Kazakhstan is giving global powerhouses a run for their money as the Central Asian country emerges as a leader in the region's fintech evolution, which is making a splash on the global scene as well.
The nation's shift from an economy based primarily around oil to tech-driven innovation is clear—and at the rate the country is going, fintech is shaping up to be its most important sector.
As the country digitally developed in terms of internet access and mobile ownership, it has laid the ground for fintech infrastructure. Over the past six years, the Compound Annual Growth Rate (CAGR) of cashless transactions in Kazakhstan has been a remarkable 48.18%, reaching a staggering $234.12 billion in 2023.
This growth trajectory positions Kazakhstan as a key player in Central Asia's fintech landscape. The country sits strategically between China and Russia yet is keen to foster greater international ties across Europe, the US, and further afield.
In 2023 alone, the Central Asia and Caucasus region witnessed an impressive surge in venture capital deals, totalling over USD 110 million. Kazakhstan honed in on these investments, capturing an impressive 72.7% share with over $80 million in venture capital deals.
Following slowly in second place was Georgia, securing 19.6% of these deals, totalling $21.6 million. And in third place, Uzbekistan taking $6.3 million, accounting for 5.7%.
One of the figures leveraging Kazakhstan's position and leading the charge of the country's increasingly tech-based economy is Timur Turlov, CEO and founder of Freedom Holding Corp., a Kazakhstan-based retail brokerage spanning multiple continents including Central Asia, Europe and the US.
By the age of 36, Turlov's leadership has steered the company to a significant presence on the global stage, with an estimated value of over $3.1 billion—a remarkable figure given how he started the company in 2008 with just $100,000 pooled with his cofounders.
And by no means is Turlov or Freedom slowing down. At year-end 2023, the company's revenue hit a staggering $1.2 billion—an increase of 107% year-over-year.
So, it is no surprise that Turlov is frequently identified as one of Kazakhstan's most successful and interesting business leaders, placed alongside the likes of Alina Aldambergen, Armanzhan Baitassov, and Eldar Sarsenov.
By consolidating his businesses under Freedom Holding Corp., Turlov navigated the company towards a public listing on the Nasdaq in 2019, a notable achievement for a firm from the CIS (Commonwealth of Independent States) region and one that gave it significant clout in the eyes of those in the industry.
Turlov's selection of Kazakhstan as the operational hub reflects both a strategic decision and a personal connection to the region. According to Mr Turlov, Kazakhstan is an excellent platform for the continued development of service offerings and the expansion of its digital business lines.
The recognition that Freedom Finance, the stock brokerage company, has received from the Kazakh Stock Exchange (KASE) serves as a testament to this, winning awards in 2023 for 'market leader' and 'best underwriter.'
Its development of the Freedom24 app, which enables over 500,000 investors worldwide to access capital markets, functions as an online international community—demonstrating a further example of how Freedom Holding Corp. is not only leading Kazakhstan's fintech growth, but bridging East with West whilst it's at it.
And it's not just finance that has captured Turlov's attention; his company has invested more than $100 million in the development of an ecosystem of services, including an insurance company, acquiring a travel booking service, and issuing bonds to create its own telecommunications company.
The Asian Development Bank recently forecasted Kazakhstan's economy to grow by 3.8% in 2024 and 5.3% in 2025. As the Central Asian state continues to grow, Turlov epitomises the nation's transition towards becoming a fintech powerhouse in the heart of Central Asia. To put it simply—watch this space.
