At the end of March, HCP team got a chance to explore the dynamic city of Istanbul and to study the fast-growing financial market of Turkey. During those five days and ten meetings with Turkish financial institutions, we got a decent overview of the local financial market. Moreover, we learned what makes our company appealing to international customers.
Coming from Finland HCP has some obvious advantages in international business. Finland has a good reputation when it comes to education, transparency, equality, legislation, and a well-developed information society. The Nordic Model might look attractive for now, but our current welfare is largely built on debt. Finnish population growth has almost stopped to 5.5 million people. The proportion of net taxpayers is shrinking while the group of pensioners is growing fast.
”To uphold the current pension system we are missing some 800 billion euros and the distorted old-age dependency ratio can potentially lead to something called balance sheet recession. Thus, we can’t think of expanding our business only domestically, but instead, we have to look abroad to countries with a growing economy and workforce – such as Turkey”, CEO Tommi Kemppainen sums up.
Since its foundation in 2007, HCP has aimed at reshaping the financial sector. We have done so by modern customer service design and by including the consideration of all stakeholder interests to our corporate responsibilities.
To name a few examples, we have been supporting up and coming artists, starting a fund for professional athletes, and by catering our services to third sector institutions, and by serving our private customers internationally online. The company’s voluntary efforts for responsible business were recognized last year by a B Corporation certification.
All these parts of our business model were something that our Turkish colleagues found appealing and it was pleasant to find how we shared very similar values on business. Like the representatives of Istanbul Portföy Yonetimi put it: ”You are just like us, it’s just a different city”.
In Turkey, there is a rising demand for foreign investment instruments. For now, the Turkish tax law favors domestic investments and for this reason, we do not expect to receive large investments in our portfolios in the near future. If the Turks invest in foreign portfolios, however, it seems that there are no reasons why they would not opt for a Finnish asset management company amongst other western banking services. We are happy to have set up some good relationships so that the connections are ready for some regulatory shifts.
HCP team would like to thank all the Turkish financial institutions for informative discussions, Mr. Turgay Kuleli for organizing the meetings, and especially Mr. Halil Kulluk from DEiK – Foreign Economic Relations Board for an exceptionally warm reception in Turkey.