Uzbekistan Urban-Rural Banking Gap Widest at Account Opening Stage

Tashkent, Uzbekistan (UzDaily.uz) — The primary disparity in financial inclusion across Uzbekistan occurs during initial entry into the banking system, with only 21 percent of adult rural residents holding a bank account compared to the 86 percent national average, according to the Central Bank of Uzbekistan's pilot financial inclusion index.

The overall financial inclusion score for rural and remote areas stood at 49 points out of 100.

Beyond the 65 percentage point gap in basic account ownership, rural residents utilize savings products less frequently. Only 1 percent of rural residents hold a savings or time deposit account, compared to the national average of 4 percent.

However, the Central Bank noted that activity levels among existing account holders in rural areas align closely with national figures. Inactive bank accounts comprise 32 percent of total accounts among the rural population, compared to the 34 percent national average. This indicates that once rural residents gain access to financial services, they utilize them at rates comparable to urban residents.

A similar trend was observed within the small and medium-sized enterprise (SME) sector, where credit accessibility for rural businesses matched or exceeded national averages across specific metrics. The regulator concluded that the main obstacle in rural areas is initial access to financial services rather than engagement.

To address the disparity, the Central Bank outlined priorities including expanding primary account ownership and everyday financial channels for rural residents, while improving service quality and digital access for rural enterprises.