ASTANA – What are the trends in digital and open banking? How does artificial intelligence (AI) contribute to market development? What sectors need new IT solutions the most? CEO of TipTop Pay Kazakhstan Vladimir Dzhabarov and IT expert Agiis Konkabayeva spoke about the fintech trends in a recent interview with Digital Business IT-focused media outlet on Feb.13.
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Solutions in digital and open banking
Agiis Konkabayeva. Photo credit: Digital Business
In 2023, banks reduced the number of onsite branches and invested in digital infrastructure and mobile apps, transitioning from monolithic systems to microservices. The launch of a digital bank for small and medium-sized enterprises (SMEs) highlighted the shift toward digital solutions. Konkabayeva emphasized that this year, banks will concentrate on SMEs, offering lending, factoring, development of non-financial services and Banking as a Service (BAAS).
The increase in BAAS technology is a trend reshaping the operating models of banks. Open banking is gaining traction, with the National Bank introducing a digital card and account aggregation under the digital tenge framework.
“In 2024, open banking will go beyond the pilot services and consumers will get a new experience in banking services,” said Konkabayeva.
The expert added that banks should implement BAAS, collaborate with fintech startups, and endeavor to integrate artificial intelligence technologies into their processes.
AI focus
Kazakhstan leads Central Asia in AI innovations, with state-level prioritization of AI-based technologies. The Ministry of Energy has devised a plan for gas consumption under AI control. There are also plans to introduce AI services similar to ChatGPT to process requests for public services more effectively, respond to citizens’ requests and process documents around the clock, with universities already launching courses on artificial intelligence.
“We will see the rapid development of AI in the next five years. Many banks are exploring the possibilities of voice assistants based on AI to improve customer service and reduce call center loads. This year, we are likely to see wider use of artificial intelligence in technical support of banks and in evaluating the work of managers,” said Konkabayeva. Implementing AI simplifies work and removes routine tasks from the team while maintaining human oversight.
Customer-Centric Payment Methods
Vladimir Dzhabarov. Photo credit: Digital Business
“Time when the seller directed the terms of payments have passed — today, payment methods must be convenient for the customer,” said Dzhabarov.
Businesses are leveraging payment opportunities including recurring payments, subscription payments, card memorization and payment links. There is an increase in tokenized payments through Apple Pay, Google Pay, and Samsung Pay services, allowing payments via fingerprint and FaceID.
Dzhabarov also noted the development of BNPL tools (buy-now-pay-later) and new instruments such as using a phone as a payment terminal as trends for 2024.
