There are many questions regarding the mobile application of Otbasy Bank, especially since it holds a monopoly in the housing savings system. Almost every second Kazakhstani has or has ever held a deposit here. Currently, the capital of Otbasy Bank amounts to 654 billion tenge, while its assets total 4.2 trillion tenge. It is no surprise that public expectations of the bank are high.
When downloading the app from Google Play, there are numerous negative reviews. The old version was more understandable, whereas the updated one is quite complicated to use, to the extent that even the staff of the state bank struggle to navigate it. This is despite the app having 2.8 million users. The editorial team of inbusiness.kz attempted to investigate what is wrong with this service.
Google Play is filled with angry comments. Many users mention that the app is poorly designed, frequently crashing during biometric and code-password authorizations. Additionally, the app does not display the amount the user has sent to their account. In response to all the negativity, bank employees remain calm, stating that a new version of the Otbasy Bank Lite app is in development.
However, if you click on the new version and explore its contents, it is evident that there are more negative reviews than positive ones, just like in the previous version. There were a few who noted that the app has improved slightly, but such comments are few and far between.
Silence in the Reports
If the bank's mobile application is struggling (remember, at the end of summer, bank clients could not make early mortgage repayments through the app), it naturally raises questions: who is the actual developer, and how much did the development cost the bank?
In the bank's financial reports for 2023 and 2024, no information regarding the procurement of app development services could be found. Only services related to the modernization of the information system, comprehensive IT services "turnkey," and information support for websites were listed.
However, interesting details about the app surfaced in a recent interview where the chairperson of Otbasy Bank, Lyazzat Ibragimova, mentioned that the bank has not attracted external resources in the last two years.
"Previously, for example, we developed 50% of new features ourselves and 50% were outsourced – she says. – However, now, due to the need to quickly address bugs and implement changes, we have completely focused on our own developments. It is quite challenging, and the app still has its shortcomings. Currently, we are transitioning to a new platform called Light, while the old version continues to operate for client convenience. The design is also changing, as the current interface leaves much to be desired. I believe we are at a historic moment: with 2.7 million users, we have become quite recognizable, and clients have high expectations for the mobile application – which is entirely reasonable."
Self-Sustaining Model
At the same time, Lyazzat Ibragimova emphasizes that Otbasy Bank remains a state bank. If the need arises to hire several new developers and increase the payroll fund, it requires approval and inclusion in the development plan. However, it is well-known that everything within the system is highly bureaucratic.
For instance, to hire 20 new developers, Otbasy Bank must agree on the vacant positions with the national holding "Baiterek." After that, the matter is reviewed by four other ministries. Only after several months can the bank secure these additional positions. By that time, the need may have become irrelevant.
Furthermore, to implement any function in the mobile application, Otbasy Bank needs to announce a tender a year in advance, write specifications, and if the bank wishes to change anything, it becomes impossible. Therefore, the bank has entirely shifted to a model where developers, as bank employees, independently maintain and create everything available on the portal.
What is the Cost?
According to the chairperson, the mobile application cost the bank 1 million dollars, while other major banks spend around 200 million dollars on mobile development.
This is, let's say, a significant amount. However, to truly understand whether this is a lot or a little, it is worth investigating the market for mobile app development services for banks:
- The Kazakhstani IT company Kulenkov Group stated that the cost depends on the scope of work and can range from 50 million tenge and above, with a timeframe of 4-6 months.
- Russian IT specialists Purrweb offer to develop a successful banking app in 2024 for 5.4 million rubles (26 million tenge).
- The American IT agency Rishestsoft charges between 100,000 to 1.5 million dollars for developing a mobile banking solution of high complexity for a large bank or company. This is one of the leading providers of mobile app services with over 15 years of experience in creating high-quality mobile applications. Several other IT companies also offer app development services for banks, and prices vary among them.
However, considering the amount spent by the state-owned Otbasy Bank, one could assume that it is entirely feasible to create a mobile application for 1 million dollars that would not attract so many complaints.
It is not difficult to calculate that 1 million dollars is currently equivalent to approximately 525.82 million tenge based on the current exchange rate.
Updated:
On Friday, December 13, Otbasy Bank released a statement indicating that the bank is transitioning to an updated mobile application Otbasy Bank, which had previously been operating in test mode under the temporary name Otbasy Bank Lite. On December 17, 2024, clients of the bank who previously downloaded the Otbasy Bank Lite app will need to update it. The app will provide a corresponding prompt, as stated in the announcement.
Earlier, the editorial team reported on what would happen to the deposits of Otbasy Bank in the event of the cancellation of state premiums.
Image F1 Digitals from Pixabay