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Digital Payments

Tokayev Criticizes Banks Over Slow Adoption of Kazakhstan’s Digital Financial Infrastructure

Kazakhstan’s President Kassym-Jomart Tokayev has criticized the country’s banks for their slow adoption of state-developed digital financial infrastructure. He made the remarks during a meeting on the implementation of the Digital Qazaqstan project. During the meeting, the heads of ministries and government agencies presented reports on the rollout of digital solutions in public administration and the economy. In his comments, the president stressed the need for more active deployment of artificial intelligence in industry, as well as progress in developing digital payment infrastructure. According to Tokayev, the National Bank has already created a digital financial ecosystem that includes interbank QR payments and transfers, as well as settlements using the digital tenge. “This significantly reduces costs by shortening the chain of payment intermediaries. The requirement for all banks to connect to this infrastructure is enshrined in law, but the largest banks are delaying compliance,” the president said. Since September 2025, a unified QR code system for interbank payments has been operating in Kazakhstan. The service allows users to pay for goods and services through mobile banking applications. Customers simply scan a QR code at a merchant’s terminal and confirm the transaction. Initially, the service was available to clients of three banks. At present, 15 banks have signed participation agreements, although only six have completed technical integration with the system. The remaining institutions are required to connect by July 18, 2026. Speaking in November 2025, National Bank Chairman Timur Suleimenov said the rollout had been slowed by both technical and market issues, adding that large financial ecosystems were reluctant to share payment traffic. He also described the digital tenge as a tool for transparency and control in public spending rather than a competitor to commercial banks’ own payment products. Tokayev also emphasized that the widespread adoption of artificial intelligence technologies in the real economy is a strategic priority. He linked this goal to the country’s technological sovereignty and called for accelerating the digitalization of the state apparatus. According to the president, more than 90% of public services in Kazakhstan have already been moved online, yet many government information systems remain insufficiently integrated. “Speed and quality must be the priority at every stage. It is data that needs to flow, not people,” Tokayev said. He added that digital transformation is incompatible with outdated bureaucratic practices. “Digitalization and bureaucracy are as incompatible as ice and fire. We cannot force modern technologies to fit into old administrative models,” the president stated. Tokayev also expressed concern about the pace of Kazakhstan’s digital transformation. “I read news about the development of artificial intelligence; it is advancing so rapidly that I am becoming anxious about Kazakhstan’s digital future. It seems to me that the digitalization process is slowing down,” he noted. The Times of Central Asia previously reported that the adoption of artificial intelligence technologies in the financial sector across Central Asia remains uneven, although Kazakhstan is currently regarded as the regional leader.

Education

Opinion: Examination Reform – An Effective Assessment Tool in the Age of Artificial Intelligence

Kazakhstan’s decision to reform and expand assessment beyond the Unified National Testing (UNT) system marks a significant shift in how the country identifies talent and prepares young people for a rapidly changing world. Recently reported by Times Higher Education, the reform recognizes a growing reality: traditional, memory-based exams are no longer enough in an era shaped by artificial intelligence, automation and constant technological change. For more than two decades, the UNT has provided a standardized and transparent route into higher education. It brought clarity and fairness at scale, and for that, it deserves credit. Yet its core limitation has become increasingly clear. By focusing largely on the reproduction of subject knowledge, it leaves little room for students to demonstrate analytical thinking, problem-solving ability, or the capacity to work across disciplines. In practice, it rewards exam technique and memorization over deeper understanding. This matters because the skills now demanded of graduates are changing fast. Across the global labor market, employers are placing greater value on adaptability, technical literacy, and the ability to apply knowledge in real-world settings. International organizations have been clear on this point. The OECD’s Future of Education and Skills 2030 framework argues that education systems must develop cross-cutting competencies such as critical thinking, creativity, collaboration, and self-direction. The World Economic Forum has made a similar case, urging a move away from static, theoretical learning towards transferable, future-facing skills. As artificial intelligence becomes embedded across industries, assessment models need to keep pace. Evaluating what a student can recall under exam conditions is no longer a reliable proxy for how they will perform in complex, technology-rich environments. Research increasingly shows that standardized tests capture only part of an applicant’s potential, a point widely discussed in international higher education policy debates and assessments such as the OECD’s Programme for International Student Assessment. They can also reinforce socio-economic inequalities, as access to preparation resources often matters as much as ability. The result is a system that measures how well students survive exams, rather than how well they think. Kazakhstan’s new modular examination model is designed to respond directly to these challenges. Instead of testing knowledge in isolation, it aims to assess functional literacy, logic, analytical reasoning and critical thinking alongside mastery of the school curriculum. This more practice-oriented approach offers a fuller picture of a student’s readiness for higher education and, ultimately, for professional life. I see this shift every day in my work within Kazakhstan’s education ecosystem. The new test does not stand alone; it forms part of a wider effort to build coherence across schools, universities, policymakers and philanthropic organizations. Real, lasting change depends on alignment around shared goals, rather than on pilots or isolated initiatives. At the NNEF Public Foundation, established by the renowned educator Dinara Kulibayeva, this principle has guided our work for nearly three decades. Through a network of affiliated schools, universities and developmental programs - including Astana IT University, which I am proud to lead - we have helped young people across Kazakhstan learn, grow and realize their potential. Thousands...

