Mongolia, Japan hold joint exercise for engineering and sapper forces www.akipress.com

Japan and Mongolia continue to develop cooperation in the field of defense, exchanging experiences and knowledge to strengthen international interaction. The joint exercises "Road-2026" between the Armed Forces of Mongolia and the engineering unit of the Japan Self-Defense Forces began in Hitachinaka, Ibaraki prefecture, at the Japan Self-Defense Forces Engineering School on May 18.

Under the guidance of the Ministry of Defense of Mongolia and the Japan Ground Self-Defense Force, a program is being implemented to enhance the capabilities of the Mongolian Armed Forces, focusing on the engineering skills necessary for UN peacekeeping operations. The training process includes both theoretical training in Japan and field exercises in Mongolia.

At the opening ceremony of the exercises, Major General Yoshiharu Takashi said that this twelfth year of joint training for the engineering troops of both countries proves its effectiveness and stability. He noted that this year the focus will be on the construction and development of bases, as well as on electricity and water supply systems, with the aim of preparing highly qualified officers.

15 soldiers from Mongolia are participating in the exercises, studying aspects of constructing facilities for peacekeeping operations, as well as their infrastructure and supply systems.

The theoretical training will last in Japan until June 19, while the practical part will take place in Mongolia in August. The project, which started in 2014, aims to develop qualified military engineers for participation in UN missions and enhance operational compatibility between the two countries.

Fintech Landscape of Mongolia in 2026 www.thefintechtimes.com

With only 3.6 million people, what are the fintech, digital and wider economic developments of Mongolia in 2026?
Mongolia’s fintech landscape in 2026 reflects a country attempting to modernise at speed while balancing the realities of geography, economic concentration and financial inclusion. It is a market shaped by vast distances, a young digitally connected population and an economy still heavily influenced by mining and commodities. Yet over the past several years, Mongolia has quietly emerged as one of Central Asia’s more interesting fintech stories.

That trajectory was already visible in Richie Santosdiaz’s earlier 2024 article for The Fintech Times, “Fintech Landscape of Mongolia”, which highlighted how digital lending, mobile banking and payments innovation were beginning to reshape the country’s financial ecosystem. By 2026, many of those trends have accelerated further, particularly around digital banking infrastructure, instant payments, open banking and AI-driven fintech services.

Unlike some larger Asian fintech markets where competition revolves around scale alone, Mongolia’s fintech development has been driven by accessibility and practicality. Mongolia is the world’s most sparsely populated sovereign nation, with communities spread across enormous geographic distances. In many respects, fintech has become essential to overcoming structural barriers around physical banking access and financial service delivery.

The country’s wider economic backdrop also matters. According to broader international economic estimates and Mongolia-focused investment reports, Mongolia’s GDP surpassed approximately $24billion in 2025, while GDP per capita approached $7,000 as growth remained closely tied to mining exports, commodities and trade with neighbouring China. Ulaanbaatar continues to dominate the country’s economic and financial activity, serving as the centre for banking, technology startups and digital innovation.

Mining remains the backbone of Mongolia’s economy, particularly copper, coal and minerals linked to global supply chains. However, policymakers increasingly recognise the need for diversification and digital economic development. Mongolia’s long-term Vision 2050 development strategy continues emphasising digitalisation, innovation and economic modernisation as part of broader national development goals.

This broader digital transformation agenda has created fertile ground for fintech growth.

One of the strongest features of Mongolia’s fintech ecosystem is digital lending. Companies such as AND Global and its subsidiary LendMN emerged as major examples of Mongolia-born fintech firms scaling beyond traditional banking models. In 2025, AND Global raised $21.4million in Series B funding led by the International Finance Corporation and AEON Financial Service of Japan, reinforcing international investor confidence in Mongolia’s fintech sector.

LendMN itself has become one of the country’s most recognisable fintech platforms. Originally launched as Mongolia’s first fully digital lending fintech, the platform expanded rapidly through mobile-first microfinance and consumer lending solutions. In April 2025, LendMN secured an additional $20million debt financing facility from Lendable to support lending expansion for MSMEs and underserved borrowers.

