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Kazakhstan’sdigital banking sector has seen extraordinary growth in recentyears, with near-universal adoption of online banking, a surge indigital transactions, and rapid development in the fintechindustry, said Nariman Mukushev, Deputy CEO and Member of theManagement Board of Kazakhstan’s Halyk Bank, in an exclusiveinterview with . "The number of active online banking users in Kazakhstan hasrisen from 5 million in 2019 to 23.1 million in 2023, thanks totechnological advancements and regulatory support," Mukushev said.
He highlighted that the proportion of the population using onlinebanking has increased from 25% in 2018 to nearly 100% in 2024,showcasing the widespread adoption of digital services. Digital payment volumes have also skyrocketed. "Digitaltransactions now account for 89% of all transactions, up from just7% in 2014," Mukushev noted.
The per capita value of digitaltransactions has surged from approximately $20 in 2014 to $13,800in 2023, underscoring the rapid evolution of financial habits inthe country. Public service digitization has further accelerated thistransformation, with over 90% of Kazakhstan’s economically activepopulation using the eGov platform to access governmentservices. Halyk Bank has played a key role in this digital shift.
"AtHalyk, the average time to open a bank account online is less thanthree minutes, and online lending approvals take about two minutes.This efficiency has earned us a loyal client base and consistentgrowth in active users of both our consumer SuperApp and ourcommercial OnlineBank," Mukushev explained. As Kazakhstan’s largest financial institution, Halyk Bank isdeeply integrated into the economy.
"We finance nearly 50% of thecountry’s real economy through corporate lending and facilitatepayments amounting to 83% of GDP," Mukushev said. "By supportingbusinesses, infrastructure, and cross-border trade, Halyk ensuresthat Kazakhstan’s growth story continues." Mukushev also reflected on the country's economic resilience,noting that GDP growth reached 5.
1% in 2023, recovering stronglyfrom the pandemic’s impacts. Looking ahead, he expressed optimismabout Kazakhstan’s prospects. "We are optimistic about the upcoming year, with continuedeconomic growth driven by key industries and government initiativesaimed at diversifying the economy.
As global investors increasinglyturn to emerging markets, both Halyk and Kazakhstan arewell-positioned to benefit," Mukushev said. He further noted that Halyk Bank continues to demonstrate strongfundamentals, blending disciplined risk management withcutting-edge technology to drive growth and profitability. Mukushev highlighted that the bank's credit ratings reflect itsrobust position in the market.
"We combine disciplined riskmanagement with advanced technology to ensure strong fundamentals,"he said, noting that Halyk Bank holds the highest credit ratingsamong privately-owned banks in Kazakhstan—Moody’s Baa1, Fitch BBB-,and S&P BB+. He also pointed out the bank's solidprofitability, with a three-year average Return on Average Assets(ROAA) of 4.4% and Return on Average Equity (ROAE) of 31.
5%,underscoring its financial strength. "Our approach exemplifies the principle that Kazakhstan’ssuccess is Halyk’s success: by remaining a reliable partner for ourcustomers, we foster financial stability and growth opportunitiesfor businesses and individuals alike," Mukushev added. Halyk Bank's commitment to its shareholders is evident in itsdividend policy.
Over the past five years, the bank has paid out anaverage of 48% of its net profit to shareholders, offeringinvestors both strong returns and growth potential. Mukushevexplained, "We believe that Halyk Bank offers investors the dualadvantage of being both a growth stock and one that offersindustry-leading returns through dividends." The bank's impressive financial performance continued in 3Q2024,with net income rising by 53.
7% compared to the same period lastyear, reaching 259.7 billion Kazakh tenge (approximately $558million). This growth is attributed to strong performance indigital banking and fintech innovations.
"Our interest income roseby 31.5%, contributing to an impressive 7.3% net interest margin,"Mukushev noted.
Looking ahead, Halyk Bank’s strategic vision is focused onexpanding its digital ecosystem to meet the evolving needs of bothretail and corporate customers. "We are leveraging AI and otheradvanced technologies to improve operational efficiency andcustomer satisfaction," Mukushev said, emphasizing the bank’scommitment to staying at the forefront of the digitaltransformation in banking. Regionally, Halyk is focusing on expanding its presence inUzbekistan and Georgia, reinforcing its role in fostering regionaleconomic ties.
"Our focus on Uzbekistan and Georgia underscores ourcommitment to exploring new growth avenues in the region," Mukushevexplained. Domestically, the bank plans to deepen its engagementwith small and medium-sized enterprises (SMEs) and retail clientsto ensure that all sectors of Kazakhstan’s economy benefit fromHalyk’s innovative services and financial expertise. Moreover, Halyk Bank continues to redefine the digital bankinglandscape, offering innovative solutions that integrate financewith everyday life.
"For our retail customers, the Halyk SuperApp epitomizes ourvision of an all-encompassing ecosystem, enabling customers tomanage everything from banking and government services to educationand entertainment, all in one place," Mukushev explained. "Thisseamless integration not only enhances convenience but also deepenscustomer relationships, making Halyk an indispensable partner intheir lives". The success of this approach is evident in user engagementmetrics.
"Our monthly active users were up by 11% year-on-year inthe third quarter of 2024, and daily active users rose by 21.1%. Wecontinue to see rapid adoption of our technology," he noted, addingthat the platform’s speed and simplicity—allowing users to onboarddigitally in under a minute—resonate with Kazakhstan’s tech-savvypopulation.
Halyk Bank has built its digital platform from the ground up,avoiding the limitations of legacy systems and achieving a level offlexibility and efficiency that enables rapid deployment of newservices. "Our platform seamlessly integrates lifestyle andbusiness services, enhancing user convenience. This adaptabilityensures the bank remains competitive in a fast-evolving digitallandscape," Mukushev said.
The bank’s focus on blending international best practices withcutting-edge technology has positioned Kazakhstan as a globalleader in banking sophistication. "Our strategy to combineinternational best practices with state-of-the-art technology hasmade Kazakhstan a leader in banking sophistication. This advantagepositions Halyk as a model for other developing economies,demonstrating how a forward-looking approach can leapfrogtraditional banking limitations," Nariman Mukushev concluded.
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