Participation Banking Credit Guarantee Fund was established by the participation banks operating in Turkey and the Participation Banks Association of Turkey (TKBB) in cooperation of the Ministry of Treasury and Finance of Turkey in order to increase financial inclusion of SMEs and non-SME companies which cannot get enough loans due to the lack of deposits.
Participation Banking Credit Guarantee Fund Software System is demanded by the Fund that provides loans with its equity capital via the participation banks and guarantee for the loans. The system checks the written form requirements determined by the Fund and is used by the participation banks to provide loans to the companies that are found eligible after evaluation. All the banks can access to the system via a web interface and a web service. They can view applications, check and validate necessary information about the applicants (through e-governmental services and banking systems of other stakeholders) and accept/reject provision of loans to the applicants. Other information related to the loan provision, like amount of loans provided by a bank, loan repayment, can be accessed with the software system and guarantee payment process can be started in case of non-repayment of a loan.
Benefits:
-Increasing financial inclusion of SMEs and non-SME companies that cannot get sufficient financial support
-Automatic control of the written form requirements determined by the Fund by the software
-All the processes related to the Fund, receiving and approval of financial applications, tracking and reporting, loan provision and repayment, can be managed via a single software that integrates the web interfaces and core banking software of all stakeholder banks
-Provision of an easy-to-use application service and support 24/7
Central Invoice Record and Validation System software is developed to help participation banks for tracking the main features of the Islamic banking, for taking records of various service components provided by these banks centrally and for preventing repeating or fictious transactions. The system is a service-based platform, which works integrated with core banking software of participation banks, where search and registration processes are managed. Since the platform has access to the records of all participation banks in the system, it prevents a financial application from exceeding the amount of money in an invoice with repeated applications by using the same invoice. It also provides the information about total amount of funds that can be used jointly by all the participation banks in the system while keeping the information about share used by a given bank anonymous.
Benefits:
-It prevents a financial application from exceeding the amount of money indicated in an invoice, submitted during the application process, with repeated applications by using the same invoice.
-It integrates core banking software used by each participation bank in a single Invoice Registration System.
-It provides solid ground for participation banking by helping the banks to liquidate their financial receivables safely and fast.
With Retail Customer Arbitration Board Software, processes managed by the arbitration board that was organized, for settling disputes and disagreements that may occur between participation banks and their customers, by the Banking Regulation and Supervision Agency(BDDK) and the Participation Banks Association of Turkey(TKBB) are digitalized. The software receives customer complaints through e-devlet (e-government web service) and reviews the complaints with the written form requirements before sending them to related banks via web service. The banks provide feedback for the complaints and try to find solutions for customer problems. If a dispute is not settled between a bank and its customer, than the arbitration board takes action. It settles the dispute and informs both parties about its decision by using the web service as well.
All the steps of dispute settlement, application, review, bank evaluation, arbitration board decision making process and the informing the parties, can be managed with this software. It helps:
-Protecting retail customers’ rights provided by law with arbitration of an independent board
-Receiving complaints of retail customers easily and fast 24/7
-Monitoring the whole dispute settlement process
-Reducing the risk of any further disputes with a transparent dispute settlement process and informing of all parties
-Application of participation banking principles and practices to all parties equally.