Digital Banking in Turkiye

Erkan Kose##common.commaListSeparator## Hasan Dikici##common.commaListSeparator##Betul Yildirim

Digital banking has become a critical component of financial systems worldwide; however, adoption rates remain uneven across emerging markets. This study aims to identify the key barriers to digital banking adoption in Türkiye. This study employs a quantitative research design using survey data collected from 471 bank customers in Türkiye. Factor analysis, reliability analysis, and ANOVA tests were conducted to identify the primary barriers and demographic effects influencing digital banking adoption. The results reveal that digital banking adoption barriers are primarily explained by two main factors: lack of trust and lack of knowledge. Furthermore, digital banking usage increases significantly among individuals with higher education levels, higher income levels, and younger age groups. This study provides empirical evidence on digital banking adoption barriers in an emerging market context and contributes to fintech adoption literature.

A Continuous-Time Framework for Time-Weighted Returns, Money-Weighted Returns, Internal Rates of Return, and Dietz Return Estimators

William C. Lindsey##common.commaListSeparator##Gita Govahi

This paper develops a unified continuous-time framework for portfolio return measurement in the presence of external cash flows. Beginning with a stochastic differential equation describing portfolio value dynamics, we demonstrate how several widely used return measures—including the Time-Weighted Return (TWR), Simple Dietz Return, Modified Dietz Return, and Internal Rate of Return (IRR), also known as the Money-Weighted Return (MWR) or Dollar-Weighted Return (DWR)—may be interpreted as alternative reductions or approximations of a common portfolio evolution process.

The framework clarifies the relationships among these methodologies and identifies the role of invested-capital approximation in performance measurement. In particular, the Modified Dietz Return denominator is interpreted as a first-order approximation to average invested capital within a continuous-time setting, providing a theoretical explanation for its practical effectiveness. The analysis further examines the sources of divergence among return measures and demonstrates how differences arise from cash-flow timing, cash-flow magnitude, valuation frequency, and portfolio volatility.

The framework is subsequently extended to AUM fee arrangements, establishing a direct relationship between fee revenue and average invested capital through time. Numerical examples illustrate both the convergence and divergence of the major return measures under alternative cash-flow scenarios.

The principal contribution of this paper is the development of a unified continuous-time interpretation of portfolio return measurement. By identifying average invested capital as a common underlying quantity, the framework clarifies the mathematical and economic relationships among Time-Weighted Returns, Money-Weighted Returns, Internal Rates of Return, Dietz Return estimators, and AUM fee economics.