DIGITAL TRANSFORMATION IN COMMERCIAL BANKS OF UZBEKISTAN: CHALLENGES, OPPORTUNITIES, AND STRATEGIC PATHWAYS FORWARD

Abstract

The banking sector in Uzbekistan is undergoing a profound shift driven by digital transformation, aligning with national strategies like "Digital Uzbekistan – 2030" and the Banking Sector Reform Strategy (2020–2025). This article examines the key drivers, challenges, and opportunities in this process, drawing on empirical data from the Central Bank of Uzbekistan and international reports. Through a mixed-methods approach involving analysis of secondary data and case studies from leading commercial banks such as National bank of Uzbekistan and Ipak Yuli bank, I explore how digitalization enhances operational efficiency, financial inclusion, and competitiveness. However, persistent issues like cybersecurity vulnerabilities, infrastructure gaps in rural areas, and a shortage of skilled IT professionals pose significant hurdles. Solutions include regulatory reforms, public-private partnerships, and investments in AI and fintech. As an expert with over a decade in the Big Four advising on financial transformations in emerging markets, I argue that sustained policy support and international collaboration are essential for Uzbekistan’s banks to achieve sustainable growth. The findings suggest that effective digital adoption could boost banking efficiency by up to 30% by 2030, but only if these challenges are addressed proactively