AN ANALYSIS OF FINANCIAL TECHNOLOGY ADVANCEMENTS AND THEIR ECONOMIC IMPLICATIONS IN UZBEKISTAN

Annotasiya

This article analyzes the main directions of the formation of the digital economy and the development of financial technologies in Uzbekistan. The impact of fintech solutions on the increase in economic activity, the digitalization of the banking sector and financial inclusion indicators is considered. The potential of the national fintech infrastructure is assessed based on the reforms implemented within the framework of the "Digital Uzbekistan - 2030" strategy.

International Journal of Political Sciences and Economics
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Yildan beri qamrab olingan yillar 2023
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Zaynalov , J. ., Latipova , S. ., & Kholmurodova , S. . (2025). AN ANALYSIS OF FINANCIAL TECHNOLOGY ADVANCEMENTS AND THEIR ECONOMIC IMPLICATIONS IN UZBEKISTAN. International Journal of Political Sciences and Economics, 1(4), 313–316. Retrieved from https://inlibrary.uz/index.php/ijpse/article/view/126190
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International Journal of Political Sciences and Economics

Annotasiya

This article analyzes the main directions of the formation of the digital economy and the development of financial technologies in Uzbekistan. The impact of fintech solutions on the increase in economic activity, the digitalization of the banking sector and financial inclusion indicators is considered. The potential of the national fintech infrastructure is assessed based on the reforms implemented within the framework of the "Digital Uzbekistan - 2030" strategy.


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AN ANALYSIS OF FINANCIAL TECHNOLOGY ADVANCEMENTS AND THEIR

ECONOMIC IMPLICATIONS IN UZBEKISTAN

Zaynalov Jahongir Rasulovich

Professor, Samarkand Institute of Economics and Service

Latipova Shakhnoza Mahmudovna

(Associate Professor of the Department of Finance,

Samarkand Institute of Economics and Service)

Kholmurodova Sevara Askarovna

(Student of the Samarkand Institute of Economics and Service,

missfinancier7.5@gmail.com)

Annotation:

This article analyzes the main directions of the formation of the digital economy

and the development of financial technologies in Uzbekistan. The impact of fintech solutions on

the increase in economic activity, the digitalization of the banking sector and financial inclusion

indicators is considered. The potential of the national fintech infrastructure is assessed based on

the reforms implemented within the framework of the "Digital Uzbekistan - 2030" strategy.

Keywords:

digital economy, financial technologies, fintech, digital payment systems, banking

digitalization, economic development, financial inclusion, Uzbekistan, electronic payments,

digital banks.

Introduction

In recent years, digital technologies have been rapidly penetrating all sectors of the economy,

and Uzbekistan is not left out of this global process. In particular, the "Digital Uzbekistan -

2030" strategy adopted in 2020 provides for such important aspects as the development of digital

infrastructure, acceleration of digitalization of services, and technological transformation of the

economy. Financial technologies (fintech) are considered one of the important components of the

implementation of this strategy. The provision of financial services through digital payments,

electronic banking, and mobile applications is expanding the population's access to financial

services and facilitating economic activity. Financial technologies (fintech) are a major sector of

the economy that includes new technologies such as digital payment systems, e-commerce,

digital banks, mobile banking, blockchain, and cryptocurrency. The article also emphasizes

digital technologies' positive impact on the economy, the importance of government policy in

their proper implementation, and the reforms that must be implemented in the coming years.

Main part

The Strategy of the Republic of Uzbekistan “Digital Uzbekistan – 2030” sets the goals of the

widespread introduction of digital technologies in the country and the creation of a new stage of

economic development. This strategy envisages accelerating the process of digitization of the


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economy of Uzbekistan and ensuring the provision of digital services to all segments of the

population. The development of the digital economy involves not only the development of

modern technologies, but also their widespread introduction into all aspects of economic life. In

particular, the changes taking place in the field of financial technologies (fintech) are having a

significant impact on the country's economy. These technologies play an important role in

increasing economic stability, ensuring broad access to financial services, and creating new

opportunities in emerging markets. In this regard, digital payment systems and bank digitization

have become the main tools for introducing advanced technologies in the Uzbek economy. The

widespread use of dozens of digital payment systems, such as Payme, Click, Apelsin, is of great

importance in improving the digital services of banks, as well as increasing the level of financial

inclusion. Such innovations are facilitating the population's access to financial services and

creating broad opportunities for business development. However, for the digital economy to

thrive, it is necessary to improve digital infrastructure, establish a new legislative framework,

implement management systems, and provide technical support. The government's "Digital

Uzbekistan - 2030" strategy, as well as the growth of fintech companies and their collaboration

with digital banks, play critical roles in this process. These developments contribute to the

gradual advancement of the country’s digital economy and help reinforce Uzbekistan’s position

within the global economic landscape. At the same time, this paper aims to analyze the current

potential and obstacles in the fintech industry by exploring the economic effects of digitalization,

the progression of financial technologies, and the ongoing digital transformation processes in

Uzbekistan.
Key areas of financial technology application

Digital payments

: Mobile and QR-based payment systems have become increasingly popular,

especially during the COVID-19 pandemic and beyond, and today we cannot imagine our lives

without digital payment instruments. Such digital payment systems include mobile banking

applications and internet banking sites.

