JOURNAL OF IQRO – ЖУРНАЛ ИҚРО – IQRO JURNALI – olume 18, issue 02, 2025
ISSN: 2181-4341, IMPACT FACTOR ( RESEARCH BIB ) – 7,245, SJIF – 5,431
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Okiljono a Makhsuma Mi zane’ma kizi
Banking and Finance Academy, Finance acul y mas e 's s uden
Tashken , Uzbekis an
Phone: +998900633773
E-mail: [email p o ec ed]
THE SILENT REVOLUTION: FINTECH’S GROWING INFLUENCE ON SME
BANKING AND THE FUTURE OF TRADITIONAL BANKS
Abs ac . This a icle examines how inancial- echnology (FinTech) i ms a e inc easingly
eshaping he small and medium-sized en e p ise (SME) banking segmen in Uzbekis an and, in
doing so, challenging he adi ional banking model. Globally, paymen gian s and FinTechs ha e
mo ed om ansac ional se ices in o embedded inance and ecosys ems ha se e SMEs. In
Uzbekis an, digi al-paymen s g ow h, FinTech s a up expansion, and demand o s eamlined
SME inancial se ices p esen a window o change. D awing on global li e a u e and eme ging
Uzbek e idence, he pape analyses he s a e o SME inance, highligh s key FinTech ini ia i es,
explo es he s a egic esponse equi ed o adi ional banks, and p esen s empi ically g ounded
ables and igu es. The indings sugges ha unless Uzbek banks shi om p oduc o ien a ion o
ecosys em hinking, hey isk becoming me e in as uc u e p o ide s a he han on -line SME
inancial pa ne s. The a icle concludes wi h ecommenda ions o egula o s, banks and SMEs
o na iga e his ans o ma ion.
Keywo ds. FinTech; SMEs; banking model; Uzbekis an; digi al ecosys ems; SME inance;
banking ans o ma ion
In oduc ion. Small and medium-sized en e p ises (SMEs) a e a c i ical componen o economic
g ow h, employmen and inno a ion — pa icula ly in eme ging ma ke s. In Uzbekis an, SMEs
con ibu e a subs an ial sha e o GDP and employmen . Ye many adi ional banks con inue o
se e SMEs using legacy p ocesses, p oduc -cen ic models (cu en accoun s, c edi lines,
acqui ing) and slow onboa ding. A he same ime, he ise o FinTech — enabled by digi al
paymen s, open-APIs, big da a and mobile pla o ms — is changing he na u e o inancial
in e media ion. Globally, paymen gian s and FinTechs a e mo ing beyond simple ansac ion
se ices o o e embedded inance, lending based on ansac ion da a, seamless onboa ding and
ecosys em in eg a ion. Wi hin Uzbekis an’s e ol ing inancial sec o , such dynamics a e
inc easingly isible. Fo example, digi al-banking ecosys em TBC Uzbekis an launched a ully
digi al SME banking solu ion in Decembe 2024.
This pape explo es how FinTech is in luencing SME banking in Uzbekis an, how banks a e
esponding (o ailing o espond), and wha s a egic implica ions a ise o he u u e o banking
in he egion. I is s uc u ed as ollows: a e a li e a u e e iew, we p o ide empi ical analysis
— including ables and igu es — on he Uzbek con ex , ollowed by conclusions and
implica ions.
Li e a u e Re iew. The li e a u e on FinTech’s impac on SME inance is b oad and g owing.
On a global le el, FinTech has been shown o inc ease SME access o c edi , imp o e inno a ion
ou comes and lowe ansac ion cos s. Fo example, Chen & Guo (2024) ind ha FinTech
JOURNAL OF IQRO – ЖУРНАЛ ИҚРО – IQRO JURNALI – olume 18, issue 02, 2025
ISSN: 2181-4341, IMPACT FACTOR ( RESEARCH BIB ) – 7,245, SJIF – 5,431
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ad ancemen signi ican ly enhances he likelihood o mic o & small en e p ises engaging in
inno a i e ac i i ies. a Xi Digi al pla o ms le e aging al e na i e da a, machine lea ning,
blockchain and cloud in as uc u e can o e as e , leane and mo e esponsi e se ices han
adi ional banks.
