WAYS OF DIGITAL TRANSFORMATION OF COMMERCIAL BANKS' ACTIVITIES IN UZBEKISTAN

This article explores the pathways and impact of digital transformation within the commercial banking sector of Uzbekistan, framed by the national "Digital Uzbekistan – 2030" Strategy and Central Bank reforms. The study analyzes the transition from traditional brick-and-mortar banking to digital-first models, highlighting key performance indicators from 2024–2025, including a 20% year-over-year surge in remote banking users and a significant reduction in the cash-to-money supply ratio. Central to this evolution is the integration of advanced technologies such as Artificial Intelligence (AI) for credit scoring, biometric identification systems (Face ID and palm-based payments), and blockchain for secure transactions. Furthermore, the research examines the rise of "digital-only" banks and the expansion of payment infrastructures, such as QR codes and the HUMO system, which have democratized financial access across both urban and rural areas. The article concludes that while challenges regarding cybersecurity and digital literacy persist, the strategic implementation of regulatory sandboxes and open banking initiatives positions Uzbekistan as a burgeoning fintech leader in Central Asia, with the potential to significantly contribute to national GDP growth through enhanced productivity and financial inclusion.