Turkish lawmaker raises questions on new banking license for fintech startup Colendi

Abdullah Bozkurt/Stockholm

British national Ian Hannam, previously sanctioned in the UK for insider trading, drew attention and sharp criticism in Turkey following the government’s approval of a banking and financial operations license for a financial technology firm with which he is affiliated.

“The Banking Regulation and Supervision Agency (BDDK) has granted a license to Colendi Bank, a company in which a British citizen banned by the UK’s Financial Conduct Authority (FCA) due to money laundering is a partner. I would like to ask how this license was granted,” remarked Erhan Usta, an opposition lawmaker, during budget deliberations in a parliamentary committee meeting on Nov. 8, 2024.

Usta directed his question to Turkey’s Finance and Treasury Minister Mehmet Şimşek, a Kurdish politician who defended the government’s handling of economic and financial challenges faced under the authoritarian leadership of President Recep Tayyip Erdogan. Neither Şimşek nor the BDDK official present at the meeting addressed the lawmaker’s concerns regarding Colendi Bank.

Turkish lawmaker Erhan Usta has raised concerns over the licensing approval of Colendi Bank, questioning the involvement of a British investor who was previously sanctioned for insider trading: 

Hannam, a British investment banker and former head of capital markets at J.P. Morgan, was fined £450,000 in 2012 by the FCA for market abuse after being found guilty of sharing inside information from a client with a third party, in violation of UK law. While Usta accused Hannam of involvement in money laundering, the British financier has never faced those accusations in the UK.

The insider trading allegations arose from communications Hannam sent to a client in 2008, which the FCA characterized as confidential, price-sensitive information related to oil exploration in Iraq’s Kurdistan region that had the potential to affect stock prices. Hannam denied any wrongdoing and challenged the FCA’s decision in the Upper Tribunal, though his appeal was ultimately unsuccessful.

Following the Upper Tribunal’s rejection of Hannam’s appeal, Tracey McDermott, then director of enforcement and financial crime at the FCA, said “This has been a long and complex case but the Tribunal’s substantial judgment is a landmark. It should leave market participants in no doubt that casual and uncontrolled distribution of inside information is not acceptable in today’s markets.”

She added that “controlling the flow of inside information is a key way of preventing market abuse and we would urge all market participants to pay close attention to the judgment.”

Hannam chose not to pursue further legal challenges against the fine. A year after resigning from J.P. Morgan in 2012, he acquired Strand Partners, which was rebranded as Hannam & Partners in 2014, continuing to engage in various investments and business ventures both in the UK and internationally.

His name attracted attention in Turkey when he became involved in the launch of a Turkish fintech company, Colendi Bank Anonim Şirketi (Colendi), in Istanbul.

On Aug. 3, 2023, Turkey’s regulatory body, the BDDK, granted Colendi Bank a license to create a digital deposit bank. “Turkey has become the right country [in which] to establish our base,” Hannam stated at the time. “Our next step is to expand into new markets,” he added.

Colendi’s Turkish founder is Bülent Tekmen, who currently serves as the CEO of the company. Other individuals listed in the BDDK application include Erkan Kilimci, Deniz Devrim Cengiz, Ali Kürşad Bostan, Muhammed Furkan Ünsal and Murat Öztürk. According to a trade registry record dated Feb. 6, 2024, these individuals were officially declared the founders of Colendi Bank, with initial capital of 2 billion Turkish lira.

The UK Financial Conduct Authority fined Ian Hannam £450,000 for insider trading in 2012.

According to the company’s website, the current board of Colendi includes Cengiz, Hannam, Philip Bond, Sir David Walker, Christian Noyer, Bulut Arukel and İnanç Balcı, with Tekmen serving as chairman and his wife, Mihriban Ersin Tekmen, serving as a board member.

By mid-2024, the startup bank had successfully raised tens of millions of dollars, bringing its valuation to an estimated $700 million. On Oct. 31, 2024, the BDDK officially granted an operational license to Colendi Bank.

Tekmen and his wife also own a British company, Colendi Holdings Limited, which was established in August 2021. According to UK filings, his wife and Hannam are listed as directors of the company.

Trade registry records in Turkey indicate that the couple has been involved in several corporations and startups over the years. The primary vehicle Tekmen appears to have used for launching these ventures is a company called Tekmen Teknoloji Yayıncılık ve Reklamcılık Anonim Şirketi, an advertising and publishing firm specializing in technology.

The founder of Tekmen Teknoloji listed in December 2015 was Tekmen’s wife. Since then, the couple has alternated roles leading the company, according to various declarations made over time. Tekmen Teknoloji owns the financial technology news website fintechtime.com and publishes a monthly magazine under the same name.

In May 2017, Tekmen Teknoloji was listed as the founder of Colendi Yapay Zeka ve Büyük Veri Teknolojileri Hizmetleri, an artificial intelligence and data processing company that utilizes blockchain technology for financial services. The company, also controlled by the Tekmen couple, began offering banking and financial solutions, particularly focused on microcredits. It remains active, with Bostan listed as a board member authorized to represent the company in a trade registry declaration from October 2023.

Although the couple is presented as successful entrepreneurs focused on consumer satisfaction, particularly for those with lower incomes and limited access to banking services, some customers who use the company’s services disagree. On the public consumer complaints platform in Turkey, sikayetvar.com, the company has received hundreds of grievences from dissatisfied customers.

The Turkish regulatory authority, the Banking Regulation and Supervision Agency, approved both the establishment and operating licenses for Colendi Bank, enabling it to function as a digital deposit bank in Turkey.

Tekmen’s history is not as pristine as portrayed in favorable media coverage in Turkey. According to trade registry data, Bülent Tekmen has held or currently holds ownership or a managerial position in 22 separate companies in Turkey, nine of which have gone bankrupt or been dissolved in the past.