These developments are particularly important in the Mongolian context because access to finance for SMEs and rural communities has historically been uneven. Fintech therefore plays a significant role not only in convenience, but also in financial accessibility.

At the same time, Mongolia’s traditional banking sector has also undergone substantial digital transformation. Major institutions such as Khan Bank, Trade and Development Bank and Golomt Bank have invested heavily in digital banking infrastructure, mobile apps and online financial services.

Golomt Bank in particular has positioned itself as one of Mongolia’s digital banking leaders. The bank’s SocialPay digital wallet and open banking initiatives have become increasingly visible components of the wider fintech ecosystem. According to publicly available information on the bank’s digital transformation strategy, a significant majority of customer transactions are now conducted digitally, while the institution continues expanding API-driven banking services and fintech integration capabilities.

Payments modernisation has accelerated further under the Bank of Mongolia’s wider financial infrastructure reforms. Recent reforms highlighted by Mongolia’s central bank leadership included upgrades to low-value and high-value payment systems, EMV migration for domestic cards, tokenisation capabilities and the introduction of Apple Pay in 2024 followed by Google Pay in 2025.

These developments reflect a broader shift occurring across Mongolia’s financial system: the gradual migration from cash-heavy transactions towards digitally integrated financial services.

Government digitisation efforts have also played a critical role. Mongolia’s E-Mongolia platform became one of the country’s flagship e-government initiatives, enabling citizens to access hundreds of public services digitally. By 2024, the platform had already surpassed 1.8 million users across more than 1,000 government services.

This matters because fintech ecosystems rarely develop independently from wider digital governance infrastructure. As citizens become more accustomed to digital public services, trust in digital financial services often grows alongside them.

The Mongolian fintech ecosystem itself is also becoming more organised institutionally. The Mongolian Fintech Association continues working with fintech firms, regulators and financial institutions to help develop the sector and encourage a more supportive regulatory environment.

Meanwhile, Mongolia’s wider investment environment has shown signs of increasing international engagement. The country’s 2025 DealBook report highlighted $2.6billion raised across 40 transactions involving Mongolian companies and foreign investors, signalling broader international interest in Mongolia’s evolving private sector and digital economy.

Yet challenges remain significant. Mongolia’s economy is still heavily exposed to commodity cycles and external shocks. Financial inclusion gaps persist in rural regions. Cash usage remains important outside urban centres. Venture capital availability is still limited compared with larger Asian markets, and scaling startups internationally remains difficult for many firms operating from Mongolia.

Cybersecurity, digital literacy and regulatory coordination also continue to be areas requiring ongoing development. As digital payments and lending scale further, maintaining trust and resilience within the financial system becomes increasingly critical.

Still, Mongolia’s fintech ecosystem in 2026 demonstrates how smaller and less globally visible markets can become innovation laboratories for digital finance. The country may not rival the scale of China, India or Southeast Asia’s largest fintech hubs, but it is building something increasingly distinctive: a digitally connected financial ecosystem shaped by mobile-first adoption, infrastructure modernisation and the practical need to deliver services across one of the world’s most geographically dispersed populations.

As increasingly reflected across commentary from The Fintech Times, fintech ecosystems do not need to be enormous to become influential. Mongolia’s progress illustrates how frontier and emerging economies can leverage digital finance not simply for convenience, but for broader economic transformation, accessibility and long-term modernisation.

Author
Richie Santosdiaz

Richie is a global economic development advisor and Managing Partner of Santos-Diaz LLC, specializing in international trade and foreign direct investment across the UK, Middle East, and North America. With over 15 years of experience and a Masters from SOAS University of London, he has advised high-level governments and multinational corporates while contributing to major outlets like Forbes and the World Economic Forum. Currently based in Dubai, he leverages his background in emerging markets and RegTech to bridge the gap between global policy and private sector growth.

Mongolia, Rio Tinto Reach Agreement to Reduce Oyu Tolgoi Management Fees www.zsm.mn

Mongolia and Rio Tinto have reached an agreement to reduce management fees for the Oyu Tolgoi copper and gold project by 50 percent, according to government officials.

