Fintech

Kazakhstan’s fintech sector is booming

Published

10 months ago

5 July, 2024

Kazakhstan is becoming a leader in cashless transactions, supported by strong competition and a favorable regulatory environment.

According to a major new study by RISE Research, in collaboration with the National Payment Corporation of Kazakhstan, Mastercard, and Tarlan Payments, the number of fintech startups in Kazakhstan has quadrupled over the past five years.

The study also reveals that the Central Asian country is now a regional leader in digital finance, with the share of cashless payments reaching 89% as of May this year.

In fact, according to Binur Zhalenov, president of the National Payment Corporation of Kazakhstan, the country is a world leader in the development of cashless transactions.

“Competition pushes the market to improve services and introduce innovations,” he says. “Transparent ‘rules of the game’ and fair access to digital financial infrastructure, overseen by Kazakhstan’s National Payment Corporation, are key to fostering this competitive environment.

“We intend to continue to support and develop innovative solutions to ensure that end consumers benefit from better, cheaper and more convenient financial services.”

The growth of the fintech sector is supported by the advancement of the country’s venture capital sector. Over the past five years, the number of fintech startups in Kazakhstan has reached 200, cementing the country’s position as a leader in attracting venture capital investments.

In 2023, the sector accounted for 40 percent of all venture capital funding in Kazakhstan.

A young and technological country

The transformation of the payments landscape in Kazakhstan has been driven by several factors: favorable demographics, growing digital readiness, increasing e-commerce, improved banking accessibility, infrastructure developments (such as local payment systems and QR codes), the launch of major digital wallets (Apple Pay, Google Pay), and government initiatives.

Kazakhstan has a young population of around 20 million, with a median age of 30. According to the World Bank, 62 percent of its population is between the ages of 15 and 64. This young demographic is more tech-savvy and open to digital payment methods, which drives the adoption of non-cash payments.

The rise of e-commerce in Kazakhstan has also contributed significantly to the growth of cashless payments. As more and more people shop online, they prefer digital payment methods. In 2023, e-commerce accounted for 12.6 percent of all retail trade in Kazakhstan, according to PwC. This growth trend is expected to continue, further driving the digitization of payments.

However, the banking sector remains the main driver of the development of financial and payment technologies in the country. Meanwhile, the number of non-bank fintech startups has quadrupled in the past five years.

More specialized areas have emerged, including cryptocurrency exchanges such as AtaxeKYC companies including Verigram AND AlaqanAML, anti-fraud and digital lending, which indicate the expansion and deepening of the fintech ecosystem and the growing sophistication of market participants.

“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 and the readiness of local players to enter the international arena. I believe that fintech companies in Kazakhstan have all the possibilities and opportunities to achieve this goal,” says Andrey Sedenko, CEO of Tarlan Payments.

The maturity of the Kazakh fintech market is also evidenced by a key trend in recent years: the synergy between traditional banks and startups, including those in the fintech, e-commerce and other sectors.

Stay ahead

In these collaborations, banks act as key partners and investors. The development of the market throughout its history has been accompanied by the active role of regulators. This includes legislative reforms, programs and strategies, as well as the creation of a digital financial infrastructure, all of which have played a key role in stimulating the growth and development of the fintech sector.

However, despite the country’s success in the fintech sector, this is not the time for Kazakhstan to rest on its laurels, suggests Ainur Zhanturina, founder of RISE Research.

“It is crucial for fintech market players to not only observe current trends, but also to actively engage with them, stay ahead of them and dictate the pace of the market,” he says.

“Banks should implement BaaS, collaborate with fintech startups, and integrate govtech and AI tools into their processes.”

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Fintech

Lloyds and Nationwide invest in Scottish fintech AI Aveni

Published

9 months ago

29 July, 2024

FinCrypto Staff

Lloyds and Nationwide invest in Scottish AI fintech Aveni

Lloyds Banking Group and Nationwide have joined an £11m Series A funding round in Scottish artificial intelligence fintech Aveni.

The investment is led by Puma Private Equity with additional participation from Par Equity.

Aveni creates AI products specifically designed to streamline workflows in the financial services industry by analyzing documents and meetings across a range of operational functions, with a focus on financial advisory services and consumer compliance.

