The idea was to create a new financing model which would meet the working capital requirements of jewellers who had been seriously affected by the recent financial crisis. The company wanted their partner bank to allocate credit limits to jewellers for up to one year, with favourable pricing and collateral conditions.

Atasay chose Garanti Bank as the partner bank to implement their new financing model because of the bank’s innovative approach, ability to find quick solutions with its state-of-the-art technology and experience of creating ‘firsts’.

The primary focus of the gold financing system, named Golden Key, was on gold loans with convenient credit conditions. Atasay granted guarantees to some of its jewellers and Garanti rapidly completed the operations of credit allocation and set credit limits for those jewellers that could not secure credit under normal circumstances.

Thanks to this new application, which is one of the most important technological developments in this project, the limitation on the purchase and sales of gold as bullion has been removed. The opportunity of allowing credit usage with the smallest gold unit – the cubic centimetre, has also been provided for the first time.

The system was designed to finance the purchase of gold from Atasay, based on file transfers, credit limits were however set according to the amount of gold purchased. After allocating the credit limits, all of the lending, collection of commissions and repayment processes run automatically.

“For the first time in Turkey, Garanti has gone one step further and facilitated not only gram-based, but centimetre-based (density) purchase and sale of gold, providing jewellers with credit usage which exactly corresponds to the amount of their purchases from Atasay.

Thanks to this new application, which is one of the most important technological developments in this project, the limitation on the purchase and sales of gold as bullion has been removed. The opportunity of allowing credit usage with the smallest gold unit – the cubic centimetre, has also been provided for the first time,” says Ekrem Tosun, Financial Consultant

As a result, gold has itself become a payment tool and the solution developed is now being offered to other Garanti customers.

As Tosun concludes, “It’s a great success story to make these changes, which were obstacles to the development of the jewellery sector. This really opens the door to a new world for jewellers in Turkey, and it was made possible by the strong and sustained co-operation between Atasay and its bank.”

It’s a great success story to make these changes, which were obstacles to the development of the jewellery sector. This really opens the door to a new world for jewellers in Turkey.