Kazakhstan's Banking Sector Embraces Open Structure
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A modernized financial landscape
In the heart of Central Asia, Kazakhstan is embracing a digital revolution, and open banking stands at its forefront. In a laid-back interview with The Astana Times, Binur Zhalenov, a digital powerhouse at the National Bank of Kazakhstan, shares fresh insights about the future of the nation's financial ecosystem, emphasizing the indispensable role of open banking and artificial intelligence.
Image credit: The Astana Times
Opening the gates to progressive finance
Open banking paves the way for a seamless exchange of financial information between multiple financial institutions and third-party providers – all with your blessings. Secure access is made possible through Open APIs.
Across the globe, approximately 100 countries are exploring open banking, including Kazakhstan, driven by the ambition to construct a Digital National Bank.
Cornerstones of change
Adopting a strategy introduced in 2024, the Digital National Bank is designed to establish a comprehensive ecosystem centered around its central banking and supervisory functions. It consists of five primary pillars:
- Building a national digital financial infrastructure
- Implementing advanced supervisory technology supported by AI and machine learning
- Fostering a data-driven central bank, with a primary focus on data collection, analysis, and decision-making
- Internal digital transformation and the embracement of agile practices
- Promoting open banking and the national digital currency, "Digital Tenge"
Zhalenov introduced the concept of the national digital financial infrastructure to the government in a recent presentation.
Unleashing the power of Digital Tenge
The Digital Tenge, launched in 2023, is a significant component of the national digital financial infrastructure. Cashless payments have become the norm in Kazakhstan, with digital transactions accounting for around 86% of all transactions.
The supportive regulation and interbank infrastructure cultivate competition in the market, driving innovation and giving customers better options for their banking needs.
A digital thoroughfare
Zhalenov likened the national digital financial infrastructure to a network of roads connecting banks, allowing money to flow freely through "payment rails," including card payments, peer-to-peer transfers, and QR codes. The National Bank is responsible for constructing the infrastructure for each type.
Empowering consumers
The ultimate goal is to give consumers more control over their finances by simplifying the process of transferring money between banks. participating institutions in the financial ecosystem.
"We aim to create a market where consumers dictate what banks should do, not the other way around," Zhalenov stated.
Open banking explored
Zhalenov's team's approach to open banking centers on three components: interbank payments, QR payments, and account aggregation. As of 2025, Kazakhstan is pushing forward with a comprehensive open banking framework, complete with broader functionality and more integrated digital interactions.
In the coming months, the nation will see the full launch of peer-to-peer mobile number transfers and the introduction of QR payments.
Safeguarding privacy
As the digital era unfolds, concerns about data privacy remain prevalent. To ensure protection, the National Bank relies on stricter regulation and advanced technology.
The government is currently in the process of drafting a new banking law with a dedicated chapter on data privacy and protection.
Countering fraud
Fraud also presents a challenge in Kazakhstan's financial sector. The National Bank launched the Anti-Fraud Center in 2024, partnering with banks and law enforcement agencies, to fight fraudulent activities more effectively.
Based on an information-sharing system, the center provides a shared fraud-alert network linking the anti-fraud infrastructure of individual banks into a unified system, helping minimize financial losses.
AI and the future of fintech
Artificial intelligence is revolutionizing various sectors, and fintech is no exception. Zhalenov shared that the National Bank is considering 55 possible use cases for AI, ranging from AI-powered chatbots to sophisticated tools for capital flow monitoring, compliance, and fraud prevention.
Stay tuned for the full interview with Binur Zhalenov coming soon on The Astana Times YouTube channel.
[1] AIFC grows amidst digitization efforts
[2] National Bank of Kazakhstan develops standards for modernizing payment systems
[3] New banking law drafted to address data privacy and protection concerns
[4] Digital Tenge becomes the backbone of Kazakhstan's CBDC and digital infrastructure
- In Kazakhstan, the National Bank's digital powerhouse, Binur Zhalenov, discusses the future of the nation's financial ecosystem in an interview with The Astana Times, highlighting the significant role of open banking and artificial intelligence in the year 2025.
- The Digital National Bank, a comprehensive ecosystem focused on central banking and supervisory functions, was introduced in a strategy in 2024, with five primary pillars: building a national digital financial infrastructure, adopting advanced supervisory technology, fostering a data-driven central bank, internal digital transformation, and promoting open banking and the national digital currency, "Digital Tenge."
- The Digital Tenge, launched in 2023, is a key component of the national digital financial infrastructure and has made cashless payments the norm, with digital transactions accounting for around 86% of all transactions in Kazakhstan.
- The National Bank's approach to open banking includes interbank payments, QR payments, and account aggregation, with a comprehensive open banking framework being pushed forward in 2025, including the full launch of peer-to-peer mobile number transfers and the introduction of QR payments.
- To ensure data privacy and protect against fraudulent activities in the digital era, the National Bank relies on stricter regulation and advanced technology, and is currently drafting a new banking law with a dedicated chapter on data privacy and protection, and has already launched the Anti-Fraud Center in 2024 to fight fraudulent activities more effectively.
