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PROSPECTS FOR THE DEVELOPMENT OF ONLINE FINANCIAL SERVIES IN UZBEKISTAN
Umarova K.A., Hamdamov Sh.R., Tashkent State University of Economics, Tashkent, Uzbekistan
E-mail: umarovakomola1992@gmail.com
Abstract. Currently, information flows play an important role in the implementation of remote bank account management systems used in the banking practice of the Republic of Uzbekistan. Measures are being taken to further expand the current situation of providing remote banking services in the banking system of Uzbekistan.
The article examines the development of remote banking services, its problems, and the author's relationship with the development of remote banking services in commercial banks.
Key words: Internet banking, phone banking, mobile banking, mobile application, SMS banking, mobile phone, mobile internet, fixed broadband internet.
Introduction
The last decade have witnessed significant changes in the implementation of financial services and their practical application. Technological changes have caused changes in the banking sector.
Due to the widespread use of the Internet and mobile technologies, the banking services market has undergone radical changes.
Due to the increasing number of electronic channels, e-banking services are developing and this situation is opening the doors of great opportunities for customers.
Due to the development of information and communication technologies (ICT) and their use in the country's economy, the country's economy is developing rapidly.
Szajna, 1996; Ramayah, 2005 stated that according to the results of the research, as a result of reducing the use of technology, the productivity and productivity of the population will be negatively affected. Due to the impact of technological innovations, banking services are developing rapidly. At the beginning of the 21st century, banks began to be used as communication channels. Devlin, 2000; As mentioned by Shi Yu, 1995, by the 1980s, ulat was used as a telephone connection, and in the 1990s, the use of internet banking and mobile banking services was introduced. At this point, the
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commercial banks of the Republic of Uzbekistan are offering many opportunities to customers thanks to their remote banking services.
In addition, in January 2018, the joint-stock commercial bank "Hamkorbank" with foreign capital offered its customers the "Hamkor mobile" application for online deposit registration. "Hamkor mobile" service can be used by getting a Hamkorbank plastic card in national currency. Thanks to the use of the mobile application, customers will have the opportunity to see the status of your online deposits and realtime interest monitoring. (Mamadiyarov, May 2018).
As a result of the rapid development and change of technology, the quality of life of people improves and makes a great contribution to the development of the economic system. (Changchit and Chuchuen, 2016).
According to the decree of the President of the Republic of Uzbekistan dated January 9, 2018 "On measures to fundamentally improve the activities of the Central Bank of the Republic of Uzbekistan", the development of an effective information exchange system was carried out by providing remote information exchange of commercial banks. Due to the rapid development of payment services in banking services, the quality of remote services provided by commercial banks will improve and opportunities will be created for new modern services.
Literature review
(Laukkanen and Lauren, 2005; Aderonke and Charles, 2010). As Atulkar and Kesar, 2017) noted, the main factor for the dynamic growth of the number of consumers in financial services in the conditions of the market economy is the centralization of consumers in a wide range and the observance of the mobile lifestyle of consumers. In addition, as a result of using mobile devices, users are provided with server connection, authentication, authorization, mobile payment and transaction confirmation services (Kim and Mirosmonov, 2010). According to (Dineshwar and Steven, 2013), banks will be able to compete with other banks as a result of providing mobile banking service to customers and promoting it to consumers. This requires banks to provide modern services to consumers (Kim, G., Shin, B., Lee, H.G., 2009). Especially in developing countries, the economic development of banks and financial services plays an important role in the use of mobile communication as the main communication channel (Agwu and Carter, 2014). But now the financial market is provided with internet banking, phone banking, mobile banking, as well as other service delivery channels. (Lee, S.-The C., Im, K.H., 2015). The banking system of Uzbekistan also offers remote banking services such as internet banking, SMS banking, mobile banking and "bank-client" to customers (Mamadiyarov, Z. February 2018). The advantage of mobile banking is that it can provide services to consumers anywhere and at any time, and it further accelerates the productivity of these services (Govindarajan et al., 2014). Today is the day
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The beginning of a new stage of development of banking services is inextricably linked with this decision. In order to develop the way of life of the population, a number of requirements have been introduced to expand the population's access to banking services, to increase the population's awareness of household services, to increase the level of financial literacy of the population, and to increase the possibility of using banking services. In addition, important tasks were set for the development of new banking technologies and types of remote services (Decree, 2018). Today's requirement is that the quality and accuracy of information technology services used by commercial banks plays an important role. Currently, traditional banking services are replaced by innovative remote banking services. Due to this, customers have the opportunity to use fast and convenient banking services.
Results
It should be mentioned that according to the decision of the Cabinet of Ministers of the Republic of Uzbekistan on June 12, 2007, the implementation of the "bankclient" program and the internet banking service was created in our country ("Further improvement of payments in the implementation of electronic commerce"). "Decision on measures"). In 2007, only corporate clients had the right to use the Internet banking service, and later individuals also had this opportunity. (http://bank.uz). Since 2008, the "bank-client" program has also been used in the activities of commercial banks.)