The negotiations were conducted by a government working group established under Prime Ministerial Decree No. 68 to review and reduce the project’s management fee structure.

Prime Minister Н.Учрал described the agreement as an initial achievement in ongoing discussions related to the Oyu Tolgoi investment agreement.

The working group, headed by Minister of Industry and Mineral Resources Г.Дамдинням, also agreed with Rio Tinto to eliminate overlapping payments associated with project management costs.

Officials said the agreement is expected to reduce total fee-related expenses by US$2.2 billion and increase Mongolia’s economic benefit from the project by an estimated US$1.5 billion.

“This is also good news for investors,” Prime Minister Uchral said. “It shows that Mongolia is capable of protecting its national interests while engaging in negotiations with investors on an equal footing.”

He added that the government will continue working toward further progress in negotiations related to the OT LLC investment agreement and efforts to reduce interest rates on Oyu Tolgoi project loans.

Oyu Tolgoi is one of Mongolia’s largest mining projects and remains a major contributor to the country’s economy and export revenues.

Source: Zuuniimedee № 98 (7830) May 21, 2026

The United States and Mongolia Collaborate on Conservation of Golden Stupa and Temple Complex at Erdene Zuu Monastery www.mn.usembassy.gov

Kharkhorin, Uvurkhangai province – On May 22, 2026, representatives of the U.S. Embassy, led by Ambassador Richard L. Buangan, together with the representatives of the Arts Council of Mongolia (ACM), the World Monument Fund (WMF), and Erdene Zuu Monastery launched a two-year project called “Conservation of the Golden Stupa and Temple Complex of the Erdene Zuu Monastery.” The initiative, funded by the U.S. State Department’s Ambassadors Fund for Cultural Preservation, aims to protect Mongolia’s invaluable cultural heritage and strengthen Mongolia’s capacity for cultural preservation.

The project, which is expected to finish in May 2028, will restore the iconic Golden Stupa, the spiritual core of Erdene Zuu Monastery. The grant will support the formation of an expert consulting team; comprehensive documentation and condition assessment; procurement of supplies and materials; site preparation and physical restoration of the Golden Stupa; and capacity-building training for local professionals to strengthen conservation skills and foster public engagement and awareness.

“Helping to preserve this temple is a testament to the enormous respect and admiration that America has towards Mongolia” U.S. Ambassador Richard L. Buangan said during remarks at the Erdene Zuu Monastery. “Together, we will safeguard this invaluable cultural treasure for future generations. This project also symbolizes the importance both of our countries place on religious freedom and the role that Buddhism has played in shaping the history, identity, and culture of Mongolia. This collaboration will harness the power of international cooperation and expertise in preserving Mongolia’s historical monasteries and religious artifacts, many of which were nearly destroyed in religious purges of the late 1930s.”

The site was included on the 2025 World Monuments Watch to galvanize support for its preservation. Located within Erdene Zuu—Mongolia’s oldest Buddhist monastery, founded in 1586 by descendants of Chinggis Khaan on the ruins of Kharkhorin, the Mongol empire’s ancient capital—the Golden Stupa anchors a complex that embodies the legacy of the Mongol Empire and Mongolia’s Buddhist heritage through its distinctive blend of Mongolian, Chinese, and Tibetan architectural styles.

The completion of the project will ensure the long-term preservation of one of Mongolia’s most important cultural heritage sites and will establish the national capacity for heritage conservation and management.

This partnership highlights U.S. respect for Mongolia’s rich history, culture, and literary heritage while showcasing American leadership in technological innovation for preserving world heritage.

The U.S. Ambassadors Fund for Cultural Preservation supports diverse projects categorized into tangible historical sites, museum collections, and intangible cultural expressions. It has funded more than 1,000 projects across 133 countries around the globe since its inception in 2001. The fund selects roughly 25 to 35 projects worldwide annually, distributing multi-million-dollar investments to protect global history. In Mongolia, 24 projects worth $2.1 million have been supported through the Fund since 2003. This year the program is celebrating 25 years since its establishment and the 250th anniversary of the independence of the United States.

