SQB Is Building a Digital Bank for Small Businesses

Digital transformation in the country’s banking sector is progressing steadily. The strategies approved by the President of the Republic of Uzbekistan - the Banking System Reform Strategy for 2020–2025 and the “Uzbekistan–2030” Strategy - identify the digitalization of financial services, increased transparency, and improved efficiency as the key drivers of sectoral development.

Based on these strategic documents, banking infrastructure is being modernized, and advanced, secure, and customer- centric service models are being introduced.

These changes, in turn, are fueling growing demand for innovative services amid rising household incomes and the rapid development of e- commerce. In particular, simplifying operational processes and transitioning them to digital formats in the small and microbusiness segment has become an urgent necessity.

Within the framework of reforms implemented under the leadership of the Head of State, Uzpromstroybank (SQB) has launched the development of a modern digital banking platform specifically focused on this segment. The objective is to provide entrepreneurs with convenient, fast, and bureaucracy- free financial services.

Commenting on these strategic changes and ongoing initiatives, Aziz Akbarjonov, Chairman of the Management Board of SQB, noted:

“Indeed, in recent years, large- scale efforts have been undertaken in Uzbekistan to integrate banks’ business models into the international financial community.

In particular, measures implemented by the Central Bank of the Republic of Uzbekistan to improve corporate governance, strengthen financial stability, and introduce modern risk- management standards have created new growth opportunities for commercial banks.

Special emphasis has been placed on digitalization, the practical application of artificial intelligence technologies, and the enhancement of cybersecurity. These initiatives have facilitated the widespread adoption of innovative solutions across the sector and have become a decisive factor in ensuring the sustainable development of the banking system and in building a modern, secure financial services ecosystem for customers.”

The profound changes taking place at SQB are a clear reflection of these transformation processes. In cooperation with the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and KPMG International, the bank is implementing a multi- stage transformation program. This program has enabled SQB to restructure its corporate governance in line with international standards, strengthen financial resilience, and consistently optimize internal processes.

Today, SQB is not only one of the country’s leading commercial banks but has also further strengthened its position as a reliable financial partner for businesses and investors. Performance indicators across corporate and retail segments continue to grow steadily, and the bank consistently maintains its position among the top three banks in Uzbekistan in terms of assets, capital, deposit volumes, and loan portfolio size.

As of October 1, 2025, the number of active clients exceeded 1.16 million, while the Net Promoter Score (NPS) reached 71.7%. The number of SQB Mobile users amounted to 2.464 million, representing a 1.5- fold increase year- on- year. Meanwhile, the SQB Business user base surpassed 42,000, demonstrating a 2.8- fold growth.

The steady expansion of SQB Business is primarily driven by the widening range of digital services tailored to the needs of legal entities. The mobile application designed for entrepreneurs has gradually introduced lending services, account opening for sole proprietors, tariff package management, and other advanced digital solutions.

The bank’s green loan portfolio reached USD 672.3 million, growing by 20% over the year. During the same period, approximately UZS 7.5 trillion in loans were extended to small and medium- sized enterprises, with growth in this segment reaching 1.8 times.

It is worth emphasizing that the reforms underway are supported by the dedication, initiative, and continuous development of the bank’s professional team. On this basis, digital solutions are being actively implemented, internal business processes are being refined, and a service model focused on customer needs is being formed.

- Mr. Akbarjonov, what factors led to the bank’s decision to issue AT1 bonds?

- In recent years, Uzbekistan has entered a new stage of economic and financial development. The reforms implemented under the leadership of President Shavkat Mirziyoyev have fundamentally transformed not only the country’s economic framework but also the banking system.

The decisions adopted in 2017 to liberalize the foreign exchange market opened broad opportunities for external economic relations and helped establish a transparent and reliable environment for foreign investment.

It was under these renewed macroeconomic conditions that SQB, as a bank with advanced corporate governance practices, began implementing its strategy of accessing international capital markets. In 2019, the bank successfully placed USD 300 million in Eurobonds on the London Stock Exchange, and in 2024 it issued bonds denominated in U.S. dollars and Uzbek soums under Reg S and Rule 144A formats. These transactions positioned SQB as a credible participant in global financial markets.

This experience enabled deeper integration into market mechanisms. The decision to introduce AT1 instruments can be viewed as a logical continuation of this phased transformation - a consistent step toward incorporating advanced international capital instruments into domestic banking practice.

AT1 bonds are widely used in the global banking sector as a modern instrument to strengthen capital adequacy, enhance resilience to risks, and support a sustainable financial policy.

