Volume 03 Issue 04-2023
93
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
04
Pages:
93-99
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
Today, the importance of digital technologies in society is increasing. The issues of their widespread introduction and
development of the digital economy have become a serious vital issue for every country nowadays. The
implementation of electronic government elements and support of the digital economy have a strong place in
Uzbek
istan’s near
-term development plan. First of all, this concerns the tasks of further increasing the share of
electronic document exchange and gradually transferring a certain part of state services to electronic form through
State Service Centers. Telecommunications infrastructure plays an important role in this process. Undoubtedly, the
effectiveness of the digital economy is influenced not only by the coverage of information technologies and the
availability of infrastructure, but also by standard economic criteria such as the business environment, human capital,
and successful management instruments. Therefore, economic development relies on them, which means that these
criteria are as important as before in the development of the digital economy.
KEYWORDS
Revolutionary changes, mobile payment, electronic payment system, financial system, banking system, information
system, digital banking, mobile devices, social networks, information services, e-commerce, internet trade,
information management, digital economy, innovative technologies, online services, digital factory, blockchain
technologies.
Research Article
TRANSFORMATION OF THE FINANCIAL AND BANKING SYSTEM IN THE
CONDITIONS OF THE DIGITAL ECONOMY
Submission Date:
April 20, 2023,
Accepted Date:
April 25, 2023,
Published Date:
April 30, 2023
Crossref doi:
https://doi.org/10.37547/ajsshr/Volume03Issue04-17
Murotjonova Mubina Dilshod Qizi
Jizzakh Branch Of The National University Of Uzbekistan Named After Mirzo Ulugbek, Faculty Of
“
Psychology
”, 5230100
- Economy (By Industries And Sectors), Student Of Group 140-20, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ajsshr
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 03 Issue 04-2023
94
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
03
ISSUE
04
Pages:
93-99
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
INTRODUCTION
Currently, revolutionary changes are taking place in the
world financial and banking system, primarily due to
the rapid growth of the market share of such elements
as electronic payment systems of the digital economy,
cryptocurrencies and lending without intermediaries.
First and foremost, mobile payments (which nearly
doubled annually from 2010 to 2016) and peer-to-peer
(P2P) lending (which grew 15-fold in the US in the last 3
years and 2015, annual turnover has reached $78
billion) a rapid increase in volume is observed. It is
known that, unlike traditional fields of activity, the
market value of Internet companies has no material
basis, and the more useful information the company
has collected, the cheaper the production of a product
(or service) becomes. Currently, the number of digital
banks and financial institutions that do not have their
own offices and ATMs is growing rapidly. Among the
main concepts of digital banks (digital banking) are
customer orientation, transition from the concept of
consortium to the concept of digital banking, the
development of CRM (Customer Relationship
Management), the growth of trust in customers, the
personalization of offers and the feature of mobility.
The services of digital banks are observed in all spheres
of life of modern people, first of all, mobile devices,
social networks, information services, e-commerce,
internet trade, etc. A digital bank offers a variety of
digital products and services to its customers using
digital channels.
Such banking infrastructure is optimized for digital
communications and is not yet ready for the rapid
change of digital technologies. Among the main tasks
of such banks is to quickly inform the client about the
status of his accounts and transactions, and to find the
nearest bank branch, ATM, exchange point or car kiosk
for him. In addition, a digital bank should provide its
customers with such an online service that it can work
on multiple platforms and focus its activities mainly on
mobile devices. We can point out seven main directions
for improving the digital banking model:
➢
omnichannel and simplification of user services;
➢
develop new methods and tools of information
management exit;
➢
use of open API system;
➢
cooperation and competition with financial and
technical companies;
➢
development of mobile payments;
➢
development and implementation of innovation
management strategy in the banking sector;
➢
implementation of innovative regulation of
activity.
A full transition to digital services will benefit not only
banks, but also consumers who will be able to access a
variety of banking services quickly and conveniently
Volume 03 Issue 04-2023
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American Journal Of Social Sciences And Humanity Research
(ISSN
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VOLUME
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SJIF
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(2021:
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6.
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(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
(for example, lower costs, coverage, flexibility,
knowing the client better). Innovative technologies
based on modern ICT software and technical tools are
actively being introduced in the banking system of the
Republic. According to the extended meeting of the
Bank of the Republic of Uzbekistan on the results of
the banking system, the share of banking services in
the structure of financial services was 88% and
increased by 1.2 times compared to previous years. In
addition, for 2019, there are certain plans to expand the
number and improve the quality of banking system
services, to rapidly introduce modern information and
communication technologies in this area tasks have
been defined. The share of customers who regularly
use remote banking services in the republic is steadily
growing due to many favorable factors. The low level
of financial literacy of the population and distrust of
cashless accounts prevent the rapid spread of digital
channels of banking services. It should also be noted
that the transition of banks to digital services is a long-
term and costly process that requires active support
from shareholders and the allocation of large amounts
of funds. Currently, banks provide a number of online
services and remote banking services to their
customers. In particular, TIF National Bank of the
Republic of Uzbekistan offers the following online
services to its clients:
1) notification of bank transactions via SMS;
2) to inform about the performed actions by e-mail;
3) organization of personal IVR-cabinet for customers.
