The subsequent drive to cut costs has made this a big year for Internet banking. It used to be easy to make money when the state had a heavy presence in the market, now it isn't. The only way out is to start cutting costs. Profit margins have shrunk so everyone is trying to get into online banking. The growth of ISPs, many of which are owned by leading online banks, has been held back by restrictions on Internet companies listing on the Istanbul Stock Exchange.
Turkish banks have another, important interest in Internet development.
The sprawling conglomerates that own them are also the main players in the Internet access industry, almost all of which are still privately held. Garanti Bank, owned by the Dogus group, founded Ixir, Turkey's second largest ISP, which also aims to be a leading online retail vehicle. Ixir has announced plans to seek a listing abroad early next year. So far, banks have provided online services free of charge in a bid to attract customers online and increase their subscriber base. But with electronic banking growing in popularity, charging customers could be just around the corner.