Uzbekistan’s solely mobile-exclusive financial institution, TBC Financial institution Uzbekistan, owned by London Inventory Change-listed TBC Financial institution Group, has raised $38.2 million in a contemporary fairness funding. It plans to broaden its native presence within the nation and introduce new monetary merchandise, as nicely.
TBC Financial institution Group has led the most recent funding in TBC Financial institution Uzbekistan by infusing $23 million, whereas shareholders European Financial institution for Reconstruction and Improvement (EBRD) and World Financial institution’s Worldwide Monetary Company (IFC) have participated within the spherical by investing $7.6 million every.
After serving prospects in Georgia, TBC Financial institution Group determined to broaden outdoors that nation’s borders in 2019 and located Uzbekistan as its first worldwide market. The financial institution began its Uzbekistan operations in 2020 by way of a separate entity, TBC Group Uzbekistan, which launched the mobile-only financial institution after its debut, with no bodily branches within the nation. The plan was to leverage Uzbekistan’s growing digitization effort and foresee enterprise development within the nation, which has the largest inhabitants after Russia and Ukraine within the area — the second-largest amongst all of the Commonwealth of Unbiased States international locations — and has upright financial and socio-demographics.
“Earlier than TBC got here in, there have been no banking apps in Ukraine … Quick ahead 4 years, many of the banks have gotten a cell app, however TBC is much forward of the sphere,” mentioned Oliver Hughes, head of worldwide enterprise at TBC Group, in an unique interview.
In keeping with official knowledge, Uzbekistan has a 70% smartphone penetration price and 77% web penetration price; 59% of its inhabitants of 37 million is beneath 30 years outdated, making it a viable marketplace for a mobile-specific enterprise.
TBC Financial institution Uzbekistan gives a cell app by way of which prospects can open financial institution accounts and entry providers together with money loans and deposits. This omits the requirement of bodily going to a financial institution department to entry banking.
Hughes advised TechCrunch that a few years in the past, prospects in Uzbekistan usually needed to go to their financial institution and stand in a queue to get any of their banking work performed.
Alongside the mobile-only financial institution, TBC Group Uzbekistan owns Payme, the digital funds app for particular person customers and small companies, in addition to the Sharia-compliant credit score enterprise, known as Payme Nasiya. To broaden its protection, it appears to combine some experiences from these two companies throughout the financial institution or sync them with the financial institution’s operations.
As an illustration, by way of its app, TBC Group Uzbekistan will supply ideas, suggestions and user-generated content material on native occasions, leisure, concert events and journey to offer complementary providers that aren’t strictly financially associated. A few of these options will first arrive on the Payme app however will likely be accessible to the TBC Financial institution Uzbekistan prospects over time.
Equally, Payme Nasiya at present serves Uzbek prospects with its point-of-sale and installment loans. To broaden the credit score enterprise, it’ll introduce e-commerce and offline buy-now-pay-later. That is anticipated to draw extra native companies and finally assist the cell financial institution achieve extra prospects.
Along with the brand new monetary merchandise within the pipeline, TBC Group Uzbekistan plans to convey AI experiences to its cell financial institution. Hughes advised TechCrunch the group has constructed a big language mannequin predominantly utilizing its buyer dataset and is engaged on a voice assistant to ship banking and monetary providers by way of a chatbot built-in inside its app.
Within the fall, TBC Financial institution Uzbekistan will use the contemporary funding so as to add bank cards and an insurance coverage product subsequent 12 months, Hughes mentioned.
The financial institution’s roadmap contains further providers comparable to present accounts, in addition to accounting, offline funds, e-commerce funds and lending particularly for small and medium enterprise prospects, Hughes added.
“This funding will permit us to additional capitalize on the immense alternatives in Uzbekistan, a fast-growing nation with a inhabitants of over 37 million folks the place TBC UZ continues to leverage its development momentum,” mentioned Vakhtang Butskhrikidze, CEO of TBC Financial institution Group, in a ready assertion.
On the finish of 2022, TBC Financial institution Uzbekistan broke even, and 2023 was the financial institution’s first full 12 months of revenue. As of March 2024, the financial institution had a person base of 4.8 million distinctive registered customers. It additionally recorded month-to-month lively customers of 1.2 million within the first quarter of 2024.
Total, TBC Group Uzbekistan, with a registered person base of 15 million customers, reached profitability two years after launch and recorded 85% year-on-year income development within the first quarter of this 12 months. The corporate achieved gross loans of $296 million and deposits of $216 million by way of all three of its subsidiaries. Its web revenue hit $23 million for the monetary 12 months 2023, most of which got here from Payme. Nonetheless, TBC didn’t disclose the cell financial institution’s revenues or earnings.
“TBC UZ’s spectacular development trajectory and progressive method align with our mission to help sustainable financial improvement within the area,” mentioned Andi Aranitasi, Head of Uzbekistan, EBRD.
Hughes mentioned that by 2025, TBC Group Uzbekistan is projected to generate $75 million in web revenue, most of which might come from TBC Financial institution Uzbekistan.
“We’re inspired with the progress TBC UZ has made thus far and stay assured in its potential to contribute to financial development and monetary inclusion in Uzbekistan,” mentioned Neil McKain, Nation Supervisor, Uzbekistan, IFC.
