Groups Turkish homebuyers into rotating savings pools so members can buy property without paying interest.
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- Depends onMidstream position: 5 outgoing, 6 incoming connections
- ScaleMarket cap is above the global median
Groups Turkish homebuyers into rotating savings pools so members can buy property without paying interest.
Katilimevim Tasarruf Finansman A.S. organises Turkish homebuyers into rotating savings pools where each member makes fixed monthly payments into a shared fund and receives a lump-sum payout at their assigned turn to buy a property, with no interest charged at any point. The pools run under two approvals that no competitor currently holds together — a BDDK participation finance licence and a Sharia compliance board certification confirming this specific tontine rotation format as interest-free — so a member who leaves mid-cycle cannot take their position or their payment history to any other lender and start again. Because each member's payout date depends on every earlier member paying on time, the rotation schedule enforces payment discipline collectively rather than through individual credit decisions, which is what conventional Islamic banks cannot replicate with a standard loan product. The same structure that makes the pools self-enforcing is also the company's central vulnerability: if BDDK restructures the participation finance licence category to exclude rotating pool payouts, or if the Sharia boards withdraw certification of the tontine format, both the regulatory permission and the Islamic-finance distinction disappear at once, and the pools have no legal container left to operate inside.
How does this company make money?
The company charges an administrative fee on each member's monthly contribution throughout the savings cycle. It charges a separate setup fee when a new pool is formed. When a member reaches their rotation position and uses the lump sum to buy a property, the company also collects a facilitation commission on that purchase transaction.
What makes this company hard to replace?
A member who leaves mid-cycle forfeits their position in a multi-year rotation that cannot be transferred to another provider. Their payment history inside this company's pools also determines their priority ranking when applying for future pools — that record has no value anywhere else. And because the Sharia certification applies specifically to this tontine structure, no other Islamic lender offers an equivalent product that a member could move into and resume from where they left off.
What limits this company?
When one member in a pool stops paying, the company cannot fix it automatically. Staff must negotiate with that person individually, rebuild the payout schedule by hand, and notify every member whose date has shifted. That manual work repeats for every default across every active pool at the same time. As the company opens more pools, the cost of managing defaults grows just as fast — meaning the company needs more staff to run more pools, and cannot simply grow by adding members.
What does this company depend on?
The company cannot operate without five named inputs: the Turkish Banking Regulation and Supervision Agency (BDDK) participation finance licence, Sharia compliance board approvals certifying the tontine format as interest-free, Turkish participation banks that hold the lira deposit infrastructure the pools sit inside, the Credit Registry Bureau (KKB) for screening incoming participants, and a functioning Turkish real estate market where members can actually complete property purchases when their payout arrives.
Who depends on this company?
First-time Turkish homebuyers who want Sharia-compliant financing but cannot qualify for conventional mortgages depend on the pool system as their primary route to ownership. Turkish real estate developers selling mid-tier housing depend on these buyers showing up with funds — without the rotation payouts, many of those sales would not close. Turkish participation banks also rely on this company's savings pools to serve Islamic finance demand they could not meet on their own.
How does this company scale?
The software that forms pools and matches participants by income and home-price target can handle more members and more pool starts without much added cost. What does not scale the same way is default resolution — every participant who stops paying requires a human to negotiate, restructure the affected pool, and update every subsequent member's payout date. More pools running at once means more potential defaults to manage by hand, so staff headcount must grow alongside pool volume.
What external forces can significantly affect this company?
Turkish lira volatility is a direct threat: members commit to multi-year savings cycles, and if the lira loses value sharply, the lump sum they eventually receive may no longer cover the home price they planned for. Turkish Central Bank policy changes could make competing Islamic finance products more attractive, pulling potential members away. Turkish real estate price inflation is a separate pressure — if property prices rise faster than participants are saving, members reach their payout date and find they can no longer afford the home they originally targeted.
Where is this company structurally vulnerable?
If BDDK rewrites the participation finance licence rules in a way that excludes rotating pool payouts, or if the Sharia compliance boards decide the tontine format no longer qualifies as interest-free, the pools lose both their legal home and their Islamic finance standing at the same time. The company could not move the structure into another licence category — the entire mechanism only works because those two approvals coexist.
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