Interest rates to decrease with implementation of fintech

Economy
munkhzul@montsame.gov.mn
2019-01-22 15:48:00

Ulaanbaatar /MONTSAME/. The annual ‘Investor Nation’ forum was organized for the 3rd consecutive year by Ard Financial Group on January 19. Alongside focusing on the importance of developing the stock market and improving the public’s financial literacy, this year’s forum was unique for discussing several important topics, such as the stock market in 2019, effects of fintech and digital transformation, legal environment and smart city.

Experts highlighted that 2018 was a record-breaking year for the Mongolian stock market as previously, only 2 companies launched their IPO annually, while 6 companies launched their IPO in 2018. This resulted in the record-breaking total trade circulation of MNT 210 billion including both the primary and secondary markets. However, despite the good numbers, the experts also warned the public about the importance of researching a company’s business history before buying their stocks.

Chairman of the Board of Directors of Mongolian Association of Securities Dealers B.Ulziibayar said, “Several companies are putting their IPOs online. It’s important for the services to be even closer to the citizens using technology as 2 million of the total 3 million citizens in our country have smartphones. Thus, brokerage firms are working to create the possibility for the citizens to buy and sell financial securities from their mobile phones. With this, there will be a significant positive impact on the secondary market, but electronic signatures will be needed.”

The forum participants also agreed that fintech is necessary to be developed. On this topic, founder of ‘GrapeCity’ and ‘Most Money’ A.Sukhdorj said, “By developing fintech, any financial service will be quick and easy. If it is successfully implemented, interest rates will also decrease.”  

The Investor Nation forum focused on that financial services can be made easier, saving time and money through the use of new technologies and people should expand their financial literacy and bring positive change to their lives.