Uzbekistan’s only mobile-exclusive bank, TBC Bank, secures a fresh equity investment of $38.2M

Uzbekistan’s only mobile-exclusive bank, TBC Bank Uzbekistan, owned by London Stock Exchange-listed TBC Bank Group, has secured a fresh equity investment of $38.2 million. The bank plans to expand its presence in Uzbekistan and introduce new financial products.

The latest funding round was led by TBC Bank Group with an investment of $23 million, and shareholders European Bank for Reconstruction and Development (EBRD) and the World Bank’s International Financial Corporation (IFC) each contributed $7.6 million.

After establishing a strong presence in Georgia, TBC Bank Group expanded into Uzbekistan in 2019, launching TBC Group Uzbekistan. This entity introduced the mobile-only bank in 2020, capitalizing on Uzbekistan’s growing digitization efforts. With no physical branches, TBC Bank Uzbekistan leverages the country’s high smartphone penetration (70%) and internet penetration (77%) to provide a range of banking services through its mobile app.

Oliver Hughes, head of international business at TBC Group, noted that prior to TBC’s entry, Uzbekistan lacked mobile banking apps. Now, TBC leads the field in digital banking innovation in the country. The mobile app allows customers to open accounts, and access services such as cash loans and deposits, eliminating the need for physical branch visits.

TBC Group Uzbekistan also owns Payme, a digital payments app, and Payme Nasiya, a Sharia-compliant credit business. The bank plans to integrate features from these platforms, offering tips on local events, entertainment, and more through its app.

In the coming months, TBC Bank Uzbekistan will introduce new financial products, including credit cards and insurance. The bank also aims to incorporate AI, developing a voice assistant for banking services.

With this investment, TBC Group Uzbekistan intends to further capitalize on the opportunities in Uzbekistan. The bank achieved profitability at the end of 2022 and recorded a net profit of $23 million in 2023, mainly from Payme. As of March 2024, the bank had 4.8 million unique registered users and 1.2 million monthly active users.

Vakhtang Butskhrikidze, CEO of TBC Bank Group, expressed optimism about the bank’s future, emphasizing the growth potential in Uzbekistan. By 2025, TBC Group Uzbekistan is projected to generate $75 million in net profit, with a significant contribution from TBC Bank Uzbekistan.

Neil McKain, Country Manager for Uzbekistan at IFC, and Andi Aranitasi, Head of Uzbekistan at EBRD, both highlighted the bank’s potential to contribute to economic growth and financial inclusion in the region.