In recent years, Uzbekistan has witnessed a significant surge in the popularity of remote banking services, marking a transformative shift in the country's financial landscape. A group of experts, as part of the Mastercard initiative, highlighted this trend in a recent report, shedding light on the factors contributing to the burgeoning success of digital financial services.
Report shows that the adoption of online transactions in Uzbekistan has witnessed remarkable growth. In 2018, the country had approximately 8mn users engaged in online transactions, and by 2022, this number soared to an impressive 30mn. The surge in online transactions is underscored by the fact that the volume reached $14bn in the previous year alone, marking a 1.5-fold increase from the preceding year.
A standout feature in this digital financial revolution is the escalating popularity of QR code payments. The report reveals that in the past year, the number of individuals utilizing QR code payments skyrocketed to 63,000, marking a fourfold increase from 2021. Notably, the total payments through QR codes surged from $1.4mn to a remarkable $17mn.
The experts attribute this substantial growth to the COVID-19 pandemic, which prompted shifts in consumer habits, fostering a high demand for online payment services. The resulting surge in popularity has stimulated the development of digital financial services, ushering in a new era for financial technology in Uzbekistan.
The proliferation of fintech applications has been further fueled by the deeper penetration of internet access in the country. Over the last five years, the number of internet users among Uzbek citizens has consistently grown, averaging an annual increase of 14%. Similarly, mobile subscribers have seen a steady rise, expanding by 7.8% annually.
State policy has played a pivotal role in shaping Uzbekistan's digital banking landscape. Since 2020, the government has pursued a strategic approach to reforming the banking sector, focusing on enhancing efficiency and reducing government involvement. Banks responded to this initiative by diversifying their loan and deposit portfolios, introducing innovative services and products to attract retail clients and small to medium-sized enterprises.
The statistics underscore the success of this approach, with the number of bank cards in circulation experiencing a remarkable surge of almost 79% over the past four years. Starting from 19mn, the figure climbed to an impressive 34mn, with particularly active growth observed in 2020 and 2022, recording increases of 6mn and 7mn, respectively.
Demographic indicators further highlight the immense potential for the local fintech market in the coming years. Over half of Uzbekistan's residents fall within the working-age demographic, and the substantial proportion of the young population presents a favorable landscape for the introduction of new banking products.
Moreover, the per capita income in Uzbekistan has more than doubled in the last five years, reaching $320 per month. Mastercard anticipates that this rising prosperity, coupled with ongoing urbanization trends, will significantly contribute to the continued development of the fintech sector in Uzbekistan.
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