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2023: Top 6 fintech trends in Kazakhstan named
The financial technology market in Kazakhstan is one of the fastest growing in Asia, which is facilitated by the active use of digital payment services by local residents. This is stated in a study by Finextra, the results of which were released on September 6, 2023.
Analysts note that several factors contribute to the development of the fintech industry in Kazakhstan. In particular, the country benefits from a favorable business environment and reliable banking infrastructure. In addition, a high level of Internet access penetration has been achieved - more than 90%. At the same time, large organizations, including companies from the telecommunications sector, are experimenting with the development and implementation of new products and services. Overall, Finextra highlights six key fintech trends in Kazakhstan.
1. Explosive growth in digital payments and e-commerce
The rapid expansion of this sector is due to technological advances, changes in legislation, as well as increased market competition and the demand for services. According to estimates, the volume of non-cash transactions in Kazakhstan increased from $5 billion in 2017 to $158 billion in 2022. Thus, the CAGR (compound percentage CAGR) during the specified period was 98%. Companies are actively implementing POS terminals to adapt to changing consumer behavior. In 2017, 108 thousand such devices for accepting plastic cards for payment operated in the country, and in 2023 their number increased to 831 thousand.
2. Open banking
The concept provides for the use of open APIs in the financial sphere. Third-party developers are able to create services and applications for financial institutions. Open banking allows you to organize an effective exchange of data about the client with his consent and form personal offers for him. Factors such as cross-industry integration, digitalization of public services and open data initiatives are accelerating digital transformation in the financial market.
3. Ecosystem and Super Application Development
Kazakhstan has a high level of introduction of mobile banking (86%), which contributes to the development of various ecosystems. They offer a range of services through a single app, combining financial and non-bank services such as online payments, e-commerce, investment, insurance and lifestyle.
4. Digital SMBs
Kazakh companies are increasingly using digital channels to promote their products and services. At the same time, supporting information related to inventory management and customer feedback allows banks to make more informed lending decisions, thereby reducing possible risks.
5. Democratization of the capital market
Against the background of legislative changes and technological achievements in Kazakhstan, sustainable growth is demonstrated by digital trade systems and Wealthtech platforms - digital solutions that help customers manage their investments in an efficient and affordable way. Investment mobile applications have democratized access to the stock market, making it easier to organize remote cooperation through biometric identification services.
6. Digital tenge
The National Bank of Kazakhstan is actively developing digital currency: this initiative is aimed at providing a new payment option. Various methods of transactions are provided - via NFC, using QR codes, biometric data, etc. Digital tenge will be issued in the form of tokens.[1]
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