Loans granted online to undergo a revised approval process
In a recent development, the Agency for Regulation and Development of the Financial Market (ARDF) in Kazakhstan has published a decree regarding online loans, aiming to enhance security and reduce fraud. The decree, set to come into effect on July 20, amends regulatory acts on banking activities, specifically for online client verification.
Under the new rules, Electronic Digital Signature (EDS), biometric data, payment card details, verification with state databases, and a unique identifier agreed upon with the client can be used for client identification and verification. However, specific details about the new biometric data identification rules for online loans in Kazakhstan remain scarce.
Starting June 28, 2025, individuals in Kazakhstan must provide in-person biometric IDs to obtain EDS. This requirement suggests a shift towards more secure and personal identification methods, potentially extending beyond just EDS issuance and into other areas like online services. Yet, the application of these new measures to online loans is not detailed in the current information.
The ARDF's decree also mandates that banks in Kazakhstan provide a special calculator on their websites for calculating loan payments. Clients must be notified of changes in tariffs for payments and transfers at least 3 months in advance.
However, concerns about potential fraud in online lending persist. Some users on Tengri, a popular online platform, express apprehension about the increasing use of identification and biometric data, suggesting it could lead to further implementation of electronic money and the Masons' plan.
The recent case with a professor is an example of how scammers can manipulate people into giving them money. Meanwhile, there are worries about the potential for fraudsters to exploit online lending, particularly with regards to SMS confirmation.
Despite these concerns, biometric authentication in financial services is becoming more prevalent globally, with a focus on improving security and reducing fraud. Banks in Kazakhstan are encouraged to adopt similar biometric authentication methods to enhance security for online loans, although the specifics of these practices are yet to be detailed in future regulations or industry practices.
If you are looking for specific regulations or practices related to online loans in Kazakhstan, it is beneficial to consult official government announcements or financial regulatory bodies in Kazakhstan for the most accurate and up-to-date information.
Recently, amendments to the rules for providing banking services were developed in Kazakhstan, requiring banks to make their services more accessible to people with disabilities. Electronic money already exists on cards, and cash is not being phased out, according to BOSS.
However, the issue of scammers exploiting online platforms like Tengri remains a concern. Some users believe that the platform is contributing to the legitimization of fraudulent activities, although Tengri has not been accused of advertising for scammers. Iskul Iktulov (Ibrahim) suggests that giving money to people to avoid them taking out loans would be a better solution. Urunimagina believes that no matter how many precautions are taken, scammers will always find ways to deceive people.
A new form of fraud is starting in Almaty, where individuals claiming to be police officers are collecting personal data (propiska forms, fingerprints, and photos) under the guise of registration forms, potentially for future credit applications. It is crucial to be vigilant and report any suspicious activities to the relevant authorities.
As the digital landscape continues to evolve, so too will the measures taken to ensure security and combat fraud. Stay informed and stay safe.
The ARDF's decree promotes the adoption of biometric authentication in financial services, including online loans in Kazakhstan, as a means to improve security and reduce fraud. It is essential for banks to follow ongoing regulations and industry practices to implement these biometric authentication methods effectively.
Technology, such as Electronic Digital Signature (EDS), state databases, and biometric data, are being implemented in the financial sector of Kazakhstan to ensure secure client identification and verification.However, specific biometric data identification rules for online loans remain unclear, emphasizing the need for detailed future regulations.