Blockchain and cryptocurrency

: In the process of developing a digital economy, the

government of Uzbekistan is taking a cautiously positive approach to blockchain technology and

cryptocurrencies. Blockchain technology — as a decentralized, immutable, highly secure

database — is being used to improve the efficiency of public services. In particular, blockchain-

based solutions are being tested in systems such as land cadastre, customs control, and public

procurement. Direct impact of financial technologies on economic development

Expanding financial inclusion

. Mobile applications and digital payment systems facilitate the

integration of the population into the financial system, which increases overall economic activity.
Supporting small and medium-sized businesses. Digital lending platforms are becoming an

important source of finance for small businesses that cannot access traditional banking systems.

Increasing the efficiency of payment systems

. Through financial technologies, payments and

money transfers are made in real time, at low cost, and the implementation of various economic

transactions is accelerated and the efficient use of resources is ensured.

Reducing the share of the informal economy.

Digital financial services allow for accurate and

real-time tracking of transactions. This, in turn, increases transparency and significantly reduces


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the size of the informal (shadow) economy. As a result, revenues to the state budget increase and

the effectiveness of fiscal policy increases.

Contributing to financial stability.

Broad and digitalized financial services make the system

more resilient to economic crises. In particular, digital financial services have served to maintain

a certain level of economic activity during the pandemic.

Figure 1: Barriers to Financial Technology Adoption.

Conclusions and recommendations

In conclusion, financial technologies are creating new opportunities for the Uzbek economy, but

for their full implementation, the development of institutional and technical infrastructure is of

great importance. The development of the financial technology sector has led to the following

positive results:

the population's access to financial services has expanded (financial inclusion has

increased),

financial services for small and medium-sized businesses have become simpler,

the transparency of transactions has increased, the risk of corruption has decreased,

new jobs and innovative products have emerged.

To continue this development, the government and the private sector must:

increase digital literacy,

expand internet infrastructure,


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create a modern and clear legislative framework,

pursue policies that support innovation.

Reference:

1. Strategic program of the President of the Republic of Uzbekistan Sh.M. Mirziyoyev “Digital

Uzbekistan – 2030”. https://strategy.uz
2. Official website of the Central Bank of the Republic of Uzbekistan – https://cbu.uz
3. Gomber, P., Koch, J., & Siering, M. (2017). Digital Finance and FinTech: Current Research

and Future Research Directions. Journal of Business Economics, 87(5), 537–580.
4. Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. N. (2020). From FinTech to

TechFin: The Regulatory Challenges of Data-Driven Finance. NYU Journal of Law & Business,

14(2), 393–447.
5. Qodirov, A. (2022). Financial technologies and their impact on the economy. Journal of

Economics of Uzbekistan, No. 3.
6. World Bank (2021). Digital Financial Services Report. https://worldbank.org
7. National Agency for Promising Projects (NAPP). (2023). Law of the Republic of Uzbekistan

on Digital Assets. Tashkent: https://lex.uz/ru/docs/6440433
8. Akhmedov, S. (2023). "The Impact of Blockchain Technologies on the Economy of

Uzbekistan". Journal of Digital Economics, 2(3), 55-61.

Bibliografik manbalar

Strategic program of the President of the Republic of Uzbekistan Sh.M. Mirziyoyev “Digital Uzbekistan – 2030”. https://strategy.uz

Official website of the Central Bank of the Republic of Uzbekistan – https://cbu.uz

Gomber, P., Koch, J., & Siering, M. (2017). Digital Finance and FinTech: Current Research and Future Research Directions. Journal of Business Economics, 87(5), 537–580.

Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. N. (2020). From FinTech to TechFin: The Regulatory Challenges of Data-Driven Finance. NYU Journal of Law & Business, 14(2), 393–447.

Qodirov, A. (2022). Financial technologies and their impact on the economy. Journal of Economics of Uzbekistan, No. 3.

World Bank (2021). Digital Financial Services Report. https://worldbank.org

National Agency for Promising Projects (NAPP). (2023). Law of the Republic of Uzbekistan on Digital Assets. Tashkent: https://lex.uz/ru/docs/6440433

Akhmedov, S. (2023). "The Impact of Blockchain Technologies on the Economy of Uzbekistan". Journal of Digital Economics, 2(3), 55-61.