TBC Bank Uzbekistan Secures $37M Funding for AI-Driven Expansion and Product Innovation

TBC Bank Uzbekistan Secures $37M in Fresh Funding

TBC Bank Uzbekistan, the country's largest digital bank, has successfully raised $37 million in a new funding round led by its parent company, TBC Group 1

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. This investment comes just five months after a previous $38.5 million round, highlighting the rapid growth and potential of the Uzbek digital banking market 2

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Expanding Digital Presence and User Base

TBC Uzbekistan has made significant strides in expanding its digital footprint across the country. As of September 2024, the bank boasts 17 million unique registered users, representing over 40% of Uzbekistan's population 1

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. This milestone cements TBC Uzbekistan's position as the leading digital banking ecosystem in Central Asia.

Innovative Product Launches and Partnerships

In 2024, TBC Uzbekistan focused on diversifying its product suite and entering new market segments. Key launches include:

1. Salom debit card: Positioned as TBC's flagship daily banking product
2. Osmon Card: The bank's first revolving credit product
3. TBC Business: Uzbekistan's first fully digital banking service for SMEs and entrepreneurs 1

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The bank has also entered strategic partnerships with Visa and Mastercard to enhance its service offerings 1

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AI-Driven Innovation and Technology Integration

TBC Uzbekistan is leveraging artificial intelligence to improve customer experience and operational efficiency:

1. Proprietary speech tech stack: Developed in-house for enhanced customer interactions
2. AI-powered agents: Handle payment reminder calls for loans up to 30 days overdue, managing over 40% of early-stage delinquencies in Q3 2024 1

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Oliver Hughes, head of international business at TBC Group, revealed plans to expand AI developments further:

"We're building out vertical by vertical into different products. A material portion of the money raised will be going to the AI projects." 2

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The bank has hired AI experts who previously worked on Yandex's AI assistant Alice to develop a finance-specific language model based on Meta's Llama, tailored for local languages and nuances 2

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Future Growth and Product Expansion

With the new funding, TBC Uzbekistan aims to:

1. Launch an in-house insurance offering in 2025
2. Introduce a buy-now-pay-later solution
3. Develop an SME lending product
4. Enhance the Salom debit card with new benefits 2

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The bank projects a net profit of $75 million in 2025, up from $27 million in the first nine months of 2024 2

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Market Position and Competition

While Uzbekistan's banking sector is not yet highly competitive, the country's growing digital base and young population are attracting interest from foreign players. Hughes acknowledges the changing landscape:

"It's not super competitive today, but it will certainly become more and more competitive as we go along over the next few years." 2

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As TBC Uzbekistan continues to innovate and expand its services, it aims to maintain its leading position in the evolving Uzbek digital banking market.