Dubai Islamic Bank (DIB) is set to acquire a minority stake of 20% in Turkish financial services group T.O.M. Group of Companies.

Established by Aydın Group shareholders, T.O.M. Group includes digital retail bank T.O.M. Katılım Bankası, licensed e-money company T.O.M. Pay Elektronik Para ve Ödeme Hizmetleri, and T.O.M. Finansman, and their subsidiaries.

T.O.M. Finansman is a licensed financing company focussed on developing innovative digital products.

DIB’s equity investment in T.O.M. Group will allow the former to enter the Turkish digital banking and financial technology industry.

According to the terms of the agreement, the UAE-based Islamic banking company will have an option to increase its shareholding across T.O.M. Group to 25% within 12 months.

DIB Group CEO Adnan Chilwan said: “Our entry into the Turkish banking sector through the investment in a digital financial group represents this dynamic approach to an ever-evolving market environment.

“DIB is of the view that digital banking propositions in Türkiye and other markets will enhance our efforts to provide financial services to mass population segments, including the underbanked and non-banked segments.”

Through the partnership, Aydın Group intends to make T.O.M. Group a national leader with an aim to expand regionally in the digital banking and financial technology industry.

T.O.M. Group CEO Onur Özkan said: “The partnership we have established with DIB in the early stages of T.O.M. Group’s journey is highly encouraging and shows that T.O.M. Group is on track with its mission to provide affordable financial services to its customers.

“We hope to make T.O.M. Group, which has been established under the Aydın Group’s umbrella, a regional and a global leader in digital participation banking, aiming to provide access to financial services and promote inclusivity by encompassing segments beyond the traditional banking system.”

The deal has been approved by the Banking Regulation and Supervision Agency (BDDK), the Central Bank of the Republic of Türkiye (CBRT), and the regulatory authorities in the UAE.

It will be formalised following the clearance of the Turkish Competition Authority.