Startups

Kazakh Startup Defect AI Accepted into StartX Accelerator at Stanford University

Kazakhstan-based startup Defect AI, part of the Astana Hub ecosystem, has been selected for the spring 2026 cohort of the StartX accelerator at Stanford University. The program is considered one of the most competitive in Silicon Valley and brings together promising technology projects from around the world. The platform developed by the startup uses artificial intelligence to analyze medical documentation. According to the developers, the algorithm can reduce the time spent on manual document verification by up to 95%. The service is designed to help medical organizations comply with regulatory requirements and standards while reducing the administrative burden on doctors. The product is positioned as an AI assistant that structures documentation and processes large volumes of medical data without requiring additional staff. The startup operates internationally under the brand name Rette, derived from the Kazakh word “retteu,” meaning “to put in order.” Experience gained from implementing the technology in Kazakhstan allowed the team to test the product in a real healthcare system. However, the company’s main strategic focus is now shifting to the U.S. market. The Defect AI team operates globally, with key employees based in Kazakhstan, the U.S., Japan, the United Kingdom, and Germany. The team includes specialists with experience at Meta, Google, and Microsoft. Through its participation in the StartX program, the startup has formed an advisory board that includes practicing doctors and medical technology investors. Co-founder Sanzhar Myrzagalym said the road to the accelerator was a long one. The team applied four times before being accepted into the program.

AI Regulation

Kazakhstan Adopts Pragmatic AI Regulation in Financial Sector

As of early 2026, the global financial market faces a strategic choice: impose tighter restrictions on artificial intelligence or allow the technology to evolve within existing regulatory frameworks. While the European Union has opted for comprehensive regulation, Kazakhstan has adopted a more pragmatic approach. According to the National Bank of Kazakhstan, approximately 75% of the country’s banks already use AI technologies— a share that has risen steadily over the past year — and 88% plan to expand their use. This indicates that AI integration is no longer experimental but systemic within the financial sector. Banks are increasingly deploying AI in credit underwriting, fraud detection, and anti-money-laundering transaction screening Madina Abylkasymova, Chair of the Agency for Regulation and Development of the Financial Market, articulated the principle of technological neutrality as early as 2025: the regulator does not intend to introduce artificial constraints until uniform global standards for AI are established. In her view, existing regulatory frameworks remain sufficient. Cybersecurity requirements, data protection standards, and risk management rules continue to apply regardless of whether decisions are made by humans or algorithms. Accountability and oversight remain unchanged. Infrastructure Before Regulation At the same time, the market faces significant structural barriers. These include a shortage of specialists at the intersection of finance and data science, the absence of unified data standards, and the high cost of computing infrastructure. The introduction of additional “European-style” restrictions could disproportionately burden smaller market participants and potentially force them out of the sector. Over the past twelve months, discussions have shifted from pilot experimentation to operational scaling across core banking functions. Some market participants have privately expressed concern that regulatory lag could eventually create supervisory blind spots as AI models grow more complex. Recognizing the high cost of entering the AI ecosystem, the state is assuming an infrastructural role. Timur Suleimenov, Governor of the National Bank of Kazakhstan, operating within the broader digital modernization agenda supported by President Kassym-Jomart Tokayev has outlined a strategic objective: to establish secure and scalable infrastructure to support AI development in the financial sector. This includes the launch of domestic data centers and the expansion of partnerships with global technology companies. The stated goal is to strengthen technological sovereignty and ensure the protection of citizens’ personal data. In practical terms, the regulator aims to create a sovereign “sandbox” in which fintech companies can test algorithms without transferring sensitive information to foreign servers. Supervisory Modernization The rapid expansion of AI also requires a transformation of supervisory practices. Currently, 39% of financial organizations in Kazakhstan use neural networks in some capacity. Over the past year, the number of companies that have progressed from pilot projects to partial implementation has nearly doubled. International institutions, including the Bank for International Settlements and the International Monetary Fund, argue that AI does not generate fundamentally new categories of risk. Rather, it accelerates and amplifies existing risks, credit, market, and operational. This suggests that regulators do not need to rewrite foundational rules but must enhance the speed, scale, and depth of...

Finance

Digital Inequality in Central Asia: Who Is Winning the AI Race in Finance?

