The Central Bank of Uzbekistan has identified gaps in digital financial services.

**The Central Bank of Uzbekistan has identified shortcomings in the development of digital financial services**

Embedded financial services, or embedded finance, have significantly simplified access to payment transactions for the population of Uzbekistan. However, according to the country's Central Bank, they do not yet ensure full financial inclusion. This is due to unresolved issues with the quality and transparency of the financial products offered. This was stated by Dilbar Abduganieva, Director of Financial Inclusion at the Central Bank of Uzbekistan, speaking on August 25 in Tashkent at the session "Embedded Finance in Action — The Last Mile, the SME & the Individual" as part of the Silk Road Finance and Technology Forum.

The session's moderator, Khyati Chauhan, Chief Strategy Officer and Chief of Staff of the Global Finance & Technology Network, raised the question of whether embedded finance has truly expanded the reach of financial services or simply made them more convenient for those already covered.

Abduganieva emphasized that financial inclusion goes beyond simple access and includes affordability, active use, and high quality of services, as well as the availability of a basic set of products: lending, savings, and payments. She noted that embedded finance currently primarily ensures access and partial use, while the issue of quality remains open due to the lack of transparency of such products.

The Central Bank representative also pointed to the low level of formal savings in the country compared to regional and global indicators, despite the existing cultural tradition of saving. She called on fintech companies to focus not only on lending but also on savings products. Abduganieva added that embedded finance providers often target high-margin segments and existing infrastructure, failing to always reach the most vulnerable groups, such as female entrepreneurs, people with disabilities, migrants, and residents of remote regions. This, she said, requires the regulator to develop incentive measures and tailor requirements.

Rasulzhan Gulyamov, Chairman of the Supervisory Board of Uzum Bank, reported that over 10,000 sellers are registered on the Uzum Market marketplace. The bank uses their turnover and sales data to issue loans without traditional collateral, which is typically unavailable to small and medium-sized businesses without a credit history.

He also discussed the "Nasiya" installment plan, which allows buyers to pay off their purchases with installments ranging from three to twelve months. Gulyamov noted that the country's payment system has undergone dramatic changes over the past five to six years: it is now possible to open a bank card without visiting a branch, pay for purchases on marketplaces, and pay for utilities online, which has facilitated the inclusion of many previously excluded businesses in the financial system.

Kanokpan Lao-Araya, Country Director of the Asian Development Bank in Uzbekistan, stated that embedded finance has expanded both the reach and depth of financial services: existing clients have received more products, and previously unserved groups have gained access to basic services.

She identified four key areas where technology can deliver the greatest benefit: connecting people with business opportunities, assessing creditworthiness based on behavioral data instead of collateral, developing products tailored to specific groups (for example, women entrepreneurs), and strengthening consumer protection and risk management.

Todd Schweitzer, co-founder and CEO of Brankas, cited examples from other countries in the region where embedded finance has already expanded access to banking services. In the Philippines, one bank opened 500,000 accounts through an installment plan app and a messenger in six months, and a wallet with 70 million users allows people to open savings accounts through a partnership with four banks. In the UAE, Abu Dhabi Commercial Bank, in partnership with food delivery service Talabat, is issuing in-app credit cards based on open banking data, receiving one million applications in the first year.

According to him, Uzbekistan is currently laying the groundwork to become a similar regional fintech hub with the creation of the Tashkent International Financial Center and the launch of a new regulatory sandbox.