Digitalization of Commercial Banks in the Financial Market and the Introduction of Digital Mortgages to Increase Housing Affordability

Digitalization is transforming the global financial sector, creating new formats for banking services and fundamentally changing customer interaction models. In Kazakhstan, where housing affordability remains a persistent challenge, the introduction of digital mortgage products is viewed as one of the key mechanisms for expanding access to housing finance [1]. This paper explores the processes of digitalization in Kazakhstan’s commercial banks, with a particular focus on digital mortgages as an instrument for increasing housing affordability. The study relies on national statistics and bank-level data covering 2019–2024, supplemented by case studies of Freedom Bank and Otbasy Bank. A combination of comparative, tabular, and descriptive analysis is applied to evaluate mortgage volumes, interest rates, approval times, and regional disparities [2]. The research also incorporates a literature review of both international and local studies to identify theoretical and empirical gaps. The findings confirm that digital mortgages reduce administrative barriers, accelerate loan approval, and expand financial inclusion by reaching wider population groups. However, affordability constraints remain due to high interest rates, insufficient preferential lending programs, and regulatory challenges. The novelty of this paper lies in linking digital banking innovations to social policy outcomes, highlighting how digital mortgage adoption interacts with issues of housing affordability in an emerging economy. The results contribute to academic debate on digital finance and provide practical recommendations for banks and policymakers. The study concludes that while digitalization can significantly improve efficiency and accessibility, broader institutional and policy measures are essential for sustainable improvements in housing affordability.