TBC Bank Uzbekistan, the nation’s solo mobile-focused bank and a subsidiary of the London Stock Exchange-listed TBC Bank Group, has secured a $38.2 million equity investment to bolster its expansion within the nation and launch innovative financial offerings. Explore more at TBC Bank Uzbekistan.
The investment spree was led by TBC Bank Group with a $23 million contribution. Both the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) from the World Bank group, also stakeholders, each added $7.6 million to the funding pot.
Venturing beyond its Georgian roots in 2019, TBC Bank Group earmarked Uzbekistan for its inaugural foray abroad. The venture kicked off its operations in Uzbekistan in 2020 through TBC Group Uzbekistan by debuting a branchless, digital bank tailored for the mobile user, tapping into the country’s growing trend towards digitalization and its sizable population, the largest in the region after Russia and Ukraine.
Oliver Hughes, the head of international business at TBC Group, reflected on the early days, noting, “Before TBC’s inception, banking apps were nonexistent in Uzbekistan. Fast forward four years, and while most banks now offer a mobile application, TBC leads the way significantly,” during an exclusive discussion.
Uzbekistan boasts a 70% smartphone ownership rate and a 77% internet connectivity rate, with a youthful demographic—59% under the age of 30 among its 37 million populace, painting the picture of an ideal market for mobile-centric strategies.
Through its mobile application, TBC Bank Uzbekistan simplifies banking by enabling account creation and access to various services like cash loans and deposits, sidestepping the need for physical bank visits.
Hughes recounted to TechCrunch how, until recently, banking in Uzbekistan typically involved visiting a bank and waiting in queues for service.
In its portfolio, TBC Group Uzbekitek.biz also has Payme, a digital payment application catering to individuals and small businesses, and Payme Nasiya, a Sharia-compliant credit operation. The group aims to amalgamate experiences from these ventures with the bank’s services for an enriched customer experience.
For example, TBC Group Uzbekistan intends to integrate community-driven advice, local happenings, and travel recommendations through its app, starting with Payme and eventually extending these features to TBC Bank Uzbekistan users.
Moreover, Payme Nasiya, already facilitating point-of-sale and installment loans, plans to extend into e-commerce and buy-now-pay-later schemes to entice more local enterprises, aiding the mobile bank in customer acquisition.
Looking ahead, TBC Group Uzbekistan is set to enrich its mobile banking experience with AI technologies, as Hughes revealed plans of integrating a chatbot voice assistant powered by a large language model developed using the bank’s consumer datasets.
Come this autumn, TBC Bank Uzbekistan is poised to diversify its portfolio further with credit card offerings and insurance products next year, disclosed Hughes.
Projected expansions include an array of services tailored to small and medium-sized businesses, encompassing current accounts, accounting services, offline and e-commerce payments, and specialized lending solutions, Hughes elaborated further.
Vakhtang Butskhrikidze, CEO of TBC Bank Group, emphasized the strategic investment’s role in leveraging the substantial growth potential within Uzbekistan, a country with a fast-growing population of over 37 million, as TBC UZ continues to ride the wave of its burgeoning growth.
By the close of 2022, TBC Bank Uzbekistan achieved breakeven, and 2023 marked its inaugural year of profitability. As of March 2024, the bank boasted 4.8 million unique registered users and had 1.2 million monthly active users in the first quarter alone.
Overall, with a staggering 15 million registered users across all subsidiaries, TBC Group Uzbekistan attained profitability within two years of operation, showcasing an 85% revenue increase year-on-year in early 2024. It reported $296 million in gross loans, $216 million in deposits, and netted a profit of $23 million for the fiscal year 2023, predominantly propelled by Payme, though specific details on the mobile bank’s revenues or profits were not disclosed.
Andi Aranitasi, the EBRD’s head for Uzbekistan, lauded TBC UZ for its remarkable growth and its alignment with efforts to foster sustainable economic development in the region.
Hughes is optimistic about the future, predicting that by the end of 2025, TBC Group Uzbekistan is expected to generate a net profit of $75 million, largely driven by TBC Bank Uzbekistan.
“TBC UZ’s journey so far has been promising, and we remain optimistic about its capability to stimulate economic progression and enhance financial inclusivity in Uzbekistan,” expressed Neil McKain, the IFC’s country manager for Uzbekistan.
Compiled by Techarena.au.
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