Freedom Holding Corp. Advances Fintech Ecosystem With Strategic Tech Developments

Freedom Holding Corp., a NASDAQ-listed fintech conglomerate, is making significant strides in the fintech landscape, driven by notable technological advancements and strategic acquisitions. The company’s commitment to innovation and growth is evident in its latest developments, which have garnered a positive forecast from S&P Global Ratings.

A standout achievement in Freedom Holding Corp.’s recent progress is the rapid development of Freedom Telecom. This ambitious project is focused on enhancing the Digital Silk Road initiative, a collaborative effort between Kazakhstan and Azerbaijan, aimed at expanding fiber-optic networks throughout Kazakhstan.

Partnering with global telecommunications giant Vodafone, Freedom Holding is poised to implement state-of-the-art Wi-Fi across all regions of Kazakhstan and establish modern telecommunication networks. The strategic advisory partnership with Vodafone enables Freedom Holding to leverage advanced technologies and expertise to build both fixed and virtual mobile networks, potentially positioning Freedom Telecom as a leading operator in the region.

Freedom Holding Corp., headquartered in Almaty, Kazakhstan, has been actively diversifying and expanding its fintech ecosystem. The ecosystem now includes a bank, two brokerage firms, two insurance companies, and a lifestyle segment. Over the past year, the company has integrated 13 additional companies into its ecosystem, investing over $170 million in various startups.

Notable acquisitions include:

These acquisitions have not only expanded Freedom Holding’s service offerings but also significantly increased its customer base. For instance, the acquisition of Aviata provided access to a database of two million frequent flyers in Kazakhstan, facilitating the promotion of banking services through enhanced customer engagement and rewards programs.

In the 2024 fiscal year, Freedom Holding Corp. reported a record-high revenue of $1.64 billion, a significant increase from $795.7 million the previous year. The company’s net profit grew by 82.4% to $375 million, with earnings per share reaching $6.37.

Freedom Bank Kazakhstan reported an impressive 151% increase in annual revenue to $615 million. The brokerage business also saw substantial growth, with revenue rising by 60.4% to $617 million. The number of brokerage accounts surged from 370,000 to 530,000, driven by organic growth and client migration from Belize to Kazakhstan and Armenia in early 2024.

CEO Timur Turlov emphasized the company’s focus on reinvesting profits into promising business lines such as banking and insurance. Freedom Holding Corp. aims to continue its growth trajectory by developing innovative digital products like online mortgages, car loans, and loans for small and medium-sized businesses. The bank’s integration of public service data in Kazakhstan allows for efficient risk scoring and quick loan issuance, further enhancing its competitive edge.

Serving about one million clients through its banking services and approximately five million customers across the entire ecosystem, Freedom Holding Corp. is well-positioned to maintain its leadership in the fintech industry. The company’s strategic vision involves leveraging technological advancements and strategic investments to outpace competitors and set new industry trends.

Freedom Holding Corp.’s technological innovations and strategic acquisitions underscore its commitment to evolving the fintech ecosystem, driving substantial growth and positioning the company for continued success in the dynamic fintech landscape.