The use of the internet banking system in Uzbekistan was implemented and introduced by the joint-stock innovative commercial bank "Silk Road" from March 1, 2007. That is, due to the use of the "Silk Road Online" system, customers were provided with the opportunity to perform several types of banking operations on their respective deposit accounts. Previously, only legal entities were allowed to use this opportunity, and clients were used, but now individuals also have the right to use this type of service. For example, despite the fact that at the beginning of 2007, the number of customers using the bank's internet banking service was 60, by the end of the year, their number increased to 550. As of January 1, 2019, 141,865 customers (http:// cbu.uz) are using this service on a large scale. Thanks to this decision, a new stage of banking services has developed.
A number of important tasks have been introduced to develop the population's opportunities to use banking services, to increase the population's awareness of household services, to increase the level of financial literacy of the population, to improve the skills of using banking services, to expand the scope of new banking technologies and remote services, in order for the population to live comfortably. by the bank. (Decree, 2018).
Based on this decree, joint-stock company "KDB Bank Uzbekistan" offered its customers a new service and placed it on its website, and soon the commercial joint-stock bank Xalq of the Republic of Uzbekistan also offered remote banking services to its customers. Currently, the demand for this type of service is increasing.
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A number of commercial banks in our republic, namely joint-stock commercial bank "HAMKORBANK", joint-stock commercial bank "Mikrokreditbank" and several other banks have introduced such a service. First of all, former "Samarkand" ADB was one of the first to offer internet banking services for individuals in the banking system of Uzbekistan, and in May 2009, "Samarkand" JSCB established a new service on the Internet called sam.online and "Mobile introduced banking" services. Based on it, bank clients had the opportunity to make payments for mobile and Internet providers through mobile phones (http://www.finance.uz).
Its clients receive information about long-distance, mobile and landline telephony services, Internet providers, utility payments, online stores, transfer funds to legal entities and individuals, transfer financial statements to the bank. transfer, transfer funds to their accounts, bank clients were also provided with the opportunity to remotely select bank deposits and deposit funds.
JSCB "Aloqabank" clients had the opportunity to use the second internet banking service for individuals. Later, other commercial banks of our country introduced and developed remote banking services (internet banking, mobile banking and SMS banking) for their individuals.
There is an increase in the demand for the use of mobile phones on the part of the population, and the introduction of mobile banking (WAP-banking), SMS-banking and other mobile banking services with extensive use of telephone capabilities in banks. Due to the development of the National Bank system, taking into account that the banks are expanding their customers territorially, work on the continuous improvement of remote banking services is being carried out throughout the republic. Thanks to this, the possibility of further strengthening of market relations will increase.
The number of bank plastic cards to December 31, 2011 amounted to 7 million 909 thousand, then in the same period of 2016 year it amounted to 19 million 523 thousand. The number of plastic cards of the bank in 2017 amounted to 19 million 226 thousand. In 2018, the number of bank plastic cards has dropped to 17 million 686 thousand due to the fact that money transfers from "Duet" cards are suspended from January 1, 2018. In general, the number of bank plastic cards in 2018 has increased 2.2 times compared to 2011.
The number of customers registered in the National Information base of bankers amounted to 1159890 units in 2011, reached 1880634 units in January 1, 2019. That is, the number of depositors in this period increased by 1.62 times. The number of customer accounts registered in the National Information base of the bank accounts was 3926356 units in 2011 and each customer accounted for 3.4 units, in 2018 the number of accounts 7263621 units and each customer accounted for 3.9 units. In 2018, compared to 2011, the number of customer accounts registered in the National Information base of bankers increased by 1.85 times.
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Table 1
Number of users of remote banking services in Uzbekistan (December 31 * The number of registered bank depositors in the national database
2018/2011
№ Types 2011 2014 2015 2016 2017 2018 years
year year year year year year Change (in March)
1. Number of customers * 1159890 1432849 1515004 1638673 1755492 1880634 1,62
Number of issued
bank cards
2. (thousand pieces) 7909 15215 16316 19523 19226 17686 2,2
3. Users of remote banking services
number 24545 534800 1061022 2042111 4453240 7959107 324,3
3.1. Legal Entities and Business Owners
number 14241 62227 81492 135629 227879 359770 25,3
Percentage of de- 1,2 4,3 5,4 8,3 13,0 19,1
positors
3.2. Individuals
number 10304 472573 978530 1906482 4225361 7599337 737,5
Percentage of de- 0,1 3,1 6,0 9,8 22,0 43,0
positors
Source: Report of the Central bank of the Republic of Uzbekistan for 2018, (2019) http://cbu.uz
The number of remote banking service users reached 24545 in 2011 and reached 7959107 as of December 31, 2018. The number of users of remote banking services in 2018 has increased by 324.3 times compared to 2011. The sharp increase in the number of remote banking services is driven by the fact that the number of individuals using the services of remote banking services has increased to 14,241 in 2011, The number of individual users in these services increased by 3 times in 2011 to 10,304, up to 759,337 as of December 31, 2018, and by 2018 it was 737.5 times more than in 2011 (Table 1).