Mongolia's coal shipments to China surge 61% in April, overtaking Indonesia www.miningweekly.com

China's coal imports from Mongolia surged 61% in April, propelling it ahead of Indonesia, which is traditionally the world's largest coal exporter and has long been China's top supplier of the fuel.

Mongolia shipped 11.33-million metric tons of coal across the border to its neighbour China, narrowly edging out Indonesia which sold 11.12-million tons, down 22% on the year, according to data from China's General Administration of Customs on Wednesday.

Over the first four months of the year, Indonesian shipments were down 8% but retained their lead over Mongolia at 61.43-million tons to 39.37-million tons, even as Mongolian shipments rose 61% from the year-earlier period.

"Higher domestic output and lower local coal prices have reduced the competitiveness of imported low-CV Indonesian cargoes in the Chinese coastal market," maritime analytics platform Signal Ocean said in a note.

More volatility for Indonesian coal shipments could be in store, after the major commodities exporter on Wednesday unveiled a sweeping plan to centralise exports of coal as well as other key commodities including palm oil under a State-owned firm. Investors were rattled by the plan, which President Prabowo Subianto said aimed to assert greater control over pricing.

China's imports from Russia and Australia, the number three and four suppliers, fell 30% and 39% respectively in April.

The declines came as China cut its overall coal imports. China's imports fell 14% year-on-year in April to 33.1 million metric tons, with year-to-date imports down 2.1% on the year at 149.4 metric tons. 

Record Participation Marks Ulaanbaatar Marathon 2026 www.montsame.mn

The “Ulaanbaatar Marathon 2026” international race drew record-breaking participation this year, with more than 46,000 runners and athletes joining the event across all categories. The 5-kilometer race saw the biggest growth compared to previous years, attracting around 23,000 runners alone.

The marathon featured several race categories: full Marathon (42 km) – more than 700 runners; half Marathon (21 km) – thousands of participants, including elite local and international athletes; 10 km Sports Run – strong participation from amateur and professional runners; 5 km Health Run – around 23,000 runners; and 1.5 km Family Run – families and children joined in large numbers. A total of 17,000 people have participated in the 21km and 10km races. 

Notable athletes competing in the 21 km half marathon included Mongolia’s Honored Athlete Ser-Od B., international master runners Sarangua B., Munkhbayar N., Bat-Erdene G., and Natsagdorj O. International participants included Japanese runners Higuchi Daisuke and Ishikawa Ryuga, British runner James Drakeford, Russian athlete Vdovina Aleksandra Mikhailovna, and Chinese runner Cui Wei Kang.

Organized annually to promote running sports and encourage healthy, active lifestyles, the Ulaanbaatar Marathon has become one of Mongolia’s largest sporting events. 

The growing number of participants reflects the rising popularity of running and fitness culture in Mongolia, as thousands gathered in the capital city to celebrate health, endurance, and unity.

T.Davaadalai investigated over alleged misuse of bid funds; MNT 30 million for cosmetics www.gogo.mn

Former First Deputy Governor of the Capital T.Davaadalai resigned on April 29, 2026.

Police are investigating him on suspicion of money laundering related to the tender selection processes for the Tuul Highway, First Ring Road, and Second Ring Road projects.

According to the Independent Authority Against Corruption, T.Davaadalai allegedly spent MNT 30 million from bid funds on personal cosmetic expenses.

The investigation found that T.Davaadalai allegedly: transferred MNT 5.6 billion to a company established by a family member identified as "A"; transferred MNT 709 million to a company owned by A's friend; transferred MNT 47.9 million to a company 50% owned by A; bringing the total amount to MNT 6.6 billion, while reporting the work as if it had been completed.

As a result, a criminal case has been opened against him under Article 22.1 of the Criminal Code, and the investigation is ongoing.

Semi-coke fuel drives up to 54% drop in Ulaanbaatar air pollution www.gogo.mn

The Scientific Council under the National Committee for Air Pollution Reduction recently convened to evaluate the environmental impact of semi-coke fuel usage among capital residents during the 2025–2026 winter heating season.