In eme ging ma ke s, he ole o FinTech in p omo ing inancial inclusion and suppo ing SMEs
is well documen ed. Fo Uzbekis an, Nozimo a (2024) explo es how FinTech inno a ions
(digi al paymen s, mic o- inance, blockchain) a e inc easing inclusion and suppo ing SMEs. On
he banking side, many pape s no e ha adi ional banks a e unde p essu e: hei p oduc -based
legacy models, hea y compliance bu dens and slow onboa ding hinde hei esponsi eness o
SME needs. One eme ging concep is “ecosys em banking” — whe e inancial ins i u ions mo e
om selling s andalone p oduc s owa d embedding inance in o business ope a ions (paymen s,
cash- low, wo king-capi al, analy ics).
In he Cen al Asian con ex , schola ship highligh s he impo ance o digi al in as uc u e,
egula o y amewo ks and human-capi al de elopmen in enabling FinTech up ake. Also,
esea ch unde sco es ha me e p esence o a digi al banking app is insu icien i he unde lying
p ocesses emain unchanged (“ açade digi isa ion”). Based on hese s eams, his a icle ocuses
on h ee key dimensions: (1) how FinTech is al e ing he SME banking alue-chain, (2) how
banks in Uzbekis an a e esponding, and (3) wha u u e s a egic ajec o ies eme ge.
Analysis and Resul s. Con ex o Uzbekis an’s SME and Financial-Se ices En i onmen .
Uzbekis an’s inancial-se ices sec o is in ansi ion: wi h o e 30 comme cial banks and a
g owing con ibu ion o he inancial sec o o GDP. SMEs a e majo playe s: hey con ibu ed
app oxima ely 54% o GDP and employed abou 78% o he wo k o ce in 2021. The digi al-
paymen s ma ke is expanding apidly: one es ima e places he ma ke alue a a ound US$100
billion, o which SMEs accoun o app oxima ely 55%. Mo eo e , cashless ansac ions now
comp ise abou 43% o o al paymen s in he coun y (43% in 2024 s 38% in 2023) acco ding o
Mas e ca d.
Key Indica o s o SME & FinTech in Uzbekis an
Indica o
Value
Yea / Sou ce
SMEs sha e o GDP
~54 %
2021, Uzbekis an. (de -
po al.mii .uz)
SMEs employmen
sha e
~78 %
2021. (de -po al.mii .uz)
Digi al paymen s
ma ke size
~US$100 billion
2025 es ima e. ( ank.uz)
Sha e o cashless
paymen s
~43 % o all paymen s
2024. (Ku si Media Узбекистан)
FinTech companies
(domes ic)
F om 24 in 2018 → 103 in
2025
(UzDaily.uz)
FinTech Inno a ions Ta ge ing SMEs. Se e al local FinTech and digi al banking playe s ha e
begun o a ge SMEs. Fo example, TBC Uzbekis an in oduced i s ully digi al SME banking
se ice (TBC Business) in Decembe 2024. In Ap il 2025, TBC launched a lending p oduc
in eg a ed in o he TBC Business sui e: sho - e m business loans up o UZS 300 million
(~US$23k) wi h minimal colla e al and digi al c edi -sco ing. Ano he playe , Ali Uzbekis an,
plans o c ea e a bank aimed a SMEs, mo ing om paymen se ices o banking licence-holding.