One of these companies that did not survive was Netron Bilgi İletişim Teknolojileri, a technology firm founded in 1997. It quickly grew into a leading tech company offering software development courses to students and  formed partnerships with Microsoft and government agencies in Turkey. Tekmen, who was not one of the founders, joined the company in 2004 and became its general manager.

The company went bankrupt in 2010, leaving behind debts to employees who were not paid their salaries and to students who did not receive refunds. A website dedicated to the victims of Netron lists numerous complaints filed by former employees and students. Tekmen was accused by victims of defrauding employees, students and business partners when the company was dissolved. Trade registry records indicate that the dissolution of Netron was finalized in February 2015.

Trade registry records reveal Bülent Tekmen’s involvement in the bankrupt firm Netron Bilgi İletişim Teknolojileri, a technology company that left numerous victims in Turkey.

Another unsuccessful venture launched by Tekmen was NBA Bilişim Hizmetleri Sanayi ve Ticaret Anonim Şirketi, a communication company established in May 2005 with four other partners. The company went bankrupt in July 2010 and its bankruptcy proceedings were finalized by a court in Istanbul in October 2012.

A financial technology company, Xpay Finansal Teknolojileri Anonim Şirketi, established in May 2017, went bankrupt according to records of a court in Istanbul dealing with commerce in February 2020. Another technology firm Gridvest Teknoloji Anonim Şirketi, set up in 2018, was dissolved in 2023.

Despite these setbacks, Tekmen continued his business ventures, making gains especially with the establishment of Tekmen Teknoloji in 2015 and Colendi Yapay Zeka in 2017. Since then, he and his wife, often with partners, have launched multiple businesses. For instance, in March 2021, Tekmen founded an insurance brokerage firm, Colendi Sigorta Acenteliği Anonim Şirketi, and secured agent agreements with several insurance companies, including AK Sigorta, Anadolu and Axa.

In June 2021, Tekmen founded another company, Colendi Tohum Teknoloji Investment Anonim Şirketi. In December 2021, Tekmen and his partner, Dolunay Sabuncuoğlu, established an investment and brokerage firm, Colendi Menkul Değerler Anonim Şirketi, which received limited operational licensing for the Istanbul Stock Exchange from the Capital Markets Board in 2022. Tekmen currently serves as the chairman of the board for the company, with Turkish firms Hedef Holding and Re-Pie Portföy Yönetimi A.Ş. also emerging as new partners.

In July 2022, Tekmen founded a digital and financial services company, Colendi Dijital Teknoloji ve Finansal Hizmetler Anonim Şirketi.

In January 2024, Tekmen established a company named Colendi Kümelenme Teknoloji AŞ, which he renamed Colendi B2B Teknoloji Hizmetleri Anonim Şirketi in October. This was followed by the launch of a new brokerage firm in February 2024, under the name Colendi Reasürans ve Sigorta Brokerliği Anonim Şirketi.

Bülent Tekmen has held or currently holds an ownership or managerial position in 22 companies in Turkey, some of which have gone bankrupt or been dissolved.

It appears the Tekmen couple has forged close ties with the Erdogan government. Tekmen’s wife was part of a delegation that went abroad, led by the Presidential Investment Office, while Tekmen himself has been involved in a project with Medeniyet University that is supportive of the Erdogan administration.

Through a web of companies established in Turkey and the UK, Tekmen, his wife, and their associates have made significant strides, securing major clients and raising tens of millions of dollars in funding. However, the long-term viability of these enterprises remains to be seen, given the heavily politicized regulatory framework in Turkey and the effective dismantling of the rule of law.

Tekmen’s wife is also a co-founder of the electronic payment processor service firm Ekart Elektronik Kart Hizmetleri Pazarlama Anonim Şirketi, established in April 2012. The company was later renamed İninal Ödeme ve Elektronik Para Hizmetleri A.Ş. Notably, among the company’s shareholders is Mehmet Ali Yalçındağ, a businessman who secretly collaborated with President Erdogan while managing the Doğan Media Group, a major Turkish media network.

According to trade registry records, Bülent Tekmen’s wife partnered with Mehmet Ali Yalçındağ, a businessman who secretly collaborated with President Erdoğan in a company named İninal Ödeme ve Elektronik Para Hizmetleri A.Ş.

In 2016, a leaked email scandal that exposed communications of Berat Albayrak, then energy minister and the son-in-law of President Erdogan. It was revealed that Yalçındağ was giving Albayrak a daily briefing on the media group’s activities and how they covered certain developments in favor of the government. After the scandal, Yalçındağ had to resign.

He is married to former media mogul Aydın Doğan’s daughter, Arzuhan Doğan Yalçındağ. His name was also exposed in the Pandora Papers, a leak of some 12 million documents that reveal hidden wealth and tax avoidance by some of the world’s rich and powerful who have offshore companies in the British Virgin Islands (BVI), Luxembourg and the Seychelles. The leaks showed that Yalçındağ was the owner of three companies in the BVI that he uses to buy assets in the UK. He owns Glenview Estates Limited and Fosetta Limited and co-owns Taltos Developments Limited with his wife, Arzuhan.

Yalçındağ is a member of the Presidential Policy Board, placing him in a unique position to influence the Turkish government. He previously served as the chairman of the Turkey-US Business Council (TAİK), a business interest group directly controlled by Turkey’s government’s Foreign Economic Relations Board (DEIK). From January 2018 until earlier this year, Yalçındağ used his position at TAİK to lobby on behalf of President Erdogan in Washington, DC. He is currently the chairman of the DEIK German Business Council.

It appears that the Tekmen couple’s decision to enlist Yalçındağ as a business partner helped expand their ventures and business networks. According to records, Yalçındağ left the board in July 2019.