The number of registered clients in the national database of bank depositors in 2011 was 1159890, from them 14241 (1.2%) - legal entities and individual entrepreneurs using remote banking services, as of December 31, 2018, the number of registered clients of the bank in the national database has reached 1880634 and 359770 of them are legal entities and individual entrepreneurs using remote banking services.
If the number of bank cards issued into circulation in 2011 amounted to 7909 thousand units, of which 10304 were physical persons, that is, 0.1 percent were users of remote banking services, and in the case of December 31, 2018 the number of bank
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cards issued into circulation reached 17686 thousand units, of which 7599337 were physical persons, that is, 43 percent. That is, the importance of mobile applications in the management of personal plastic cards among individuals is evidenced by the fact that they are increasing day by day.
Alternatively, the number of mobile users worldwide reached 2.9 billion in 2016, 3.3 billion in 2017, 3.7 billion in 2018 and 4.4 billion by 2022 should be recognized separately (https://www.strategyanalytics.com).
In our country, too, according to the state of January 1, 2013, the total number of internet users amounted to about 6070,1 thousand units, and in 2017 Year 1 April went to 14756.9 thousand units, by June 30, 2018 15453.2 thousand units by 2019 Year 1 January 20000.0 thousand units should be noted. At the same time, one of the new technologies that is convenient for users is the use of the internet system through this mobile phone. In particular, the number of mobile abonents in the Republic of Uzbekistan has reached 22.8 million by 1 January 2019, of which the number of mobile internet users is more than 15 million, which in turn indicates the greater use of mobile phones in Internet access. All users of the internet and mobile communication are prospective customers for banks and show the convenient aspects of remote services: attracting these potential customers to the bank through it depends only on the behavior of this bank. Because a natural person who has deposited his funds in a bank can not only receive information about his account through remote banking services, but also make payments for the use of mobile communication, internet, television, utility services and many other services (1-picture).
However, further development of remote banking services has a number of factors. One of them is low internet speed. In particular, in Uzbekistan, the speed of mobile internet is 8,80 Mbps and fiber-optic Internet speed - 11,31 Mbit / sec. This indicates a low internet speed in the use of mobile banking and Internet banking. Indeed, according to estimates from the end of 2017, Uzbekistan was among the worst in the world with internet speeds. The speed of the mobile Internet was 6.47 Mbit / sec, and fiber-optic Internet - 5.81 Mbit / sec.
73.93 megabits per second to the highest rate of Internet access over mobile devices. Norway is the second with a figure of 70.29 Mbit / sec, with the top three with a 65.68 Mbit / second Canadian coverage.
Next places in the Qatar state is 59.05 Mbps, the Netherlands - 56.87 Mbps, the Australian state - 56.70 Mbps, Singapore - 54.96 Mbit / sec, while in South Korea -52.53 Mbps with a 50.12 Mbit / sec rate in Denmark and 49.99 Mbps in Belgium, with the world's fastest mobile internet speed. At the same time, Uzbekistan ranked one of the lowest in terms of mobile internet speeds with 129th place and 8.80 Mbps.
19,9
20,6
■ 2013 ■ 2014 ■ 2015 2016 ■ 2017 ■ 2018
Fig. 1 Dynamics of the number of mobile subscribers in Uzbekistan (mln.)
Source: http://ccitt.uz/uz/ - Information on the official website of the ministry for development of Information Technologies and communications of the Republic of Uzbekistan
As of January 2019, the Singapore state took the lead in the optical fiber internet speed and its speed was 194.04 Mbps. At the same time, the state supports the introduction of large-scale and broadband technologies, with higher population density than in other countries and about 90% of the population in the country have access to the Internet. Hong Kong has 169.40 Mbit / sec, Iceland 159.30 Mbit / sec, Monaco 152.02 Mbit / sec, Romania 129.82 Mbit / sec, South Korea 129.20 Mbps, Hungary 116.09 Mbit / s , United States 111.65 Mbit / sec, Sweden 111.48 Mbit / s and Switzerland 108.85 Mbit / s. Uzbekistan is one of the lowest in terms of fiber- optic internet speeds with 131 points and 11.31 Mbit / sec. (3-picture).
Conclusion
Commercial banks ought to explore systems that supply financial institutions with data via the usage of advanced technologies, practical software interfaces (API), or the possibilities of a new payment system. As in the prospect, all banking operations solutions are firmly linked with accurate data and advanced analysis. Nonetheless, consumers expect banks to make experiments by conducting research on this. And the fact that the result is beneficial to both sides, suggests that these studies are relevant.
Currently, we have made sure that there are several issues that hinder the creation of innovative kinds of remote banking services in commercial banks
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operating in the national banking system of our country, their introduction into practice, the level of quality of existing types of banking services and the enhancement of marketing activities in them. Owing to this the shortage of experience in the segmentation of the remote banking services market in commercial banks, the communication between commercial banks and customers, the quality of internet and communication has not been uniformly well established across the country, and in some remote areas they are not available, lack of the necessary infrastructure to advance and implement modern banking services, as long as the staff of commercial banks do not correct such cases as lack of highly qualified specialists in the marketing field and inadequate advertising and explanatory work of remote banking services among the population, population growth will continue to be one of the difficult issues to popularize the traditional banking services.
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