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How technology and reforms are letting more people in Kazakhstan grow wealth

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Retail investing has exploded in global popularity in recent years, with retail investors expected to account for 61% of global assets under management by 2030, up from 52% in 2021. The past few years have also seen headline news made by global retail investors, from the ‘meme stock’ craze to recent rushes into stocks such as Reddit and Nvidia.

While of course not risk free, broadening access to investing to everyday investors and savers offers a route to wealth creation, and increases liquidity and sources of capital for companies.

This global trend is well-covered and understood – but did you know that recent reforms and technological innovation is also opening the door to retail investors in Kazakhstan?

Reform agenda

Beginning in 2020, Kazakhstan has undertaken substantial legislative reform to democratize its capital markets, establishing the Astana International Financial Center (AIFC) and Astana International Exchange to provide new platforms for investment along with a host of other changes.

In 2023, pensions were liberalised to allow retirement savers more control over where their pensions are invested.

All told, the raft of reforms have seen the rapid expansion of retail investing in Kazakhstan, with the number of retail investor accounts growing almost fivefold from 2019 to 2022.

Technology as an enabler

Reforms lay the groundwork, but it’s technology that can capitalize on this and truly expand access to retail investing across previously underserved markets.

Just as in global markets, mobile app trading platforms have significantly driven the growth of retail investing in Kazakhstan.

Jusan Invest, a subsidiary of Jusan Bank and part of the Jusan super app ecosystem, is one of the most popular online trading platforms in the country. By the end of 2023, the platform had over 1m open brokerage accounts, the largest of any one platform in Kazakhstan and over 44% of brokerage accounts on the market.

Since the inception of its trading platform, the focus has been on ease of use, speed of transactions, and low and transparent fees, to open access to investment in global stocks and financial instruments as well as Kazakh-listed shares.

The platform also integrates financial and investing education, providing resources to those new to the world of investing to learn what’s needed to manage risk and understand the processes involved.

A tool for growth

Investment is both a tool for investors to grow wealth, and for companies to tap new sources of capital to grow and innovate. Enabling retail investing fosters better growth for Kazakhstan, and lets more and more people share in the benefits this growth creates.

 

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