For SQB, the issuance of AT1 bonds further confirms the bank’s openness to innovative financial solutions and its strong focus on long- term capital sustainability. Through these instruments, we are not only reinforcing our capital base but also ensuring stable financing for strategic priorities - particularly the development of digital infrastructure required to support small and microbusinesses.

It should be noted that such strategic decisions and the implementation of complex financial instruments are the result of in- depth analysis and coordinated efforts by a highly professional team. This collective expertise enables the bank to anticipate market changes and prepare for them in a systematic manner.

As is well known, the 1% simplified tax regime, scheduled to be introduced in 2026, will stimulate the emergence of tens of thousands of new entrepreneurs. These businesses will require a reliable digital bank. By combining capital strengthening with the development of digital infrastructure, we aim to create a modern business platform for entrepreneurs.

- Why has SQB made a strategic shift toward small and microbusinesses at this stage?

- Digitalization in retail banking has already reached a very high level. Customers regularly use online payments, transfers, and other banking services with just a few clicks.

However, small and microbusinesses do not yet fully benefit from such convenience. They still face challenges related to excessive documentation, queues, and repeated in- person visits.

Therefore, we have begun transferring the best practices of retail banking to the small and microbusiness segment. Entrepreneurs will be able to open accounts, connect acquiring services (POS terminals), obtain online loans, and manage all operations digitally via mobile platforms.

Creating a digital ecosystem for this segment enhances market efficiency and enables businesses to operate faster and more effectively.

- How is SQB updating its service model?

- We are moving away from the traditional “service on request” model and introducing a partnership- based approach.

Key focus areas include:

• Unified service ecosystem: digital channels, contact centers, and relationship managers are being integrated into a single platform. A dedicated call center for legal entities will be launched this year.
  
  

• Unified quality control system: consistent high service standards are being implemented across all channels.
  
  

• Individualized approach: major clients are assigned dedicated relationship managers.
  
  

• CRM system: all customer data is consolidated within a single centralized system.
  
  

- More than a month has passed since the project launch. What are the first results?

- A new sales model has been launched, and the results have exceeded expectations. In a short period of time:

• telemarketing, agent- based, and direct sales channels have been established;
  
  

• the number of documents required to open an account has been reduced from 10 to 1;
  
  

• a dedicated service mechanism has been introduced for clients engaged in foreign economic activity (export–import);
  
  

• a backlog of business requirements and product initiatives has been formed;
  
  

• a unified data repository and dashboard system have been launched.
  
  

These developments form the foundation of a data- driven digital management model, where decisions are based on accurate and timely information.

At the same time, a marketing strategy has been developed, and reforms and innovations are being communicated openly to the public.

The SQB Business mobile application and platform are being positioned as a leading banking solution for small and microbusinesses nationwide. The emergence of the bank’s first business partners already demonstrates strong market demand, trust, and interest.

- What does the transformation in the corporate and mid- size business segments involve?

- In this segment, SQB has elevated its service model to a new level by restructuring all processes around the customer journey. Each company is assigned a dedicated relationship manager, and alongside standard services, tailored solutions are offered based on specific business needs.

API integration has been implemented to connect directly with corporate clients’ information systems, automating settlements and daily operations while saving time and resources. The upgraded corporate internet banking platform has further simplified customer processes through online deposits, corporate card management, and mass payroll card issuance.

A key development for mid- size businesses was the execution of the first transaction in Saudi riyals, enabling fast and secure settlements with Gulf countries.

Overall, SQB has built a customer- centric, digital, and efficient service ecosystem for corporate and mid- size businesses. This approach supports business growth while strengthening the bank’s long- term stability.

- In working with clients, which factor do you consider more important: reach or loyalty?

- Both are important, but loyalty is the priority. Reach can be expanded quickly through growth initiatives or investment, whereas customer trust is built over many years and represents a core competitive advantage.

In the digital era, this becomes even more critical. Clients increasingly interact with banks through digital services rather than physical branches. If trust and convenience are ensured at every stage, long- term partnerships naturally follow.

- What new developments can we expect in the near future?

- By the end of the year, an internet banking platform will be launched, followed by a mobile application early next year. These solutions will further simplify daily operations for entrepreneurs.

- How do you view the outlook for Uzbekistan’s banking sector over the next 3–5 years?

- The digital model will dominate. The role of physical branches will diminish, while service speed and convenience will become the primary competitive criteria.

SQB has set the goal of becoming the country’s leading digital business bank for entrepreneurs. After all, the bank of the future is a bank on a smartphone. Achieving this goal will be supported by the strength and unity of our team, as well as the trust and loyalty of our customers.

- Thank you for an insightful conversation.

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