credit transaction, using Sweden-based fintech Enigio’s digital envelope solution.
Turkish oil refining company Tüpraş was the applicant, receiving a letter of credit issued in favour of Lloyds Bank UK. All required documents were entirely in digital format, marking a milestone for Turkish trade finance and pioneering Türkiye’s participation in digitalisation at scale.
Trade Finance Global (TFG) heard from Alex Waites, Executive Director at Enigio. “We’re incredibly proud to see this milestone achieved by Yapı Kredi. Completing Türkiye’s first fully digital letter of credit document presentation using Enigio’s digital envelope is a landmark moment not only for the bank, but for the broader trade finance ecosystem in the region,” he said.
The relevant documents were created by Enigio. Yapı Kredi highlighted how the authenticity, reliability, and verifiability of the documents were preserved, and the aim was to reduce operational risks while shortening transaction processes.
“We are pleased to have committed this first that takes our country a step forward in foreign trade,” said Cahit Erdoğan, Deputy General Manager at Yapı Kredi.
Banking activities in Türkiye are governed by the Banking Regulation and Supervision Agency (BDDK). The global move toward digitalisation led to the establishment of the Regulation on the Operating Principles of Digital Banks and Service Model Banking in 2021.
“For Türkiye and the wider region, we believe this sets an important precedent. The region is a major trade corridor between Europe, the Middle East, and Asia,” said Waites. “Yapı Kredi has established its position as a leader in this shift, and we expect to see increasing momentum across regional banks and corporates as confidence in fully digital workflows grows.”
According to Türkiye’s Regulation, digital banks may offer most standard banking services, but their lending activities are limited primarily to individual consumers and small and medium-sized enterprises (SMEs). Licensed banks can provide banking products through fintech platforms using open banking systems.
All financial risk, lending decisions, and balance-sheet exposure must remain with the licensed bank. Customer identity verification, contracts, and transaction security must be conducted digitally in line with regulatory standards; banks and fintech partners are jointly responsible for cybersecurity and data protection.
Sensitive banking data must also be stored domestically in Türkiye, ensuring regulatory oversight and limiting cross-border data transfer.
“Looking ahead, we believe digital document penetration in trade finance will accelerate significantly over the next three to five years,” said Waites. “As regulatory frameworks evolve and industry standards mature, digital presentations will increasingly become the norm rather than the exception, particularly in markets that are strategically positioned in global supply chains.”
