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  1. Analysis and results

Analysis and results

If we turn to the figures on the introduction of innovations in the banks of the country, the clients of commercial banks of the Republic are increasing the use of remote services such as mobile banking and SMS-banking. As of January 1, 2011, the number of users of these services was 10,304, while at the beginning of this year this figure reached 472,573. Over the past 4 years, it has grown 45 times. Also, in accordance with the above growth rates, the number of users of Internet banking and Bank-Client services increased from 14,241 to 62,227 during the same period. The above figures alone show the scale of the growth rate [9].

Indeed, on August 1, 2018, by the Resolution of the Central Bank of the Republic of Uzbekistan, the concept of “digital banking” was introduced into our national legislation. According to him, a bank or its subsidiary that provides remote banking services using innovative banking technologies is a “digital bank”.

In 2018, 4225 individuals used remote banking services, while as of January 1, 2021, their number reached 13,748. With the increase in the number of mobile applications, the advantages of the QR-code system, and most importantly, the improvement of literacy in the use of digital financial services among the population, the use of digital technologies in the banking system is growing.

Table 1 Number of users of microcredit remote banking systems as of November 1, 2019 [2]

Number of users of microcredit remote banking systems as of November 1, 2019 [2]

A FINCERT Center for Prevention of Information and Cyber Security Threats and Response to Financial Fraud (FINCERT) will be established under the Central Bank in the banking and financial sector. Of course, information security issues will be in the focus of attention in ensuring customer confidence in the payment services market, combating fraud and data protection [10].

Anor Bank, the number one bank in the country, has also been registered by the Central Bank. The activities of this bank are aimed at providing online services 24 hours a day through a mobile application. The microloans provided by the bank amount to 8 million soums, with an interest rate of 23% [11].

The Digital Bank service has a number of features:

  • Cash flow is non-cash, maximizes access to electronic communication with the customer;

  • Aims to modernize the methods of ensuring the security of banking services using authentication methods, physical electronic, encrypted biometric, combined methods;

  • Optimization of digital IT architecture and data management using the data center “Big data” centralized data center via the Internet;

  • Extensive use of social media, web applications, video communication forms in communication with the client.

As a result of reforms carried out in recent years in our country, great attention is paid to increasing the popularity of banking services, the introduction of direct communication and mobile technologies, especially in social services, transport, trade, catering, especially in the regions. The first stage of development of the Internet banking system has been implemented in Uzbekistan. That is, the exchange of information has intensified, banking services have been introduced that systematically integrate the Internet and mobile communications (Click, Payme, launch of a program for remote management of financial resources in the bank). In particular, as of January 1, 2017, the number of users of Internet banking and “Bank client” increased by 9.5 times compared to 2011 and amounted to 135,629. Users of SMS-banking and mobile banking services will receive 1 mln. 906 thousand 482.

However, despite the above, the share of bank assets in the country’s GDP remains low. Also, the high level of government intervention in the banking sector is one of the factors that increase the competitiveness of the banking system, which hinders the development of the digital banking system.

There are also problems that hinder the development of the digital economy in our country:

The system is not fully protected from cyber threats. The majority of users of services from banks and non-banking organizations want to store all their data on a single plastic card and manage them through a single system. Lack of Ammr data security can cause problems with storing this data.

The amount of time it takes to troubleshoot a system. There are still problems with plastic cards, ATMs, electronic conversion in the banking and financial system of the country. Our scientific research has shown that it takes an average of 2-72 hours to solve such problems. The main reason for this was the lack of specialists in the field or their low level of qualification.

The number of programs running in the off-line system. The number of offline banking and financial programs in the country is limited. Most of the software is on-line software. Because online applications consume a lot of internet, the majority of customers use these programs in limited quantities.

Low competitiveness. There are few Internet providers and software companies in our country. The services they provide and their prices are also very close to each other. Since the number of users is not large, the products of the offerers will not be different either.

Underdeveloped infrastructure of the digital economy. It was found that the communication standards were not fully developed and most of the communication system programs and tools did not meet the standards. Of course, the main reason for this is that the standards of the Republic of Uzbekistan for the programs and tools of the communication system are not fully formed.

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