Fintech as a Transformation Driver: How Octobank, Kapitalbank, and SQB are Changing the Banking Landscape of Uzbekistan

Against the backdrop of a positive rating outlook from Fitch, financial technologies are becoming the foundation for the transformation of the banking industry in Uzbekistan. In conditions of high competition and digital inequality, the government and leading banks are investing in the fintech ecosystem, focusing on accessibility, innovation, and export potential.

1. Open Banking and API Economy

The Central Bank of Uzbekistan has been gradually implementing Open Banking since 2024:

• Technical standards for APIs have been created, allowing fintech companies to legally integrate with banks.

• A "regulatory sandbox" operates under the Agency for Digital Technology Development.

• BaaS (banking-as-a-service) solutions are supported, including card tokenization and multi-acquiring.

UZCARD has implemented API integration gateways and platforms for working with P2P and e-commerce business.

2. Global Partnerships

Uzbekistan's fintech ecosystem extends beyond the country:

• Octobank collaborates with Tenpay/Tencent to develop internet acquiring and export IT services. It is also negotiating inclusion in WeChat Pay.

• TBC UZ attracted $12.5 million from Triple Jump for digital microcrediting, including for women entrepreneurs.

• Kapitalbank launched a partnership with BS/2 (Penki Kontinentai Group, Lithuania) to implement next-generation ATMs with biometric authentication.

3. Development of Acquiring and Virtual Banks

• In 2024, Octobank serviced more than 100,000 virtual cards - a leader in the digital-payments segment.

• Payme, a subsidiary brand of TBC Group, has become a universal platform: payments, installments (Payme Nasiya), mobile banking, and investment products.

• Anorbank and Hamkorbank are actively developing multi-acquiring