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Kazakhstan’s FinTech Giant – Kaspi Bank

Prove
February 5, 2022

FinTech is a buzzword in developing and developed economies, as seamless technology and banking services are increasingly embedded into the ecosystem. Think of FinTech and the countries that come to mind are the US, UK, Switzerland, and Sweden. We rarely think of Kazakhstan, a landlocked country in Central Asia, when discussing FinTech developments.

Kaspi Bank, an Almaty-based intrepid service provider, is now making waves in the FinTech space following its overwhelming IPO success in 2020. The bank, which offers financial and banking solutions and retail and commercial banking services, was listed on the London Stock Exchange and brought in over $1 billion at its listing. As per reports, Kaspi Bank’s IPO was the second-largest IPO in 2020 and the fourth-largest IPO in Europe. Kaspi Bank’s stocks are now trading at $114.40 per share after opening at $38 per share, post-listing on October 15, 2020. 

In October 2020, Kaspi’s IPO price was set at $33.75, and 25,764,894 shares were on offer, equaling a total offering valued approximately at $870 million. Kaspi was valued at $6.5 billion in London IPO. Following Russia’s investment trend, Kaspi has invested massively in digitalization and FinTech to become the payments solutions provider of choice in Kazakhstan. As the country’s first new technology leader, Kaspi’s IPO provided local investors an opportunity to buy into the ongoing global FinTech revolution.

Overview of Kaspi Bank

Kazakhstan is rarely spoken of in FinTech circles, but Kaspi Bank’s overwhelming success at the IPO, following a false start the previous year, has made the country a potential hotspot for FinTech ventures. The bank is on a mission to empower people by developing innovative products and services for the growing banked populace in the country. The FinTech major is driving engagement by leveraging a three-fold mechanism featuring seamless customer experience, next-generation technology, and big data analytics to fulfill this mission. The bank claims to operate the largest payments, marketplace, and FinTech ecosystem in its home country, developing innovative products and solutions to revolutionize the way people transact, shop, and manage their personal finances.

Kaspi Bank harnesses transformative technology to create a seamless payments experience for its clients and drive customer engagement through optimal services and experiences, thereby ensuring that as a single provider, it meets the financial requirements of Kazakhstan’s population. Since its inception over two decades ago, Kaspi has remained an innovation-driven company with a proven track record of introducing state-of-the-art products and services that keep customers engaged consistently. Indeed, the Kaspi ecosystem has become an integral part of people’s daily lives, especially during the post-pandemic phase when digital transactions have become a mainstay. The bank continues to focus on innovation and technology, keen on propelling its ecosystem to the top position across all ancillary platforms.

The Kaspi ecosystem, made up of solutions across segments such as payments, e-commerce, and FinTech, addresses a variety of daily needs, both online and offline. The ecosystem offers facilities such as funding options for purchase, personal finance management, and the ability to purchase and pay for essential commodities. Focused on resilience, agility, and sustainability in the evolving financial landscape and led by visionary management, Kaspi is primed to remain the one-stop solution for the day-to-day financial requirements of the people of Kazakhstan.

FinTech Powering Solutions

Kaspi owns Super App, Kazakhstan’s most favored mobile application and the base for everything the bank offers its customers across retail and consumer banking. At present, Super App has 10.2 million monthly active users. While the FinTech player is primarily active in its home country, it is now expanding to offer banking solutions to Central Asia’s vast underbanked populace. Even though FinTech banking apps have rapidly proliferated in the region, led by Russia and Ukraine, FinTech-powered Kaspi Bank is a major contender in the segment with its proven record.

Kaspi started its journey as a bank in ex-Soviet Kazakhstan. Now, as a participant in the FinTech revolution in the twenty-first century, it is rapidly emerging as a major service provider for peer-to-peer lending and online marketplaces. In fact, the FinTech provider is the backbone of the Kazakhstan economy, with Super App delivering over 60% of the government COVID relief payments to eligible residents.

Following its successful innings in Kazakhstan and capacity to leverage FinTech during the pandemic, Kaspi made its way into Azerbaijan, owning leading e-commerce platforms for real estate, cars, and used goods. With strong financials and unhindered technology backing, Kaspi is also a significant pull for investors, as indicated by the successful IPO. Uzbekistan is also on the roadmap for the growing company. 

Drawing inspiration from China’s Alipay and WeChat, Kaspi Bank has proved itself as a FinTech player set to dominate the Central Asian market. With customers greatly valuing the bank’s financial freedom and cashback, there is no doubting Kaspi’s popularity in its home country.

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