A s udy by Visa ound ha 48% o mic o- and small-business owne s in Uzbekis an using digi al
JOURNAL OF IQRO – ЖУРНАЛ ИҚРО – IQRO JURNALI – olume 18, issue 02, 2025
ISSN: 2181-4341, IMPACT FACTOR ( RESEARCH BIB ) – 7,245, SJIF – 5,431
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paymen s conduc hal o mo e o hei ansac ions digi ally; 85% epo a posi i e impac o
digi al paymen s on hei business.
FinTech SME-Ta ge ed P oduc s & Fea u es in Uzbekis an
FinTech/Bank
P oduc /Se ice
Key
Fea u es
Implica ion o SMEs
TBC
Uzbekis an –
TBC
Business
Fully digi al SME
banking & lending
Pape less
onboa ding, digi al
c edi sco ing, eam
accoun s
Reduces ic ion in accoun
opening and inancing
Ali
Uzbekis an
P oposed SME bank
Paymen se ices +
ma ke place + bank
licence
Po en ial in eg a ed pla o m
linking comme ce + inance
Visa s udy
(digi al
paymen s)
Digi al paymen adop ion
by SMEs
La ge sha e o
ansac ions,
posi i e business
impac
Paymen in as uc u e
becomes daily ope a ional
ool
T adi ional Banks’ Si ua ion and S a egic Gap. T adi ional banks in Uzbekis an a e ac i ely
digi ising—launching mobile apps, online po als and digi al paymen ini ia i es. Howe e ,
mul iple epo s indica e ha many banks emain p oduc -cen ed, using legacy p ocesses, and
hei digi al ans o ma ion is only supe icial (“ açade digi isa ion”). Fo example, opening an
SME accoun o ob aining a loan o en s ill in ol es manual e i ica ion, colla e al demands and
slow onboa ding. Meanwhile, FinTechs a e in eg a ing deepe in o business wo k lows: paymen
accep ance, cash- low da a, au oma ed lending decisions. The s a egic gap is clea : banks
con inue o hink in e ms o “c edi ”, “cu en accoun ”, “acqui ing” whe eas FinTechs hink in
e ms o “ecosys em”, “APIs”, “business-pla o m”
Compa a i e Business Model Fea u es: T adi ional Banks s FinTech Ecosys ems ( o
SMEs)
Fea u e
T adi ional Banks
FinTech / Paymen
Ecosys ems
P oduc iew
Sepa a e: accoun +
loan + acqui ing
In eg a ed: one window o
paymen s, lending, analy ics
Onboa ding &
accoun opening
O en manual,
pape wo k hea y
Digi al onboa ding, da a-d i en
sco ing
C edi
decisioning
Colla e al + income
+ legacy c edi
his o y
T ansac ion and cash- low da a,
al e na i e sco ing
In eg a ion wi h
business
ope a ions
Pe iphe al:
easu y, paymen s
sepa a e
Embedded: in e-
comme ce/ope a ions, API- i s
Role in SME’s
daily ou ine
Occasional
in e ac ions
Cons an pla o m ouch-poin s
(paymen s, dashboa d, analy ics)
Risk o
displacemen
High i emains
p oduc -cen ic
Ad an age i ecosys em expands
JOURNAL OF IQRO – ЖУРНАЛ ИҚРО – IQRO JURNALI – olume 18, issue 02, 2025
ISSN: 2181-4341, IMPACT FACTOR ( RESEARCH BIB ) – 7,245, SJIF – 5,431
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Key Findings & Resul s
A signi ican po ion o SMEs in Uzbekis an a e al eady using digi al paymen s o hal o
mo e o hei ansac ions.
FinTech company numbe s ha e quad upled om ~24 in 2018 o ~103 in 2025 in
Uzbekis an.
The digi al-paymen s ma ke is es ima ed a ~US$100 billion, wi h SMEs accoun ing o
~55% o ansac ion olume.
T adi ional banks con inue o con ibu e signi ican ly o he GDP h ough inancial se ices
(~43.3%).
FinTech i ms a e shi ing apidly beyond paymen s in o SME banking and lending ( o
example TBC’s digi al SME lending p oduc ).
