ISSUES OF INTRODUCTION OF FINANCIAL TECHNOLOGIES IN THE BANKING SYSTEM OF UZBEKISTAN

Abstract

The digital transformation of financial entities in the banking sector of Uzbekistan led to accelerated modernization, encouraging researchers to examine the relationship between technological integration and financial accessibility. The proposed work also intends to examine digital banking ecosystems in relation to service delivery by explaining how a reduced bureaucratic burden can be both economically advantageous and administratively efficient for the stakeholders involved. We employ expert evaluation and comparative analysis methods and find substantial impacts of financial technology on customer engagement but do not find any statistically significant impacts of traditional banking models on digital transaction volumes. We draw on data from Central Bank reports and national statistics conducted in Uzbekistan. Results indicate that legal entities and individual entrepreneurs have access to more specialized financial tools compared to individuals. Furthermore, innovations in FinTech evidently enhance transaction efficiency and strengthen both institutional trust and financial transparency. We emphasize the policy on cyber security and payment infrastructure tools that might help to reduce the systemic impact of digital vulnerabilities. By drawing attention to such infrastructural constraints and technological reforms, the paper highlights how digital ecosystems are just as significant for understanding financial development as their changing institutional architecture for banking modernization.