TBC Bank Uzbekistan (TBC UZ), the nation’s leading digital bank, has announced a $37 million equity investment from its majority shareholder, London-listed TBC Bank Group PLC. This infusion elevates TBC UZ’s total equity funding for 2024 to $75 million, marking a record-setting year for the institution.

Strategic Investment for Growth

The substantial capital injection is poised to accelerate TBC UZ’s growth trajectory, enabling the bank to scale operations profitably and diversify its service offerings. Vakhtang Butskhrikidze, CEO of TBC Bank Group, expressed strong confidence in Uzbekistan’s high-growth market, noting that TBC Uzbekistan now contributes 9% of the Group’s net profit and 44% of its unsecured consumer loans portfolio. He emphasized that the new capital would fuel faster growth and innovation, unlocking greater value for customers and investors alike.

Advancements in AI and Technology Integration

A significant portion of the investment is earmarked for integrating advanced artificial intelligence (AI) capabilities into TBC UZ’s operations. The bank plans to develop proprietary AI-driven solutions to enhance customer interactions, streamline processes, and improve operational efficiency. By leveraging AI, TBC UZ aims to offer personalized banking experiences, optimize decision-making, and maintain a competitive edge in the rapidly evolving digital banking landscape.

Expansion of Product Offerings

In 2024, TBC Uzbekistan launched several innovative products to cater to a broader customer base:

• Salom Debit Card: Positioned as the bank’s flagship daily banking product, the Salom card serves as the main gateway to the entire TBC Uzbekistan ecosystem, simplifying financial services for customers.
• Osmon Card: This revolving credit product provides customers with flexible credit options, enhancing financial accessibility and customer loyalty.
• TBC Business: A fully digital banking service tailored for small and medium-sized enterprises (SMEs) and individual entrepreneurs, facilitating seamless business banking solutions.

Strategic Partnerships and Infrastructure Enhancement

To bolster its payment capabilities, TBC UZ entered into a long-term strategic partnership with Mastercard in October 2024. This collaboration aims to introduce Mastercard cards and additional payment solutions, broadening the payment options available to TBC’s customers and enhancing their online shopping, international purchases, and money transfer capabilities.

Financial Performance and Market Penetration

TBC UZ’s financial metrics reflect its robust growth:

• Loan Portfolio Growth: The bank’s loan portfolio expanded by 99% year-on-year in the first nine months of 2024, reaching $460 million.
• Profitability: Achieving profitability within two years of its launch, TBC UZ reported a net profit of $27 million in the first nine months of 2024.
• User Base Expansion: As of September 2024, TBC Uzbekistan’s ecosystem, including the Payme digital payments app and Payme Nasiya installment credit business, reached 17 million unique registered users, accounting for over 40% of Uzbekistan’s population.

Diversification of Funding Sources

Beyond equity investments, TBC UZ secured $105 million in wholesale financing throughout 2024. This includes loans from the Global Gender-Smart Fund, FMO, responsAbility Investments AG, BlueOrchard, and the European Bank for Reconstruction and Development (EBRD). Such diversification underscores the bank’s solid financial standing and its appeal to international investors.

Future Outlook

With the latest investment, TBC UZ is well-positioned to continue its rapid expansion and innovation in Uzbekistan’s digital banking sector. The focus on AI integration and product diversification aligns with the bank’s mission to redefine banking for millions of customers, making financial services simpler, smarter, and more accessible. As the bank scales its operations, it is set to play a pivotal role in enhancing financial inclusion and driving economic growth in Uzbekistan.

Conclusion

TBC Bank Uzbekistan’s recent $37 million equity investment marks a significant milestone in its growth journey. By channeling funds into AI capabilities and expanding its product suite, the bank is poised to offer enhanced, customer-centric services. As it continues to innovate and scale, TBC UZ stands at the forefront of Uzbekistan’s digital banking revolution, contributing to the nation’s financial sector’s modernization and accessibility.