The cash injection will help fund the development of a new product, FinLLM, a large-scale language model created specifically for the financial sector in partnership with Lloyds and Nationwide.

Joseph Twigg, CEO of Aveni, explains: “The financial services industry doesn’t need AI models that can quote Shakespeare, it needs AI models that offer transparency, trust and, most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, vetted by financial services experts for specific financial services use cases.

“FinLLM’s goal is to set a new standard for the controlled, responsible and ethical adoption of generative AI, outperforming all other generic models in our selected financial services use cases.”

Robin Scher, head of fintech investment at Lloyds Banking Group, says the development programme offers a “massive opportunity” for the financial services industry by streamlining operations and improving customer experience.

“We look forward to supporting Aveni’s growth as we invest in their vision of developing FinLLM together with partners. Our collaboration aims to establish Aveni as a forerunner in AI adoption in the industry, while maintaining a focus on responsible use and customer centricity,” he said.

Source

Fintech

Fairexpay: Risk consultancy White Matter Advisory acquires 90% stake in fintech Fairexpay

Published

9 months ago

29 July, 2024

FinCrypto Staff

Treasury Risk Consulting Firm White Matter Alert On Monday he announced the acquisition of a 90% stake in the fintech startup Fair payment for an undisclosed amount. The acquisition will help White Matter Advisory expand its portfolio in the area of cross-border remittance and fundraising services, a statement said. White Matter Advisory, which operates under the name SaveDesk (White Matter Advisory India Pvt Ltd), is engaged in the treasury risk advisory business. It oversees funds under management (FUM) totaling $8 billion, offering advisory services to a wide range of clients.

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White Matter Advisory, based in Bangalore, helps companies navigate the complexities of treasury and risk management.

Fairexpay, authorised by the Reserve Bank of India (RBI) under Cohort 2 of the Liberalised Remittance Scheme (LRS) Regulatory Sandbox, boasts features such as best-in-class exchange rates, 24-hour processing times and full security compliance.

“With this acquisition, White Matter Advisory will leverage Fairexpay’s advanced technology platform and regulatory approvals to enhance its services to its clients,” the release reads.

The integration of Fairexpay’s capabilities should provide White Matter Advisory with a competitive advantage in the cross-border remittance and fundraising market, he added.

The release also states that by integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

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Fintech

Rakuten Delays FinTech Business Reorganization to 2025

Published

9 months ago

29 July, 2024

FinCrypto Staff

Rakuten (Japan:4755) has released an update.

Rakuten Group, Inc. and Rakuten Bank, Ltd. announced a delay in the reorganization of Rakuten’s FinTech Business, moving the target date from October 2024 to January 2025. The delay is to allow for a more comprehensive review, taking into account regulatory, shareholder interests and the group’s optimal structure for growth. There are no anticipated changes to Rakuten Bank’s reorganization objectives, structure or listing status outside of the revised timeline.

For more insights on JP:4755 stock, check out TipRanks Stock Analysis Page.

Source

Fintech

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

Published

9 months ago

29 July, 2024

FinCrypto Staff

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

You are reading Entrepreneur India, an international franchise of Entrepreneur Media.

White Matter Advisory, which operates under the name SaveDesk in India, has announced that it is acquiring a 90% stake in fintech startup Fairexpay for an undisclosed amount.

This strategic move aims to strengthen White Matter Advisory’s portfolio in cross-border remittance and fundraising services.

By integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

White Matter Advisory, known for its treasury risk advisory services, manages funds under management (FUM) totaling USD 8 billion.

Founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddy and Piuesh Daga, White Matter Advisory helps companies effectively manage the complexities of treasury and risk management.

The SaveDesk platform offering includes a SaaS-based FX market data platform with real-time feeds for over 100 currencies, bank cost optimization services, customized treasury risk management solutions, and compliance guidance for the Foreign Exchange Management Act (FEMA) and other trade regulations.

Fairexpay is a global aggregation platform offering competitive currency exchange rates from numerous exchange partners worldwide. Catering to both private and corporate customers, Fairexpay provides seamless money transfer solutions for education, travel and immigration, as well as simplifying cross-border payments via API and white-label solutions for businesses. Key features include competitive currency exchange rates, 24-hour processing times, extensive currency coverage of over 30 currencies in more than 200 countries, and secure, RBI-compliant transactions.

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