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  • Greater financial literacy to facilitate investment culture

Greater financial literacy to facilitate investment culture

27 July, 2021 15:37
People differ in their views on investments. Many eagerly take the increasing opportunities to invest through various platforms, while others remain skeptical to do so. Strategy2050.kz correspondent spoke with Arman Bayev, Proportunity Management Company General Director, about his stance on the investment and his financial organization.

His company is an investment fund in Kazakhstan for collective investment in commercial real estate. It is engaged in the management of lease relations and operation of commercial real estate, assists developers in attracting bank and private financing in the early stages of construction, as well as collective investment in foreign real estate.

Why have you decided to focus on real estate investments? 

The main feature of the organization is that everyone can invest in real estate from one square meter to a small amount. We all know also that the area of real estate is one of the most reliable and least risky. Our team has wide experience of work with real estate and based on world practice we consider this type of investment as one of the basic sectors in the portfolio of successful investors.

What are the ways to develop financial institutions in the country?

Kazakhstan pays a lot of attention to the development of the financial sector. First is the growing demand for financial services, both for ordinary citizens and for business. In other words, financial technologies increase accessibility and efficiency of financial services for people and businesses, improve their living conditions and increase the competitiveness of business and, consequently, its profitability. Secondly, it is the activity of the Astana International Financial Center represented by the regulator that forms the unified national ecosystem of fintech. Financial technologies are one of the main instruments to improve the transparency of business and economy and create infrastructure. 

We see how the topic of investments is gaining momentum, but many people are still skeptical. What do you think is the case and what can help people start investing?

We identify several reasons for people's distrust of investing. First, the instability of the economy when Kazakhstan only gained independence. Second, a large number of pyramid-type organizations. Third, quite an unstable situation with second-tier banks. These are three main points, which we see cause people object to investments. The last one is also the awareness and financial literacy of the population. 

To increase people's confidence in the subject of investing, the most transparent investment instruments are necessary, the regulation must be increased, and maybe then people will begin to invest consciously.