Freedom (US:FRHC)2025-06-02 13:00Summary of Freedom Holdings Investor Day Company Overview - Company Name: Freedom Holding Corporation - Founded: 2008 during the financial crisis - Core Business: Digital brokerage providing access to global markets, particularly U.S. markets, for retail investors in Kazakhstan and beyond [4][72] - Market Position: Top stockbroker by trading volume in Kazakhstan since 2014, with millions of accounts on the Kazakhstan Stock Exchange [5][6] Industry Insights - Kazakhstan as a Testing Ground: The country is viewed as a key market for technology-enabled services, serving as a testing ground for new technologies before rolling them out in Europe [3][4] - Digital Ecosystem Development: The company recognizes the need to build a digital ecosystem that includes banking and insurance services to remain competitive against global players [7][9] Financial Performance - Market Capitalization: Recently surpassed USD 10 billion, marking a significant milestone for the company [17] - Focus on Future Growth: Emphasis on reinvesting profits for future growth rather than focusing solely on current financial performance [12][16] - Profitability: The company remains profitable but acknowledges the potential volatility in financial conditions due to changing interest rates [14][15] Product Offerings - Super App Development: The company is focused on integrating various services into a super app, which is expected to enhance customer retention and reduce acquisition costs [20][24] - Brokerage Technology: Freedom Broker app (TraderNet) is a key product, with licenses in multiple countries including Kazakhstan, Uzbekistan, and the U.S. [21][22] Technological Advancements - AI Utilization: The company employs predictive AI for risk management, customer insights, and fraud detection, enhancing its competitive edge in consumer lending and insurance [28][29][30] - Data Infrastructure Investment: Significant investments in data centers in Kazakhstan to support growth and ensure data security [49][50][54] Market Opportunities - Central Asia and Caucasus: Kazakhstan is positioned as a financial hub for Central Asia, with plans to enhance connectivity and financial services across the region [42][43][44] - Global Expansion: The company aims to replicate its successful digital ecosystem in Europe and the U.S., competing with established fintech firms [65][66][78] Regulatory Environment - Regulatory Stability: The company emphasizes the importance of consistent regulations for long-term planning and investment [96][97] - Astana International Financial Centre: The establishment of this center aims to create a favorable regulatory environment for financial services in Kazakhstan [90][91] Strategic Vision - Long-term Goals: Freedom Holding aims to become a leading global digital ecosystem provider, leveraging its experience and technology to compete on a global scale [66][67] Conclusion - Future Outlook: The company is optimistic about its growth potential in Kazakhstan and beyond, focusing on technology integration, market expansion, and building a robust digital ecosystem to meet evolving consumer needs [65][66][68]