Uzbek central bank: online business lending lags retail digital credit 16-fold
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Only about 5 percent of microloans to small and medium enterprises in Uzbekistan are fully processed online, compared with 80 percent of new retail loans, the Central Bank of Uzbekistan reported. The central bank said the 16-fold gap points to an early stage in the digital transition of business lending, even as credit bureau data cover 98 percent of adults and 68 percent of SMEs.
Key Facts
- In Uzbekistan, only about 5 percent of microloans to small and medium enterprises are fully processed online, compared with 80 percent of new retail loans.
- Credit bureau data cover 98 percent of Uzbekistan's adult population and about 68 percent of SME entities.
- The Central Bank of Uzbekistan said the 16-fold gap indicates online business lending is at an early stage of digital transition.
- The central bank named expansion of credit information coverage and cash-flow-based financing models among its priority directions.
Retail vs Business Digitalisation
Eighty percent of new retail loans to individuals in Uzbekistan are issued through an automated credit pipeline, the Central Bank of Uzbekistan reported. For small and medium enterprises, only about five percent of microloans are fully processed through online channels. The central bank said this creates a 16-fold gap between the digitalisation of retail and business lending. Credit bureau coverage stands at 98 percent of the adult population and about 68 percent of SME entities. The regulator said the combination of wide credit information coverage and low digital business lending suggests corporate financing is only beginning its digital transition.
Cash-Flow Financing Models
The Central Bank of Uzbekistan said using credit history together with company turnover data can expand financing opportunities for creditworthy businesses. The bank's pilot financial inclusion index puts the digitalisation gap between retail and SME lending at 16 times. Transactional data combined with credit information allow lenders to assess a company's past payment discipline and current cash flow. This is especially important for businesses with limited collateral or no established credit history, the regulator said. Priority directions include expanding credit information coverage, shifting to cash-flow-based financing models, and developing embedded finance solutions.
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Uzbek central bank: online business lending lags retail digital credit 16-fold
