Responsible Lending and Financial Products

The Bank conducts its lending activities by providing loan products across all regions of the Republic of Kazakhstan. The main focus of the Bank’s lending activities is the provision of loan products to its customers. The Bank provides the following types of loan products to HCS depositors:

1. Housing loans;
2. Interim housing loans;
3. Preliminary housing loans.

Loan products are offered on standard terms to all Bank customers in the national currency of the Republic of Kazakhstan. Loans are issued to HCS depositors on the basis of housing construction savings agreements and bank loan agreements (Housing Loan, Interim Housing Loan, Preliminary Housing Loan) concluded with them in accordance with the Bank’s internal documents on granting loans and the Bank’s tariff programs.

The loan terms for Bank customers are determined by the terms of the tariff program selected by the customer.

The terms of use, interest rates, methods of securing loan repayment obligations and other basic terms and conditions of the Bank’s loan products and services are established by tariff programs and other internal documents of the Bank.

The Bank’s interest rate for granting a loan product is determined by the terms and conditions of the HCS agreement. Bank loan agreements obligatorily specify the method of loan repayment at the borrower’s choice from those offered by the Bank as of the date of conclusion of the bank loan agreement. The loan interest rate is set at the time of execution of the housing construction savings agreement and remains fixed throughout the term of the agreement. The fixed interest rate is not subject to unilateral change. When a HCS depositor switches from one tariff program to another on his/her own initiative, the fixed loan interest rate may be changed downward/upward as agreed by the parties during the term of the HCS agreement, subject to its terms and conditions and in accordance with the laws of the Republic of Kazakhstan and the Bank’s internal documents.

In bank loan agreements, the Bank specifies the full list of commissions and other fees and their amounts to be charged in connection with loan disbursement and servicing under the executed agreement.

The Bank is entitled to charge commissions and other fees, but adheres to a policy of minimum tariffs for its services. This approach is aimed at maximizing the attraction of new customers to the housing construction savings system and contributes to the expansion of the customer base.

In 2024, the Bank made the following changes to its tariff policy:

• Waived the fee for collateral replacement in cases where the collateral was deemed hazardous or damaged due to a natural disaster. This measure aims to support customers during emergency situations.

The Bank publishes information about interest rates and service fees for both individuals and legal entities on its official website.

To raise awareness among customers about the importance of responsible handling of personal data, promote sound financial behavior, improve financial literacy, and educate customers of different ages and backgrounds, the Bank carried out a number of initiatives. In 2024, the Bank carried out the following activities:

1. The Bank released several educational videos on its YouTube channel in both Kazakh and Russian, including: How to Save for the School of Your Dreams (https://www.youtube.com/watch?v=2aoQmnXFaUA, 50,000 views); How to Identify a Financial Pyramid (https://www.youtube.com/watch?v=v3m8Y6NpQ6I, 211 views); The Financial Monitoring Agency of Kazakhstan Encourages Financial Literacy (https://www.youtube.com/watch?v=wjRQkzonM2I, 366 views); Finance as a Love Language! (https://www.youtube.com/watch?v=60iL4Vb4OcY, 188 views); How Financial Games Help Develop Money Skills (https://www.youtube.com/watch?v=lmObvzCvBN8, 159 views); What is Financial Intelligence? (https://www.youtube.com/watch?v=2X_NkGJtCV0, 177 views); How Do Kazakhstanis Save Money? (https://www.youtube.com/watch?v=_A3eOKo80q8, 338 views).
2. The Bank published posts on its official social media channels to promote financial literacy, raise awareness about phishing attacks, and encourage caution to avoid scams.
3. A series of posts were published on Instagram offering tips on money management and saving via deposit accounts, aiming to increase self-service among the population. The Bank also hosted regular live Q&A sessions about its products and services without requiring branch visits.
4. The number of Digital Guides in Bank branches was increased to 118 to promote digital banking services and improve customers’ digital and financial literacy. As a result, the share of transactions conducted through digital channels increased from 42 % in 2023 to 53 % in 2024.
5. Together with Kazpost JSC, the Postman project was launched to expand service coverage. As a result, the number of postmen collaborating with the Bank increased 5.2 times during 2024. These postmen provided consultations on Otbasy Bank JSC products and assisted residents in remote areas in opening deposits via digital banking services such as Videobanking and Internet banking.
6. New chatbot scenarios were added, including guides on saving and obtaining a mortgage online.
7. The Bank optimized its IVR (Interactive Voice Response) system by adding new branches and self-service options to reduce the average waiting time for Contact Center operators.
8. Automated push notification campaigns were launched to inform customers about the option of receiving quick answers to their questions through the Bank’s WhatsApp channel.
9. Regular SMS and push notifications were sent to inform customer about online service opportunities, including deposit openings and transaction services.
10. The Bank regularly conducted operational campaigns to contact customers and assist them in obtaining mortgages online.
11. Information on measures taken to ensure the security and confidentiality of customer data was regularly published on the Bank’s official website hcsbk.kz, in the Otbasy Info section.
12. A dedicated FAQ block was created and published on the official website hcsbk.kz to promote informed financial behavior among the public.