Remote banking: Few banks have succeeded the ''full digital'' innovation (Case Study: Uzbekistan)

Through this section, Trusted Advisors experts and Transformers Awards teams are pleased to share with you their analytical synthesis of key trends related to transformations. The objective is to share with you recommendations and learnings by highlighting case studies and research results with high added value. Enjoy reading!


The environment of uncertainty and complexity continues to shake up business models, and with the social restrictions imposed by the current health crisis, the spotlight has shifted more than ever to digital as an indispensable way forward. Banks are no exception to this reality and are obliged to undertake transformations in order to reinvent their digital products and services. This transformation affects several aspects, in particular the deployment of remote banking services. For example, it is increasingly relevant to provide customers with a range of products and services accessible at a distance. These services are being deployed with a view to simplifying operations and making them faster. In the wake of this, a study by a team of researchers targeted the above dynamics within the banking sector, analysing the efforts made by banking players (Focus of the study: Uzbekistan). A key trend identified is the intense orientation towards the removal of physical boundaries between the bank and its customers. However, if this sector is a forerunner compared to several industries in the country in terms of digital transformation and innovation, its players are nevertheless more focused on product distribution channels, and as a result, few banks have succeeded in the "full digital" transformation of offerings and processes. Indeed, 57% of the surveyed banks state that innovation efforts are focused solely on the distribution channels for products and services, compared to 17% who are more focused on product innovation to improve the customer experience. In addition, 13% of efforts are focused on aligning with competitor-initiated innovations to maintain competitiveness. These results give us an insight into the nature of the innovation implemented by most players, which remains incremental and progressive, as opposed to deeper and disruptive innovation.

In short, banking innovation aimed at the development of distance banking remains insufficient in this country and is limited to a few aspects to the detriment of others. However, this transformation must integrate several facets of digital technology in order to be successful. This reality is also the consequence of a certain number of shortcomings and challenges that the players will have to face, in particular :

  • The lack of diversified and innovative products and services, allowing a wide choice for customers to carry out all types of remote operations;

  • The low level of access of banks to disruptive technologies in parallel with the low financial and digital literacy of customers hinders the effervescence of remote services;

  • Lack of public confidence in the country's banking system, particularly with regard to mobile banking, the confidentiality of their personal information and the security of online payments.


Faced with these challenges, some recommendations are very interesting to implement, especially in these times of crisis and uncertainty, namely :

  • Limit the circulation of cash by giving a real boost to remote banking solutions, such as contactless payment (NFC), mobile payment, E-commerce, ..;

  • Facilitating access to digital platforms for customers and prospects who are not necessarily familiar with the smooth use of these functionalities ;

  • Set up a multi-sector payment system with the ambition to support players from different sectors;

  • Broadening the range of services through innovative digital pathways, the development of M-banking, the implementation of interactive and operational chabots, massive communication on social networks and others; these are indispensable levers for the development of remote banking.


By Transformers Awards team / Trusted Advisors experts


© 2020 Trusted Advisors / Transformers Awards

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