The practice of providing remote banking services and
offering online services to customers shows that local
banks offer limited online services, and the process of
popularizing banking activities is very slow compared
to the needs of consumers. If local banks provide a
variety of financial services through digital channels,
consumers would be able to use banking services
anytime and anywhere. In order to develop the
provision of remote banking services and online
services to clients, the following measures are
suggested:
1) reducing the distance between banks and
consumers using new technologies;
2) organization and development of banking services
on the basis of regular consultation, working with
clients in an interactive way;
3) development of collaborative relations between
traditional banks and professional organizations on the
introduction of digital technologies and putting them
into practice;
4) new digital banking transactions for customers
involvement in the use of technologies.
Active introduction of innovative types of banking
services into the banking system for this, it is necessary
to develop a strategy for the development of the
digital economy in the republic, and for this, it is
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1121105677
Publisher:
Oscar Publishing Services
Servi
necessary not only to invest, but also to thoroughly
study the experiences of developed countries that
have surpassed us in the field of digitization. The
banking industry is one of the bright examples of rapid
digital development. will take The Deloitte consulting
company researched the process of using new
technologies among Russian banks, as a result of which
experts selected 11 innovations and divided them into
several groups: secu
rity (“smart” identification
-
Intellectual Identification), analysis (Big Data, personal
financial assistance - PDA - Personal Digital Assistant),
digital technologies (online wallet, contactless
payment, etc.), automation (automation machines and
robots in departments), gamification (games and
quests for customers) and P2P lending. Crypto-assets
are records on the blockchain that have their own
value and ownership
total circulation can now be done only under license.
Licensing includes mining, crypto-asset market
services and crypto-exchange activities. Licensing of
these routes is carried out by NAPU (National Agency
for Project Management). Later, the requirements for
crypto-exchanges in Uzbekistan were also approved:
foreign enterprise, “statutory amount” 30,000 ECU
(more than 5.5 billion sums), the presence of an
electronic system, the rules for trading, the use of
market quotations and the obligation to store
information about trading for five years. Many virtual
currencies are considered a form of social contract
without material support. shares, options, promissory
notes and the vast majority of other similar financial
instruments are also considered a form of social
contract and will not have full material support.
However, if the value of the classical currency is mainly
that of the country that issues it depending on the
financial, economic and political situation, the value of
cryptocurrencies is determined only by the results that
users expect from it. According to research from the
University of Cambridge, the total number of users of
cryptocurrencies has quadrupled in the last three years
- 8.2 in 2013 million to approximately 50 million by 2018.
It should be noted that with the transition to the digital
economy, economic growth trends may change
towards more active growth. On the one hand, in the
coming years, the total size of the crypto-economy will
reach a level comparable to the budget of individual
countries. On the other hand, this economic activity is
spread all over the world (the greatest intensity was
observed in China, Japan, European Union countries,
Scandinavian countries, the USA, South Korea and a
number of African countries), but its scale depends on
the economy of each individual country. In the total
volume and not so significantly in the world scale. A
number of countries (Switzerland, England, Israel, etc.)
using blockchain technology, issued and controlled by
their respective central banks expressed their desire to
create a currency. On the one hand, the introduction of
blockchain and other technologies will undoubtedly
increase the reliability of state virtual currencies, on the
Volume 03 Issue 04-2023
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American Journal Of Social Sciences And Humanity Research
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SJIF
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(2021:
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(2023:
7.
164
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
other hand, such an approach contradicts the main
idea of cryptocurrencies (distributed and without
central control) and cannot fully resist it. In any case,
we believe that it is necessary for all countries to
prepare their financial and economic systems for the
circulation of several currencies, some of which are
announced the development of a new digital factory
that will develop and implement digital innovations
and solutions for its customers in line with its
philosophy of “rethinking how banking serves
people”. Deutsche Bank also has its own center for
developing digital banking products. Digital Factory is
located in Frankfurt. In this digital factory, about 400
software
developers,
information
technology
specialists and financial experts from 14 countries work
on the most modern are working together to develop
digital products using these methods. In November
2016, Deutsche Bank offered software developers the
ability to create digital solutions for banking clients
that go beyond traditional financial services. This
approach allowed the bank to create an innovation
ecosystem based on them, which unites three
innovation laboratories, a digital factory and a new
research center that cooperates with startups from
around the world. The bank provides full connection to
the digital environment and the possibility to work in
this environment through the application program
interface (dbAPI), which allows developers to test their
ideas for the implementation of digital services of the
future. The logic of open interfaces in the transaction
part is revolutionary for the banking industry “The
Second Payment Directive” (Revised Payment
Directive, PSD2 EU) also confirms. It legally obliges EU
banks to provide APIs for user applications to third-
party developers for free. Based on the client's order
and by entering into a smart contract with the bank, a
third party can make payments and reflect information
about transactions in their programs. On the one hand,
this is another step towards open banking, which
scares many market participants, and on the other
hand, it seems like a new, strategically important
prospect. On the other hand, the proprietary approach
to the development of digital banking services is also
traditional is being used.
