Uzbekistan Urban-Rural Banking Gap Widest at Account Opening Stage
Central Bank of Uzbekistan data shows only 21% of rural adults hold bank accounts compared to 86% nationally, marking a major access barrier.
The most significant hurdle to financial inclusion in Uzbekistan emerges at the very beginning of the banking journey, as indicated by the Central Bank of Uzbekistan's pilot financial inclusion index. Only 21% of adults in rural areas possess a bank account, starkly contrasting with the national average of 86%.
Rural and remote regions registered an overall financial inclusion score of 49 out of a possible 100 points.
Beyond the substantial 65 percentage point difference in fundamental account ownership, rural inhabitants also engage with savings products less often. Just 1% of rural residents maintain a savings or time deposit account, whereas the national average stands at 4%.
Nevertheless, the Central Bank observed that the activity levels of existing account holders in rural regions closely mirror national statistics. Inactive bank accounts constitute 32% of all accounts among the rural populace, a figure comparable to the 34% national average. This suggests that once rural residents access financial services, their usage rates are on par with those in urban areas.
A comparable pattern was identified within the small and medium-sized enterprise (SME) sector, where rural businesses' access to credit either met or surpassed national averages across certain indicators. The regulatory body concluded that the primary impediment in rural areas is the initial availability of financial services, rather than subsequent engagement.
To tackle this discrepancy, the Central Bank has prioritized initiatives such as increasing primary account ownership and expanding everyday financial channels for rural residents, alongside enhancing service quality and digital access for rural enterprises.