Kazakhstan’s Fintech Sector Booms Amid Regulatory Support
Kazakhstan has emerged as a leader in cashless transactions, driven by fierce competition and a supportive regulatory environment, according to a new study from RISE Research.
Quadrupling of Fintech Start-Ups
The country has seen a quadrupling of fintech start-ups over the past five years, with 200 companies now operating in the sector. This growth has been fueled by:
- Favorable demographics
- Growing digital readiness
- Increased e-commerce
- Improved banking accessibility
- Government initiatives
Competitive Market Driven by Transparency and Equal Access
Binur Zhalenov, chairman of the National Payment Corporation of Kazakhstan, attributed the country’s success to a competitive market driven by transparent “game rules” and equal access to digital financial infrastructure. He said:
“We intend to continue supporting and developing innovative solutions to ensure that end consumers benefit from better, more economical, and convenient financial services.”
Significant Growth in Specialized Areas
The fintech industry accounted for 40% of all venture capital financing in Kazakhstan last year, solidifying the country’s position as a leader in attracting foreign investment. The sector has also seen significant growth in specialized areas such as:
- Crypto exchanges
- eKYC firms
- Digital lending
International Potential
Andrey Sedenko, CEO of Tarlan Payments, believes that Kazakh fintech companies have every chance to achieve success on the international stage. He said:
“Both international payment systems and local solutions are actively used in this country. This confirms the high level of integration of our market into the global financial ecosystem.”
Need for Innovation and Staying Ahead
However, Ainur Zhanturina, founder of RISE Research, cautioned that Kazakhstan’s fintech sector must continue to innovate and stay ahead of the curve. She said:
“It is crucial for fintech market players not only to observe current trends but also to actively engage with them, stay ahead, and set the pace in the market.”
Recommendations for Achieving Success
To achieve this, Zhanturina recommended that banks implement banking-as-a-service (BaaS) models, collaborate with fintech start-ups, and integrate government technology and artificial intelligence tools into their processes.