During the session, D.Onurbat, a senior air quality specialist at the Meteorological and Environmental Monitoring Department, revealed that key atmospheric pollutants dropped by up to 54% compared to the previous year's winter season.

Official metrics indicate significant reductions across all major monitored pollutants: Sulfur dioxide (SO2): Decreased by 36 µg/m³ (54% reduction). Particulate matter (PM10): Decreased by 23 µg/m³ (21% reduction). Fine particulate matter (PM2.5): Decreased by 9 µg/m³ (17% reduction). Nitrogen dioxide (NO2): Decreased by 2 µg/m³ (4% reduction).

Throughout the 2025–2026 heating season, 436.7 thousand tons of solid fuel were supplied to ger district households across 425 localized distribution points. Semi-coke fuel comprised the vast majority of this supply, totaling 333.3 thousand tons.

Government Approves Baidrag Hydropower Plant Project Under PPP Framework www.montsame.mn

The Government of Mongolia, during its regular session on May 20, decided to implement the Baidrag Hydropower Plant Project under a public-private partnership framework through a build-operate-transfer agreement that includes project design, detailed environmental impact assessment, construction, operation, and transfer phases.

Deputy Prime Minister and Minister of Economy and Development Enkhbayar Jadamba and Minister of Energy Naidalaa Badrakh were instructed to organize the selection process for the private-sector partner in accordance with relevant laws and regulations.

According to the project’s feasibility study, construction is planned for 2026–2030, while operation and routine maintenance will be carried out from 2030 to 2055 under a 25-year agreement, before the facility is transferred to the state.

Once implemented, the project is expected to increase the installed capacity and electricity generation of Mongolia’s central energy system.

According to the Government’s Media and Public Relations Department, hydropower plants, as a source of renewable energy, do not pose adverse impacts on public health and society. The project is also expected to reduce greenhouse gas emissions and help create a healthier and safer living environment through clean energy production.

In the Gobi region, construction has begun on Mongolia's first high-capacity road with a thickness of 80 cm www.open.kg

Roads with a foundation and surface thickness of 80 cm are designed for challenging geological conditions and can withstand high transportation loads. These capital structures will provide reliable transportation routes in Mongolia, which is especially important for a country where over 20% of exports and about 80% of imports pass through new highways. The opening of the road will allow cargo from southern and third countries to reach their destinations without hindrance, which, in turn, will improve the living conditions of the local population.

On May 17, a ceremony was held in the Govisumber aimag to inaugurate a 435.6 km road for heavy cargo, connecting the city of Choir and the Zamyn-Uud border point. This road will become a key transit corridor for freight transport in the region.

The Chinese company Zhongshan Urban Construction Investment Group Co., Ltd. has been selected as the investor for the construction of this highway, which will become an important artery for Mongolia's exports and imports. The contractor for the project will be the Chinese state-owned company China Construction Sixth Engineering Bureau Co., Ltd. Specialized equipment has already begun to be delivered to the construction site, and work on the construction of the two-lane road for heavy cargo will start towards the Khoshig Valley.

The technical and economic justification, as well as the design, have been carried out by the company "RCSC" at the request of "Mongolian Special Purpose Road". After the project was approved by the relevant authorities, the route of the road was officially sanctioned.
The following facilities are planned to be built along the route:

Temporary parking every 50 km

Service complexes every 100 km

4 toll booths

470 drainage structures

16 bridges

Animal crossings

The project includes the construction of special structures to prevent flooding and ensure the migration of wild animals, which is of great importance for the ecology of the region.

The road surface structure includes:

4 cm of colored asphalt concrete

4 cm of base asphalt concrete

12 cm of black asphalt

30 cm of cement-stabilized gravel

Total thickness of 80 cm

Roads in the Gobi, such as in the Tavan Tolgoi and Oyu Tolgoi areas, will withstand high loads from heavy machinery, which is particularly relevant in the extreme climate conditions of the country. This highway will be an important step for Mongolia, opening new opportunities for transit and trade.