Frank RG: Digitalisation, Open Banking and Privatisation to Propel Uzbekistan’s Banking Sector Over Next Five Years
Uzbekistan’s banking industry is expected to maintain strong momentum over the next three to five years, according to new research by the analytical firm Frank RG. The report identifies digitalisation, the rollout of Open Banking and government-led privatisation initiatives as the main drivers of expansion.
Experts note that the sector remains one of the most dynamic in Central Asia. A major factor has been the rapid adoption of digital tools. Open Banking technology is being actively introduced, allowing banks to access transactional data from other institutions and create new lending models. This gives Uzbekistan a technological advantage in certain areas, even outpacing developments in Russia.
Lending and Regulation
Retail lending has been a key growth area, with volumes increasing by an average of 43% annually over the past five years, largely thanks to online distribution of unsecured loans. Analysts, however, expect this rapid pace to ease during 2025–2026.
At the same time, tighter monetary policy and new macroprudential restrictions from the Central Bank are pushing lenders towards more conservative strategies, focusing on collateral-backed loans and subsidised programmes developed in partnership with property developers and car manufacturers.
Payments Market and Competition
The report also highlights challenges in the payments market. Rising competition from fintech firms is likely to reduce banks’ commission income, forcing them to shift attention to interest-based products and subscription services.
Commenting on the findings, Frank RG Chief Executive Officer Yuri Gribanov said the report was designed to serve as a tool for strategic planning. He added that it would help banks in both Uzbekistan and Russia to better assess emerging opportunities and risks in the market.
Kursiv also reports that in July 2025 Uzbekistan recorded a significant improvement in its Business Activity Index.