In particular, Sber Bank of Russia established the IT
company “Sbertex”. Sbertex projects are aimed at
modernizing the banking system with their own
efforts. However, the development of open interfaces
(Open API) is also known as one of the future
directions. The banking ecosystem is developing
rapidly, and the number of people who want to write
their own programs related to banking services is
increasing. All this indicates a desire for openness and
attraction of independent IT specialists focused on
startup-ideas customers. Naturally, such an approach is
required by the new digital economy paradigm. The
current 5th version of BIAN includes 7 business lines, 36
business domains, about 300 services in different
domains, more than 700 business scenarios and about
Volume 03 Issue 04-2023
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Publisher:
Oscar Publishing Services
Servi
2000 sample business operations. includes. The
developers include 27 financial organizations (ABN
AMRO Group, Credit Suisse, Societe Generale Group,
Deutsche Bank, Unicredit Group, ING, Achmea,
Rabobank, UBS, Banco Galicia, etc.) and 43 software
developers (Temenos, Diasoft, Infosys, Sopra Banking
Software, TCS Banks, IBM, SAP, Microsoft etc.)
“Digital banking” is the transition to an online banking
system in which banking services are performed over
the Internet. “Online” or “internet banking” is an
electronic payment that allows customers of a bank or
other financial institution to carry out a series of
financial transactions using the financial institution’s
website. system. This system allows banks and
customers to provide banking services conveniently
and quickly. The “Digital banking” system is based on a
high level of automation of processes, services are
based on websites, the use of software interface
applications (ARO) that ensure the delivery of banking
products between institutions, based on the
availability of access to financial information to
customers through computers, mobile phones and
ATMs
Now we will try to consider the banking system of the
Republic of Uzbekistan, that is, the problems of digital
banking and guidelines for its development, in the
conditions of the digital economy. First of all, it should
be noted that the "digital bank" service has a number
of unique features. They include, among others, the
following for the republican banking system:
➢
currently, the priority form of money circulation is
non-cash, the system to remote electronic
communication with the client to increase
efficiency refers to maximizing access;
➢
authentication
methods
include
physical,
electronic, password-encrypted and biometric
security of banking services using combined
methods aims to modernize the methods of
provision;
➢
creating a digital information system architecture
within the country with the help of “big data”
centralized information center through the
Internet and it is planned to optimize data
management;
➢
banking services as a result of the emergence and
expansion of bank automation departments and
the reduction of the workload on other
departments and increasing importance of
automation of banking activities;
➢
social media, web-programs and such as the wide
use of video communication equipment.
Based on the above, it can be concluded that, despite
the fact that the resource base of the banking sector of
our country is expanding, and the development of
“digital banks” has been actively started in our
republic, the share of bank assets in relation to the GDP
remains quite small. Also, the high level of state
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Servi
influence in the banking system of our republic and the
insufficient level of free competition between
commercial banks, the use of digital innovative
technologies in the provision of banking services, the
provision of large-scale remote banking services, the
large-
scale “digitization” of the banking system ca
nnot
fully stimulate its activity.
Now, the development of the electronic government
system in our republic, the expansion of the range of
services
of
information
and
communication
technologies, the increase in internet speed and
capabilities are expected to further increase the
number of internet banking services in the banking
sector. that it would be appropriate to activate the
reforms in the following directions:
➢
gradually reducing the monopolistic influence of
the state in the banking sector of our republic and
ensuring the independence of commercial banks as
market institutions;
➢
actively attracting foreign capital to the banking
system of our country, encouraging the opening of
branches of foreign banks in various forms;
➢
wide application of modern digital information
technologies in the banking system, increasing the
quality and speed of the Internet, further
developing the banking infrastructure;
➢
ensure free competition between commercial
banks, create a competitive environment in the
financial market by developing non-bank credit
organizations forming;
➢
modern, which is an important factor in the
formation of the “digital banking” system further
improvement of the system of training and
retraining
of
knowledgeable
programmer-
financier personnel to work in the digital economy.
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