Introduction
The largest digital bank in the country, TBC Bank Uzbekistan, has announced a $37 million equity investment from its predominant shareholder, London-listed TBC Bank Group PLC (TBC Group). This capital raises the total new equity funding secured in 2024 to $75 million, establishing a new annual record for TBC UZ.
TBC Uzbekistan, which encompasses Payme digital payments app and Payme Nasiya installment credit business, encompasses Uzbekistan’s main digital bank, TBC UZ. TBC Uzbekistan has already amassed 17 million unique registered users and will utilize this new capital to further develop its offerings and expand its profitability. TBC Uzbekistan’s presence was substantially expanded in 2024, with 17 million unique registered users as of September 2024. TBC Uzbekistan’s status as the premier digital banking ecosystem in Central Asia has been further solidified by the fact that more than 40% of the country’s population has now become involved in the ecosystem services.
Over the course of 2024, TBC UZ has secured $105 million in wholesale financing in addition to new equity funding as the digital bank continues to diversify its funding sources. The loan portfolio of the digital bank has experienced substantial growth, with a 99% year-over-year increase in the first nine months of 2024, resulting in a total of $460 million. A $10 million loan from Luxembourg-based Global Gender-Smart Fund (GGSF) via one of its portfolio managers, Triple Jump, is included in the total wholesale funding for this year. It also comprises a $40 million loan from FMO, $20 million in credit lines from responsibility Investments AG, $25 million in debt financing from BlueOrchard, and a $10 million loan from the European Bank for Reconstruction and Development (EBRD).
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TBC Uzbekistan has prioritized the expansion of its product portfolio and penetrating new market segments this year, as its primary business has been profitable. Throughout 2024, TBC has introduced a variety of innovative new products that are expected to increase customer engagement, loyalty, and revenue streams for the company. The Salom debit card, which was recently introduced, is poised to become the primary gateway to the entire TBC Uzbekistan ecosystem and TBC’s signature daily banking product. This card is a fundamental component of TBC’s strategy to simplify and enhance the user experience of financial services. TBC has recently introduced its inaugural revolving credit product, the Osmon Card, to enhance customer loyalty and offer a broader range of options. It also introduced TBC Business, the nation’s first completely digital banking service, to serve the country’s small and medium enterprises (SMEs) and individual entrepreneurs, thereby expanding its customer base.
TBC Uzbekistan made significant strides in 2024 by leveraging cutting-edge technology and fortifying its infrastructure to provide its clients with a more comprehensive banking experience, while simultaneously improving its efficiency. The deployment of AI-powered agents to handle payment reminder calls for customers with loans up to 30 days delinquent and the development of its proprietary speech tech stack were two of its most notable accomplishments. During the third quarter of 2024, they managed more than 40% of loans in early-stage delinquency, resulting in efficiency gains and a conversational experience similar to that of real people, which most customers could not differentiate. This innovative application of AI has improved customer interactions and significantly increased operational efficiency. Additionally, there are additional AI-driven solutions in the works for 2025.
This year, TBC Uzbekistan also accomplished a significant infrastructural milestone by establishing its own in-house processing center. This new facility establishes a strong foundation for the bank’s digital banking expansion by streamlining payment operations, expediting the development of financial products, and reducing the time to market for new offerings. Furthermore, TBC Uzbekistan established strategic partnerships with Visa and Mastercard, strengthening its capacity to provide innovative and customer-centric financial solutions and expanding its service offerings. TBC Uzbekistan’s status as the forerunner in the digital banking ecosystem of Central Asia is further enhanced by these partnerships.
Industry Comments
Vakhtang Butskhrikidze, CEO of TBC Group, commented: “This year has been a landmark one for TBC Uzbekistan, marked by significant progress. Our latest equity investment reflects our strong confidence in the massive potential of this high-growth market. With TBC Uzbekistan now contributing 9% of the Group’s net profit and 44% of our unsecured consumer loans portfolio, its role within our Group is pivotal and it is set to increase. This new capital will fuel even faster growth and innovation, positioning us to unlock greater value for our customers and investors alike.”
Nika Kurdiani, CEO of TBC Group operations in Uzbekistan, added: “Reaching a record in equity funding for 2024 is a testament to the transformative progress we’ve achieved. This investment bolsters our ability to scale at pace, bringing cutting-edge banking solutions to an even broader audience. We’re not just growing—we’re redefining what banking can be for millions of customers across Uzbekistan. Our team has achieved remarkable milestones this year and we are excited to continue this momentum into 2025, as we deliver financial services that are simpler, smarter, and more accessible for everyone.”
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