Freedom Bank reports $1.2 billion issued in mortgage loans
In 2021, Freedom Bank launched its digital mortgage. Since then, the bank has issued 33,500 loans worth $1.2 billion to Kazakhstanis from various walks of life, Timur Turlov, the founder and CEO of Freedom Holding Corp., reported at a government briefing.
«Our product — digital mortgage — allows borrowers to obtain a mortgage loan without visiting the bank in person. Every stage, from filling out an application to signing the agreement, is completed online. Integration with 34 state databases, automation of numerous processes and artificial intelligence analyzing borrower data and making decisions almost instantly, have enabled us to reduce the mortgage approval timeline from 14 days to 24 hours. We have received about 2 million applications in total, or more than 40 requests per hour. So far, we have issued 33,500 loans worth $1.2 billion,» Timur Turlov stated.
The CEO of Freedom Holding Corp. also highlighted that the technology helped reduce the cost of the application review process. This cost stands at approximately $220 per application for Freedom, while in the U.S., it is close to $10,500.
Freedom Bank launched its digital mortgage platform in the summer of 2021, becoming Kazakhstan’s first bank to offer this option. The only step that the bank’s clients are required to complete offline is visiting a notary, who is authorized to receive all necessary documents online.
Moreover, Timur Turlov also informed Prime Minister Olzhas Bektenov and cabinet members about other types of loans available online for Freedom Bank clients, including car loans, loans for limited liability partnerships and individual entrepreneurs. The timeline for obtaining a car loan has been reduced from the previous seven days to 12 hours. So far, 21,000 Kazakhstanis have used the service, and the total amount of funds provided has surpassed approximately $726.8 million.
«A total of one million applications have been filed, with 51 received every hour. This would never have been possible without digital auto loans and a well-organized system to counter insurance fraud,» the CEO of Freedom Holding Corp. said.
Timur Turlov emphasized digital loans for limited liability partnerships as one of the company’s key services. Thanks to digitalization, the process now takes just one day, with the shortest approval time being 12 minutes. This option allows businesses to borrow up to 100 million tenge (around $198,580) for a term of three to 12 months.
In turn, individual entrepreneurs can receive their loans within 24 hours. Freedom Bank has already received more than 860,000 applications from individual entrepreneurs, of which 30,000, worth $443 million, have been approved.
«In fact, this process is also unique, because lending to small business owners is considered risky worldwide. It is fairly expensive for banks, which is why they are often reluctant to do so. In Kazakhstan, this issue is more developed than probably anywhere else in the world. The key limiting factor — specifically for our bank — is often a lack of resources, as demand significantly exceeds our capacity to provide funds,» Timur Turlov concluded.
