TBC Bank Uzbekistan, the country’s only mobile-exclusive bank, has recently raised $38.2 million in a fresh equity investment. The funds will be used to expand its local presence and introduce new financial products. The investment was led by TBC Bank Group, which contributed $23 million, while the European Bank for Reconstruction and Development (EBRD) and the World Bank’s International Financial Corporation (IFC) each invested $7.6 million.
TBC Bank Group, which has been operating in Georgia, decided to expand outside of the country in 2019 and chose Uzbekistan as its first international market. It launched TBC Group Uzbekistan, a mobile-only bank with no physical branches, in 2020. The decision to enter Uzbekistan was driven by the country’s increasing digitization efforts and promising economic and socio-demographic factors.
Uzbekistan has a high smartphone penetration rate of 70% and an internet penetration rate of 77%. With 59% of its population under 30 years old, it represents a viable market for a mobile-specific bank. TBC Bank Uzbekistan offers a mobile app that allows customers to open bank accounts and access services such as cash loans and deposits without the need to visit a physical branch.
In addition to the mobile-only bank, TBC Group Uzbekistan also owns Payme, a digital payments app, and Payme Nasiya, a Sharia-compliant credit business. The bank plans to integrate experiences from these two businesses into its operations, providing complementary services beyond traditional banking.
TBC Group Uzbekistan aims to enhance its mobile bank with AI experiences, including a voice assistant integrated within its app. It also plans to introduce credit cards and an insurance product in the near future. The bank’s roadmap includes expanding services such as current accounts, accounting, offline payments, e-commerce payments, and lending for small and medium enterprises.
By the end of 2022, TBC Bank Uzbekistan broke even, and 2023 marked its first full year of profit. As of March 2024, the bank had 4.8 million unique registered users and 1.2 million monthly active users. TBC Group Uzbekistan, with a registered user base of 15 million, achieved profitability two years after launch and recorded 85% year-on-year revenue growth in the first quarter of 2024.
The impressive growth and innovative approach of TBC Group Uzbekistan align with the mission of supporting sustainable economic development and financial inclusion in Uzbekistan, according to the EBRD and IFC. The bank is projected to generate $75 million in net profit by 2025, with most of it coming from TBC Bank Uzbekistan.
The investment in TBC Bank Uzbekistan reflects the confidence in the potential for economic growth and financial inclusion in Uzbekistan. With its mobile-only approach and focus on digital services, the bank is well-positioned to cater to the needs of the country’s tech-savvy population and contribute to the development of the financial sector.