AI in Central Asia’s financial sector is no longer a fashionable add-on. It has become a dividing line between leaders and laggards. A comprehensive report by the National Bank of Kazakhstan and the Fintech AI Center highlights a stark reality: while some institutions are building sovereign data centers, others are still attempting to automate basic document management processes. Kazakhstan is setting the pace. In his introduction to the report, Timur Suleimenov, Governor of the National Bank of Kazakhstan, echoes President Tokayev’s digital modernization agenda, writing: “Artificial intelligence is rapidly becoming a new paradigm for the development of the national economy… Our country faces the task of not only avoiding being left on the periphery of the global technological trend, but also of using its potential to accelerate economic modernization.” The regional AI race in finance is effectively underway, and the findings reveal deep digital inequality. The Balance of Power: Leaders and Followers A review of AI implementation across the region shows a pronounced technological divide. Kazakhstan remains the undisputed leader. Its banking sector has moved beyond experimental pilot projects. According to the report, AI is most actively deployed in the development of new products (14% of financial institutions) and marketing (13%), where neural networks enable hyper-personalized offerings. A further 10% of institutions use AI in operational activities and compliance. Elsewhere in Central Asia, governments are developing ambitious strategies, but implementation in the financial sector remains limited. Kyrgyzstan plans to launch a National AI Platform under its Digital Transformation Concept for 2024-2028. However, most of the country’s banks remain at the pilot or early implementation stage. Current AI applications focus primarily on decision-making optimization and advertising materials rather than complex financial operations. Tajikistan has positioned itself prominently at the policy level. It adopted an AI Development Strategy through 2040, the region’s first long-term framework, and initiated a United Nations General Assembly resolution on AI for Central Asia in July 2025. Yet in practice, the country’s financial market is dominated by microfinance organizations (MFOs), which are cautious in adopting advanced technologies. Their AI use is largely confined to risk management and documentation, while automation, software development, and data processing lag behind. Only 7% of institutions apply AI in financial consulting and customer support. Uzbekistan has taken a different route, prioritizing international and regional partnerships. In October 2024, the government approved its AI Development Strategy through 2030. Rather than building infrastructure independently, Tashkent is partnering with global technology providers. The state is working with Huawei to develop physical AI infrastructure and deploy ready-made industry solutions. At the same time, Uzbekistan is strengthening its academic capacity, including investments in high-performance computing for Inha University in Tashkent. Regional integration is also central to its strategy: IT Park Uzbekistan has signed a memorandum with Kazakhstan’s Astana Hub to integrate startup ecosystems. This combination, collaboration with global vendors, academic investment, and regional partnerships, is enabling Uzbekistan to narrow its technological gap more quickly. People Instead of Servers Digital inequality is most evident in spending priorities. Investment structures...

Higher Education

American AI Company to Help Kazakhstan Develop University Admissions Exam

Kazakhstan’s Ministry of Science and Higher Education and the AI-based education company ETS say they are developing a new university admissions exam, the Admissions Insight Test (AIT), as part of a partnership launched in November 2025 to modernize the country’s national admissions system. Officials say the test is also meant to support the international recognition of results in future. “The Admissions Insight Test represents a decisive step forward for Kazakhstan’s higher education system,” said Sayasat Nurbek, Kazakhstan’s Minister of Science and Higher Education. “By building this new admissions exam in partnership with ETS, we are strengthening trust, fairness, and global alignment in how students enter our universities. This work positions Kazakhstan to lead in education innovation while ensuring our students are prepared for success in a rapidly changing, international, and AI-driven world.” ETS, which is headquartered in Princeton, New Jersey with offices worldwide, said the AIT would be modular. “Subject Modules” would align with the school curriculum and a student’s intended field of study. Separate “Skills Based Tests” would measure critical thinking, academic writing and research skills, communication, quantitative and digital literacy, and creative or design thinking. The ETS Research Institute is expected to work alongside Kazakhstan’s education leaders and National Testing Center specialists, using AI and advanced analytics to streamline development and deepen the insights universities get from results. Kazakhstan already uses nationwide testing as a central gateway into university, and policymakers have linked admissions changes to a broader push to become a regional education hub. “Around the world, governments are rethinking how education systems measure readiness for the future and they are turning to ETS because trust, rigor, and global expertise matter,” said Kadriye Ercikan, Senior Vice President of Global Research at ETS. “Our work with Kazakhstan reflects the same responsibility we bring to partnerships with education systems worldwide: applying the strongest measurement science, responsible innovation, and AI-enabled approaches to help countries build assessment systems that are fair, credible, and internationally respected.” The project sits alongside Kazakhstan’s higher education transformation and its decision to join OpenAI’s Education for Countries program as officials look to prepare students for an AI-shaped economy.