399
CURRENT ISSUES OF DEVELOPMENT OF THE ACTIVITIES OF COMMERCIAL
BANKS IN ORDER TO INCREASE THEIR COMPETITIVENESS
Eshmuratova Nilufar Zhurabayevna
Graduate student of the Academy of banking and finance
https://doi.org/10.5281/zenodo.10684730
Abstract.
This article highlights the current issues of commercial banks' activity
development in order to increase their competitiveness.
Keywords:
commercial banks' activity,
modern banking standards, transformation
program.
АКТУАЛЬНЫЕ ВОПРОСЫ РАЗВИТИЯ ДЕЯТЕЛЬНОСТИ КОММЕРЧЕСКИХ
БАНКОВ В ЦЕЛЯХ ПОВЫШЕНИЯ ИХ КОНКУРЕНТОСПОСОБНОСТИ
Аннотация.
В данной статье освещены актуальные вопросы развития
деятельности коммерческих банков в целях повышения их конкурентоспособности.
Ключевые слова:
деятельность коммерческих банков, современные банковские
стандарты, программа трансформации.
The necessary measures are being implemented in the country to reduce the state share in
the banking sector by selling a state-owned stake in banks to strategic investors with appropriate
experience and competencies. At the same time, state-owned banks are implementing a
comprehensive transformation program, including introducing modern banking standards,
developing corporate governance, introducing modern solutions in the field of information
technology, optimizing customer service channels. Modern experts emphasize that competition in
the banking sector is a much more complex process than in any other segment of the economy,
since the stability of the national economy depends on it. The main indicators characterizing the
level of competitiveness are: market share, profit, financial stability. At the same time, analyzing
the position of a particular bank in a competitive market, of the listed indicators, the market share
indicator is most often used. Kazimagomedov, a well-known scientist in the field of banking,
points out the vastness of the sphere of banking competition. Kazimagomedov considers the
necessary condition for the ability to compete with other banks to have, first of all, sufficient
capital, otherwise he justifies the impossibility of expanding activities and providing high-quality
services to customers. In addition, in his opinion, it is important to have a sufficient level of asset
liquidity, professionalism and erudition of the staff, in the age of innovation and information
technology, a significant role is played by the availability of timely and high-quality information
400
about customer needs, as well as the introduction of new banking products (services) and the image
of a credit institution, which is an intangible part of assets the bank. Domestic experts
Khamrokhuzhayeva and Davirova (2022) believe that in order to increase the competitiveness of
the banking sector in Uzbekistan, it is important to solve problems with low liquidity, lack of
qualified personnel, methods of control and coordination of work, technical backwardness and
subordination of commercial banks. Continuing the thought of the previous authors, Mirtursunova
notes the need for banks to focus on digital banking aimed at improving the quality of customer
service, which makes it a strategic weapon for maintaining competitiveness. Ibodullayev and his
co-authors named the imbalance of capital, a high share of state participation, insufficient resource
base and high rates of mandatory reserves of the Central Bank as the main problems of the
development of the banking sector in the country.
In order to increase the competitiveness of commercial banks, it is necessary to implement
measures aimed at introducing technological innovations (mobile applications for online banking,
digital wallets and real-time transfers); improving the quality of customer service (individual
approach to customers, prompt response to requests and complaints, as well as providing
personalized financial recommendations and services); improved credit conditions (competitive
credit conditions such as low interest rates, flexible repayment schemes and access to loans for
various categories of customers); investment in data security and protection (use of advanced data
encryption technologies, enhanced security measures and employee training); flexible and
effective risk management system (rigorous analysis of borrowers' creditworthiness asset portfolio
diversification and effective risk monitoring); cooperation with technology startups and fintech
companies; cost management and rationalization of business processes (automation of repetitive
tasks, optimization of the organization structure and the use of new technologies to reduce
costs).The introduction of innovative methods and tools is an important aspect of improving the
competitiveness of commercial banks, which requires the implementation of the following
measures:
1. Mobile application development: the creation of user-friendly and functional mobile
applications will allow the bank's customers to access the bank's services at any time and from any
place. This may include the possibility of transfers, payments, loan requests, account management,
etc.
2. Introduction of blockchain technology: blockchain technology can improve the security
and efficiency of financial transactions. It can be used to speed up the process of transfers,
confirmation and signing of documents, as well as to create decentralized financial applications.
401
3. Using data mining: Data analysis can help banks better understand customer needs,
research and predict market trends, and optimize their operations. This may include using machine
learning algorithms to process and analyze large amounts of data.
4. Introduction of artificial intelligence (AI): AI technologies can be applied to automate
processes, detect fraudulent activity, personalize customer service and improve the efficiency of
the bank.
5. The development of digital banking: Digital banking services such as Internet banking,
online lending and electronic document signing are becoming increasingly popular. Investments
in the development of digital service channels will help the bank attract and retain customers.
6. Partnership with startups and fintech companies: Collaboration with innovative startups
and fintech companies can help banks introduce new technologies and develop new products and
services.
7. Staff training and development: Innovation requires qualified staff. Continuous training
and staff development will help the bank maintain a competitive advantage and successfully
implement new methods and tools.
8. Development of personalized services: the use of data and analytics technologies will
allow banks to offer personalized services and products to customers. This may include offering
customized investment strategies, loans, or insurance plans based on the client's unique needs and
goals.
9. Cybersecurity: In the context of the increasing number of digital transactions and data,
ensuring cybersecurity is becoming critically important. Banks should invest in modern data
protection systems, threat monitoring and identification, and conduct regular training of employees
on information security issues.
10. Ecosystem development: Banks can strengthen their competitiveness by creating their
own ecosystem combining various financial and non-financial services. This can be a platform
where customers can access various services provided by the bank or cooperating companies.
The introduction of innovative methods and tools requires strategic planning and decisive
leadership. Banks that successfully use innovations can improve their competitiveness and stay
ahead of their competitors in the financial services sector. The combination of these methods and
tools will help commercial banks to increase competitiveness, attract and retain customers, and
improve the efficiency of their operations. Increasing the competitiveness of commercial banks
will ensure sustainable economic growth and transition to innovative development in Uzbekistan.
402
The formation of an effective state policy in the banking sector will ultimately improve the
efficiency of the national economy as a whole.
REFERENCES
1.
Yuldasheva, S. (2024). TIJORAT BANKLARINING FAOLIYATINI ULARNING
RAQOBATBARDOSHLIGINI OSHIRISH MAQSADIDA RIVOJLANTIRISHNING
DOLZARB
MASALALARI.
Iqtisodiy
Taraqqiyot
Va
Tahlil
,
2
(1),
186–194.
https://doi.org/10.60078/2992-877X-2024-vol2-iss1-pp186-194
2.
Abdulazizovich, Abduvakhidov Akmal, and Kamilova Sanobar Mirdjamolovna. "ISSUES
OF BANKING SYSTEM DIGITALIZATION IN UZBEKISTAN."
World Bulletin of
Management and Law
11 (2022): 14-19.
3.
Abdulazizovich, Abduvoxidov Akmal, and Obilov Mirkomil Rashidovich. "RAQAMLI
IQTISODIYOT VA UNING MOLIYAVIY BOZORGA TA’SIRI."
International Journal
of Contemporary Scientific and Technical Research
(2022): 71-75.
