Every country in the world is being transformed by fintech

I travel the world a lot and am amazed about the wave of changes technology has introduced into banking. In almost every country I visit, fintech has grown from an ember to a burner, and almost every country is being transformed. From Taiwan to Timbuktu, everything is changing. Therefore, just to give one more example of change (I recently wrote about West Asia and Africa), here’s the lowdown on Kazakhstan (forget Borat).

Between 2019 and 2023, active online banking users in Kazakhstan increased 4.6 times due to technological improvements, regulatory support, high demand, market competition, and greater internet and cashless payment adoption.

Despite banks leading the fintech market, the number of fintech startups in Kazakhstan have surged from around 50 in 2018 to over 200 by 2024. Moreover, fintech dominates venture capital deals in the country, accompanied by a noticeable rise in “bank+fintech startups” partnerships.

Internet and mobile banking dominate the cashless payments and transfers category, accounting for 83% of all cashless payments amount

The transformation of Kazakhstan's payment landscape has been driven by several factors: favourable demographics, growing digital readiness, increased e-commerce, improved banking accessibility, infrastructural 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 about 20 million, with a median age of 30 years. According to the World Bank, 62% of its population is aged between 15 and 64. This youthful demographic is more tech-savvy and open to digital payment methods, aiding the adoption of non-cash payments.

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

Source: Rise Research

I guess the key message here is to remember that, in a country which has not yet matured or transformed in its fintech journey, you could just copy what people are doing in other countries and introduce this to your domestic economy. Rocket Internet SE in Germany did this with Amazon and such like; Alibaba did this with Amazon and such like; PayTM did this with Alipay and such like.

There are huge opportunities to transform everything with technology and, if you are in a country where no one has yet attacked the traditional ways of doing things, get out there and do something amazing.