The entry bar to fintech, and banking in particular, is high. Not only is starting a bank from scratch complex and resource-intensive, but the general culture is different from “pure tech”. While being disruptive and willing to “fail fast” are traits we associate with tech companies, the financial sector is defensive by design. Stricter regulations and mandatory supervision from the state are indicators of how critical financial institutions are. That’s why it’s always interesting to hear when a tech company or a telecom operator becomes a bank.

Kyrgyz telecom operator O! launched its mobile wallet “O!Money” in 2017. When it started gaining momentum, the local financial regulator advised O! to obtain a license as a payment institution. They did. But shortly after, when the company started offering phones on installment plans through its O!Store, the regulator advised them to obtain a microcredit license. This time they did it by acquiring an existing microcredit company. However, as the business grew, financial operations became heavier, and Visor International, the investment group behind O! Mobile Operator, decided to separate its financial business from the rest.

As with the microcredit company, rather than starting a bank from scratch, it was decided to acquire an existing bank that already held a banking license from the regulator. In 2023, it was announced that Visor International had acquired Halyk Bank Kyrgyzstan. In 2024, it was relaunched as O!Bank. Today it offers loans, mortgages, international transfers, acquiring and physical POS, issues VISA cards, and (what interests me most) provides instant payments to its clients via the Kyrgyz national instant payment system operated by Interbank Processing Center.

Hence, the O! brand, earlier known for its telecom services, is now also recognized as O!Bank, providing banking services to more than 3 million people in Kyrgyzstan (about half of the country’s 7.5 million population). Its super-app “My O!” closes the gap to modern banking, payment services and online retail across the country. In a nutshell, O!Bank is, without exaggeration, an ecosystem of different services and products that come together under the same logic. Regardless of where you are in Kyrgyzstan, whether as a Kyrgyz national or a foreign tourist, My O! on your phone will allow you to pay and receive money, order goods and services, and stay online.

While considered relatively small, the Kyrgyz fintech market is highly competitive and (perhaps also due to this reason) modern. Even as an outlier, O!Bank faces harsh domestic competition from other innovative players, such as MBank and Simbank. However, O!‘s example is unique for Central Asia, with only a handful of “tech-turned-to-a-bank” companies globally that succeeded in building an entire ecosystem.