"Who knows?" The head of the Central Bank admitted that fintech startups could acquire banks.

"Who knows?" the head of the Central Bank suggested that fintech startups could acquire banks.

The introduction of the Open Banking system in Uzbekistan is intended to increase competition between banking institutions and fintech companies, which could ultimately lead to market consolidation. Central Bank Chairman Timur Ishmetov announced this on August 24 at the Silk Road Finance & Technology Forum in Tashkent, according to a Gazeta correspondent.

**Note:** Open banking is a technology that allows banks, with the client's consent, to exchange their banking and payment data with other banks and fintech services through standardized open APIs. This makes it possible, for example, to create a single application where the user can view and manage accounts and cards from multiple banks from a single window.

For banks and fintech companies, open banking opens up opportunities to create new products and services based on customer data, while for governments, it fosters increased competition in the financial market. Access to data is granted exclusively with the client's consent, and transactions are carried out at their request.

During the discussion, the moderator raised the question of whether traditional banks can maintain their position amid the rapid development of fintech and whether market consolidation is possible, including through deals between banks and tech companies.

Soppendu Mohanty, CEO of the Global Finance & Technology Network (GFTN), noted that fintech consolidation is a global trend. He noted that it is difficult for small players to sustain sustainable growth on their own for long periods of time, and banks are increasingly acquiring fintech companies, as purchasing ready-made technology can be more cost-effective than developing it or acquiring software from large providers.

"We can't have a fragmented ecosystem in which every small player is doing its own thing." "Technology, by its very nature, drives consolidation—it will happen," he stated.

An additional factor driving consolidation, he added, is the cost of regulatory compliance, which is borne by both large banks and small digital players.

"When compliance requirements, rules, and regulations come into play, the costs of compliance become significant for everyone—large banks, small banks, or fintech companies. They may not be able to withstand these costs. Therefore, consolidation becomes necessary to manage compliance costs. You can't skimp on them," Mohanty emphasized.

In his opinion, compliance requirements will largely drive fintech consolidation, the acquisition of tech companies by banks, or mergers with licensed digital banks that have their own proprietary technology model.

Timur Ishmetov, in turn, stated that the Central Bank views fintech companies as "the best and, likely, the fastest and most effective way to implement innovations."

"When we announced open banking, we wanted these fintech companies to literally enter the traditional banking market, perhaps offering only one of the products typically offered by banks. But they can do so so effectively that they will ultimately stimulate competition and innovation," said Timur Ishmetov.

This, he said, should force banks to either improve their own efficiency and compete with new players, or participate in further market consolidation (a process of market consolidation in which small banks close or merge with larger players).

"Banks will either have to compete and follow them, or, as has already been said, banks may be willing to acquire these startups. But perhaps there will also be cases where startups and fintech companies acquire banks. Who knows?" the Central Bank Chairman said.

Ishmetov noted that for the regulator, the development of fintech and open banking is primarily a tool for increasing financial inclusion, reducing product costs, and improving operational efficiency.

"And ultimately, this will be a single, coordinated, unified market," he stated.

As a reminder, the presidential decree of November 27, 2025, planned the implementation of an "open banking" system by September 1, 2026. This system ensures secure and standardized data exchange between banks, payment institutions, and financial technology market participants.