Binur Zhalenov, Chairman of the National Payment Corporation of the National Bank of the Republic of Kazakhstan, presented the “Digital Tenge” project. The architecture of the platform allows bank clients to use digital tenge by opening a digital account in the mobile application of the servicing bank. “We will launch digital tenge into retail circulation this year. And we are counting on large-scale development of the platform together with our partners, financial market participants next year,” noted the Chairman of the National Payment Corporation of the National Bank of the Republic of Kazakhstan.
In addition to the service of making payments and transferring money between digital accounts, a feature for using “digital vouchers” is also available. It was implemented jointly with the Almaty Akimat to automate settlements as part of social support measures using smart contract technology.
Participating banks (Halyk Bank, Eurasian Bank, Bank CenterCredit and Altyn Bank), in cooperation with international payment systems, issued digital cards. They allow their holders to make payments and transfers of digital tenge with individuals and legal entities in the usual manner. According to speaker, by 2025 all participants in the financial market will be connected: “We have built a technology that combines existing payment cards with the digital tenge platform. This allows you to pay in digital tenge anywhere in the world, wherever you are, using Apple Pay, Samsung Pay and other devices.”
Another digital project from the state is Open API and Open Banking. An online open data platform through API technology already allows banks to offer innovative products and services. For instance, with the help of one banking application it is already possible to track accounts in all banks participating in the pilot project. Now one can manage this money, monitor transactions and movement of funds, and receive personal analytics. “There will be no need to print transaction statements at bank branches in order to provide them, for example, to visa center, and so on. Insurance companies will be joining the service over time. A person will be able to see what is happening with their money, as well as bank deposits and insurance policies in one application. The concept of open banking is more about the client who gains flexibility in managing their financial data. The customer allows one or another organization to obtain information about their account, transactions, balance,” explained Zhanar Samayeva, managing director of the National Payment Corporation of the National Bank of the Republic of Kazakhstan.
The chairman of the Agency for Regulation and Development of the Financial Market (ARDFM) Madina Abylkassymova informed financial officers about the tightening of supervision by bringing it into line with the Basel principles: “We are developing banks with ecosystems (there are a lot of transactions on all banks’ balance sheets), as well as traditional banking models. Banks own insurance organizations and asset management organizations. Now they are actively investing in fintech companies. We have completed the implementation of 29 principles of the Basel Committee into regulation. This will increase the confidence of foreign investors, the public, and rating agencies in banks.”
In order to raise the level of information security in the financial market, the agency carries out regular control and supervisory activities. During 2023, the ARDFM has conducted 6 inspections based on risk assessments, 14 documentary inspections of financial organizations for compliance with the requirements of the legislation of the Republic of Kazakhstan in the field of information security and risks of information security and technologies. Based on inspection results, 16 written orders were applied to financial market entities in order to eliminate the identified violations.
“The clearing of the banking sector from accumulated stressed assets has been completed. I can even say that those regulatory shortcomings that were present in the 2000s have been studied, appropriate changes in regulation have been made, and a transition to risk-based supervision has been made. The good news is the National Bank and we are doing a lot to introduce innovations in our sector,” concluded the ARDFM executive.
Photos are from open sources.