The implica ion is clea : SME inancial se ices demand is e ol ing — no jus o paymen s bu
o in eg a ed ope a ional inance (cash- low, c edi , analy ics, wo k low in eg a ion). FinTechs
a e well posi ioned o mee his demand because o hei agili y, digi al- i s mindse and
in eg a ion in o SME ope a ions. T adi ional banks in Uzbekis an ace a genuine isk: i hey do
no e ol e hei business model, hey may be elega ed o he backend in as uc u e ( ails) while
FinTech ecosys ems cap u e he on -line SME ela ionship.
Conclusions. The in ech-d i en ans o ma ion o SME banking in Uzbekis an ep esen s a
“silen e olu ion.” While he analysis has cen ed on Uzbekis an, he pa e n mi o s global
dynamics: FinTechs mo ing om paymen s in o c edi and b oade business-se ice ecosys ems,
he eby posing a s a egic h ea o adi ional banks ha cling o p oduc -cen ic models.
Fo banks in Uzbekis an o emain ele an o SMEs, hey mus :
1. Think in ecosys ems, no p oduc s – Shi om o e ing s andalone c edi o accoun s o
embedded pla o ms ha in eg a e paymen s, cash- low, analy ics and ope a ions.
2. Pa ne and in eg a e – Ra he han ying o build e e y capabili y in e nally (which is
slow and expensi e), collabo a e wi h in ech p o ide s o embed in ech API se ices.
Pa ne ships can ac as he new R&D.
3. Simpli y adically – Bu eauc acy and slow compliance a e key ba ie s. Banks need as
onboa ding, da a-d i en sco ing (le e aging ansac ion da a), and s eamlined p ocesses.
4. Embed in o daily business wo k lows – The SME should eel he bank’s (o bank- in ech’s)
p esence in hei daily ope a ions: paymen accep ance, analy ics, wo king-capi al, in en o y, e-
comme ce. I hey don’ , hey migh “no no ice” he bank a all.
5. Regula o s & in as uc u e suppo – Digi al iden i y, open banking APIs, sandbox
en i onmen s, in ech- iendly egula ion and imp o ed da a in as uc u e a e enable s.
Uzbekis an is al eady mo ing in his di ec ion (e.g., s a egy o 2025-2030).
SMEs hemsel es should be s a egic: hey should seek end- o-end solu ions, pa ne wi h
pla o ms ha help no jus wi h paymen s bu wi h cash- low and g ow h. They should alue
hei ime: i hei bank keeps hem wai ing o weeks, hen pe haps a mo e agile in ech pla o m
is wo h conside ing. I adi ional banks delay hei ans o ma ion, hei u u e may simply be as
“in as uc u e back-end” p o ide s, while nimble in ech pla o ms domina e he on -line SME
in e ac ion. In a as -digi ising ma ke like Uzbekis an, he oppo uni y window emains open —
bu i is closing quickly. S a egic pa ne ships, agile p ocesses and ecosys em hinking a e now
impe a i e in he wa o SME inancial ela ionships.
JOURNAL OF IQRO – ЖУРНАЛ ИҚРО – IQRO JURNALI – olume 18, issue 02, 2025
ISSN: 2181-4341, IMPACT FACTOR ( RESEARCH BIB ) – 7,245, SJIF – 5,431
www.wo dlyknowledge.uz ILMIY METODIK JURNAL
Re e ences:
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2. Alu i, P. A., B andi, J., Bazzi, M., Kennedy, K., A de ne, M., & Lo z, M. (2025).
Ca ego ising SME Bank T ansac ions wi h Machine Lea ning and Syn he ic Da a Gene a ion.
3. “By 2030, Uzbekis an Plans o Double Fin ech In es men and Join he Global Fin ech
Index.” (19 Sep 2025).
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ansac ions.” UzDaily (05/04/2023).
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LinkedIn.
