Kazakhstan’s largest MFI, KMF, has received approval to convert into a second-tier bank

KMF, Kazakhstan’s largest microfinance organization and the leading player in the country’s microcredit market, is preparing to enter the top tier of the banking sector. The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market has granted KMF approval for voluntary reorganization through conversion into a second-tier bank. This marks the company’s transition from microfinance organization status to that of a full-fledged bank.

Based on its current financial performance, the future KMF Bank could become one of the major participants in Kazakhstan’s banking market. Founded in 1997, the company is Kazakhstan’s largest microfinance organization, accounting for more than 20% of the microcredit market. With assets of KZT 336.3 billion and a loan portfolio of KZT 284.5 billion, KMF is demonstrating steady growth and supporting small and medium-sized businesses through an extensive nationwide network of 17 branches and 122 offices.

Obtaining approval to convert into a second-tier bank is the result of our team’s efforts and constructive cooperation with the regulator. We are confident that this step will strengthen our position in Kazakhstan’s financial market and enable us to offer our customers even higher-quality and more innovative solutions. Our mission remains unchanged: to support small and medium-sized businesses while continuing to focus on rural communities by providing accessible financial services that help them grow and develop.

Shalkar Amangosovich Zhusupov

Chairman of the Management Board of JSC “MFO KMF”

Preparations for the large-scale transformation began as early as 2023. One of the key stages was the implementation of the Colvir core banking system at KMF. Colvir’s products reflect the company’s deep expertise in banking and fintech. This technological foundation provides KMF with the solutions needed for further growth and expansion of its range of services.

Understanding the significance and responsibility of this step for KMF, we sincerely congratulate our colleagues. For 25 years, we have been working with second-tier banks in Kazakhstan, participating in their digital transformation and modernization projects. At the same time, we also help postal organizations and microfinance companies integrate into the fintech market on an equal footing with banks. KMF’s new status opens up exciting horizons and growth opportunities, while also bringing new responsibilities. As a technology partner and participant in digital transformation projects, we are ready to share them.

Denis Yudin

Director of the Business Development Department

KMF’s transformation from an MFI into a bank is another step in implementing Kazakhstan’s state program to increase competition in the banking sector. It also demonstrates how modern Colvir fintech solutions help financial institutions scale their businesses successfully and offer new opportunities to customers. Colvir congratulates KMF on receiving the approval and confirms its readiness to support the company with technology and expertise at this new stage of development.

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