Digital transformation of the banking sector and financial inclusion in Uzbekistan

Abstract

This article investigates how the digital transformation of the banking sector contributes to financial inclusion and economic growth, with particular attention to the experience of Uzbekistan. Drawing on global data from the World Bank's Global Findex Database and recent statistics on Uzbekistan's fintech and digital banking sector, the study shows that account ownership, the use of digital payments, and access to fintech-based credit have expanded rapidly over the past decade, both globally and domestically. The number of fintech companies operating in Uzbekistan grew more than fourfold between 2018 and 2025, remote banking users increased several times over within the same period, and the national Fast Payment System now processes billions of dollars in transactions monthly. The article analyzes the channels through which these developments support broader economic growth — reduced transaction costs, expanded access to credit for micro and small enterprises, and improved regulatory, infrastructural, and behavioral barriers that continue to constrain full financial inclusion. The article concludes with policy recommendations for sustaining Uzbekistan's digital banking transformation.