What Awaits Banks in Uzbekistan in the Era of Global Transformations?

The global banking sector is undergoing profound transformation influenced by digitalization, shifting customer expectations, and heightened competition from fintech companies. Banks worldwide are actively reconsidering their strategies concerning product development, service delivery, and customer experience, with a growing emphasis on personalization, technological advancement, and sustainability.

The regional KPMG team, led by Bolat Mynbayev and Khorlan Adilova, has been integrated into the Global Banking Hub—an international expert platform dedicated to the financial services industry—and contributed to the development of the KPMG Global Digital Banking Trends & Insights 2025 report. This research identifies global trends that are becoming increasingly significant for the markets of Central Asia. For Uzbekistan, these trends primarily signify a shift from basic automation processes towards more advanced and sophisticated service models. Rapidly increasing client expectations, fintech influence, an underserved youth segment, and the potential of artificial intelligence collectively define the agenda for sectoral transformation. 

A subsequent key trend in international practice is the gradual move beyond traditional banking services—from being a transactional intermediary to becoming a platform that supports customers across various aspects of their lives. One international example is Barclays’ initiative “Digital Wings,” which provides users access to digital educational content, including videos, articles, and interactive quizzes aimed at enhancing digital literacy and confidence in using online services. Modern banks strive to become comprehensive support hubs, offering not only basic financial services such as transfers and payments but also assistance with educational, social, and life-related issues. Manifestations of this approach range from digital learning services and budgeting assistants to tailored interfaces and personalized interaction scenarios. More advanced models include AI-powered tools that help detect stress and vulnerability and provide flexible support formats depending on clients’ life circumstances.

This global trend of transforming customer service is also reflected in Uzbekistan’s banking sector, where conditions are gradually being established for a transition to a client-centric model. Fintech companies continue to play a leading role in these changes due to their agility, niche products, and active user engagement. Consumers increasingly expect precise, personalized, and socially meaningful solutions, pushing banks to reconsider their approaches. Moving from fragmented initiatives to a comprehensive model with a clear strategy, unified standards, and regular adaptation of the customer journey becomes an essential condition for meeting these expectations. 

The third significant direction in the transformation of the banking sector is the development of youth banking—a systematic approach to engaging the young demographic as a source of long-term growth. International experience demonstrates that working with younger audiences is viewed as a strategic investment in future expansion. According to KPMG estimates, by 2030 the aggregate income of individuals under 30 will increase by 400%, reaching $33 trillion, while approximately $84 trillion in wealth will be transferred to young consumers. In response, banks are implementing educational and gamified solutions designed to equip teenagers with fundamental financial skills and facilitate early integration into the banking ecosystem.

This trend holds particular importance for Uzbekistan, where youth under 30 comprise more than half of the population. However, the majority of banks do not currently address this segment in a comprehensive manner. Available solutions remain fragmented and limited to basic functionalities such as cards with spending limits, parental controls, digital lessons, and educational programs. Only a few market players—no more than four or five—offer products incorporating elements of financial literacy, yet a holistic strategy encompassing the entire customer journey of young clients has yet to be developed. The youth segment remains one of the most promising areas for future growth.

To strengthen their position in this domain, banks must develop a full-fledged product portfolio: adapting user interfaces to different age groups, integrating foundational educational modules, and establishing consistent client support throughout the customer lifecycle. The proposed model will help engage young audiences from an early age, enhance financial literacy, and create a foundation for long-term loyalty. 

Amid the backdrop of global digital transformation, artificial intelligence (AI) has emerged as one of the key drivers of change within the banking industry. International experience confirms its high efficacy: according to KPMG’s The Intelligent Bank 2025, over 80% of banks regard AI as a strategic asset. Expected benefits include cost reduction, enhanced decision accuracy, and improved customer experience. Countries such as China, the Netherlands, and Sweden have already implemented large-scale AI use cases in underwriting, fraud detection, service automation, and product personalization.

The development of AI holds particular significance for Uzbekistan, as it has been designated a technological priority at the state level. The Presidential Decree titled On «Approval of the Strategy for the Development of Artificial Intelligence Technologies until 2030», adopted in April 2024, envisions the establishment of a regulatory framework, development of technical infrastructure for data processing and AI project implementation, execution of priority initiatives in social and economic spheres, as well as enhancement of digital skills among the population and the development of human capital.

According to KPMG’s assessment, the maturity level of Uzbekistani banks in AI adoption remains low. Unlike countries with more advanced digital infrastructure, AI is not yet applied in critical processes such as customer experience management, operational automation, and decision-making. Key barriers include outdated IT systems, weak data integration, and limited human resources in analytics and technology.

Nevertheless, the potential of AI for banks in Uzbekistan is substantial. The rapidly growing volume of digital transactions and high mobile banking activity generate an extensive behavioral data set. This data can be leveraged to build credit scoring models, anti-fraud systems, personalized marketing, and demand forecasting tools. Implementing AI in contact centers, risk management, and credit processes will enable cost reduction, faster service delivery, and greater decision accuracy. Realizing these opportunities will require banks to modernize their IT architectures, deploy data governance systems, and comply with new standards for algorithmic transparency and interpretability.