Structural Characteristics of Savings Financing Companies and Their Role in Housing Finance

Housing finance in Turkey has long been provided predominantly through the banking sector; however, high interest rates, difficulties in accessing credit, and economic fluctuations have driven individuals toward alternative financing models. In this context, savings finance companies (SFCs), operating on the principles of interest-free finance, have rapidly grown in recent years and emerged as significant actors within the housing finance ecosystem. The aim of this study is to examine the position, financial indicators, and strategic role of SFCs, which acquired a legal framework through Law No. 7292, and to evaluate their potential as an effective alternative financing model in housing finance. The research focuses on the analysis of consolidated data from six SFCs that are members of the Financial Institutions Association for the period 2021-2024. Growth dynamics of the savings finance sector are analyzed based on statistical data, while a SWOT analysis is employed to identify strengths, weaknesses, opportunities, and threats. The findings indicate notable increases in indicators such as the number of customers, contract volume, asset size, and profitability. The results suggest that SFCs possess the capacity to respond to the demand for interest-free financing and can be regarded as an alternative model within the housing finance ecosystem.