THE DEVELOPMENT OF DIGITAL BANKING IN UZBEKISTAN

Abstract

This article analyzes the development of digital banking in Uzbekistan and its role in transforming the country's financial sector. It examines the expansion of remote banking, mobile applications, payment infrastructure, fintech services, customer experience, financial inclusion, and cybersecurity. The research is based on a review of digital-finance literature and descriptive analysis of information published by the Central Bank of the Republic of Uzbekistan. The findings show that digital channels are becoming a core part of banking rather than an auxiliary service. Bank-level statistics for 2025 indicate millions of registered users of remote banking systems, while the regulatory architecture has expanded to include payment organizations, electronic money systems, financial-technology initiatives, consumer protection, and cybersecurity institutions. The article identifies the main benefits of digital banking - lower transaction costs, wider access, faster payments, data-driven services, and stronger competition - as well as major challenges, including cyber risk, fraud, digital literacy, data governance, operational resilience, and unequal access. Recommendations are offered for open banking, digital identity, API standardization, cybersecurity, financial literacy, and inclusive fintech development.