DIGITAL TRANSFORMATION OF THE BANKING SECTOR IN UZBEKISTAN: CHALLENGES AND OPPORTUNITIES

Abstract

Uzbekistan's banking sector has moved rapidly to digital channels. Between January 2023 and January 2026 the number of bank cards in circulation doubled to 68.3 million, and registered users of remote banking exceeded 62 million. This paper asks whether this growth in access has turned into deeper use of banking services and what still limits the transformation. Using official statistics, survey data and the main legal acts of 2019–2026, it groups the evidence into three layers: access, usage and trust. The results reveal a clear gap between access and use. About 47% of cards were inactive in 2025, person-to-person transfers made up 69% of payment transactions, and only 7.4% of adults saved in a formal financial institution. State-owned banks still held 63% of banking assets in early 2026, against a 2025 target of 40%, and card fraud has become the main form of cybercrime. The paper argues that the next stage of reform should target active, varied and safe use rather than the number of cards and accounts