«Freedom Bank issued mortgages to Kazakhstanis worth $1.2 billion» — Turlov

In the four years since the launch of digital mortgages, Freedom Bank has provided 33,500 loans to Kazakhstanis totaling $1.2 billion, said the founder and CEO of Freedom Holding Corp. Timur Turlov at a government meeting.

«Our product, digital mortgage, allows you to apply for a housing loan without visiting a bank. All stages, from filling out the application to signing the contract, are completed remotely. Thanks to integration with 34 government databases, automation of many processes and artificial intelligence that analyzes the borrower’s data and makes a decision in the shortest possible time, we were able to speed up the mortgage issuance process from 14 days to 24 hours. We have received almost 2 million applications, and more than 40 applications are received every hour. A total of 33,500 loans worth $1.2 billion were issued,» Turlov said.

He paid special attention to the reduction in the cost of processing applications, which was achieved through the digitalization of processes. Currently, the figure for Freedom Bank is about $220, while in the United States it almost reaches $10.5 thousand.

Freedom Bank launched a digital mortgage in the summer of 2021, becoming the first bank in Kazakhstan to provide such a product. The client is only required to visit a notary public, to whose digital account.

Turlov also told Prime Minister Olzhas Bektenov and members of the government about other types of loans available to Freedom Bank customers online. Among them are car loans, «loans for LLPs and sole proprietorships. The approval process now takes 12 hours, down from seven days. 21,000 Kazakhstanis have already used the product, and the total amount of funds provided has exceeded 366 billion tenge.

«In total, more than 1 million applications were submitted, 51 every hour. This is a process that would not have been possible without our digital car insurance and a well-organized system to combat insurance fraud,» Turlov said.

The head of the bank called digital credit for LLP one of the key products of the organization. Due to digitalization, the process takes one day, the minimum possible time is 12 minutes. The maximum loan amount is 100 million tenge, the term is from three to 12 months.

Individual entrepreneurs can get a loan in 24 hours. Freedom Bank has already received more than 860,000 applications from sole proprietors, 30,000 of which totaling $443 million have been approved.

«In fact, this is also a unique process in its own way, because in the world it is precisely lending to small entrepreneurs that is considered a very big problem that is very expensive for banks, so banks do not like to do this very much. This area is more developed in Kazakhstan than in most other countries. The key stop factor, in particular, for our bank is often the lack of resources, because the potential of the pipeline significantly exceeds our ability to offer funds,» concluded the founder of Freedom Holding Corp.