Transformation of KMF from a Microfinance Organisation to a Second-Tier Bank: Digital Reinvention of Infrastructure and Banking Systems

• Obtain a second-tier bank license and ensure full compliance with the National Bank of Kazakhstan’s regulatory framework.

• Implement a new core banking system and 18 other mission-critical systems essential for the bank’s operations.

• Launch online banking and digital service channels without degradation of service quality or system availability.

• Build a modern, secure, and scalable IT infrastructure supporting the transition from MFO to a full-scale bank.

• Maintain customer service continuity and data integrity throughout the transformation.

• Full organisational and technological transformation completed in less than one year.

• System availability during the first three months of banking operations: 96.7%.

• Record-breaking loan portfolio growth in September 2025 (one month after licensing) — the largest in the company’s history since 1997.

• Record loan portfolio size achieved in September 2025, one month post-transformation.

• Stable client portfolio with zero attrition during transition.

• Core banking system supporting deposit, credit, and other banking products, fully aligned with local legal and regulatory requirements.

• Product Factory for centralized management of banking products.

• Customer Data Platform to consolidate client information and enable personalized services.

• Integration Bus and API Gateway, internally developed, enabling both synchronous and asynchronous data exchange between internal and external systems.

• BI and DWH platforms for operational, managerial, and regulatory reporting.

• DevOps ecosystem supporting CI/CD pipelines and automated deployments.

• Digital Channels Platform for mobile banking and terminal network operations.

• Employee Service Tools, including mobile applications for personal managers, back-office systems for credit processing, and an end-to-end loan conveyor.

• Unified Electronic Client Dossier for secure data management.

• Information Security and Monitoring Systems (SIEM, IDM, SOC) ensuring cyber resilience.

• Microservice-based architecture providing scalability and agility.

• Internal learning assistants for staff development (award-winning at HR4PEOPLE-2025 in the 'Innovation of the Year in HR' category).

• Enterprise architecture repository, maintained in compliance with TOGAF, ArchiMate, ITIL, and COBIT standards.

• Tight regulatory deadlines for transformation and licensing approval.

• The need to design and deploy an entirely new IT landscape within one year.

• Data migration from legacy systems without service interruption.

• Parallel development of 18 critical systems under unified architectural governance.

• Synchronization of IT and business transformations across multiple departments and external partners.

• Strict requirements for cybersecurity, operational resilience, and data governance under National Bank supervision.

The project was managed through agile methodologies and a hybrid governance model combining PMO oversight with SCRUM-based delivery cycles.

The transformation of KMF from a microfinance organisation into a fully licensed second-tier bank was one of the most ambitious and time-constrained financial IT programs in Central Asia. The objective was to build an entirely new technological and operational foundation for banking services within less than twelve months, while maintaining business continuity for more than 200,000 active clients.

The program included the implementation of a new core banking system integrated with 18 critical systems covering deposits, lending, payments, analytics, customer data, and digital channels. A modern microservice-based architecture and an internally developed integration bus enabled seamless data exchange between systems and ensured high performance and scalability.

A new Data Warehouse and BI platform were established to support real-time decision-making, regulatory and management reporting. The creation of a unified electronic client dossier, together with a customer data platform, provided a 360° view of the client and laid the foundation for future AI-driven analytics.

To support rapid delivery, the IT department was reorganized into specialized practices — DevOps, DataOps, Testing, and Systems Analysis — operating under a hybrid governance model that combined PMO control with Agile and SCRUM methodologies. Continuous Integration and Continuous Deployment (CI/CD) pipelines were introduced, enabling faster and more reliable software releases.

Special attention was given to information security, operational resilience, and compliance with the National Bank of Kazakhstan’s regulatory framework. The transformation was completed with zero downtime during the licensing transition period, ensuring uninterrupted client service and system availability above 96.7%.

The project not only delivered a new digital banking infrastructure but also transformed KMF’s organizational culture. It established a foundation for sustainable innovation, faster product development, and full digital customer experience, turning the company into one of the most technologically advanced financial institutions in Kazakhstan.

Kazakhstan