REDUCING TRANSACTION COSTS AND ENSURING TRANSPARENCY THROUGH DIGITALISATION OF LENDING PROCESSES IN UZBEKISTAN

This article investigates the potential of digitalising lending processes as a systemic mechanism for reducing transaction costs and enhancing transparency in Uzbekistan's commercial banking sector. Drawing on data from the Central Bank of Uzbekistan, the Agency of Statistics, and the World Bank Global Findex Database, the study constructs a multi-channel theoretical framework linking digital financial technologies with poverty reduction outcomes. The analysis covers the period 2019–2023 and integrates quantitative assessment of digital lending indicators with comparative institutional analysis of international models, including India's Account Aggregator Framework, Kenya's M-Shwari system, and Estonia's X-Road digital infrastructure. Empirical findings reveal that digital lending channels reduce per-loan transaction costs by 42–58 per cent relative to branch-based processing, while AI-driven alternative credit scoring increases approval rates among previously unbanked borrowers by 31 percentage points without raising non-performing loan ratios. The article further demonstrates that blockchain-based contract management measurably reduces information asymmetry between lenders, borrowers, and supervisory authorities. Policy recommendations address the integration of digital lending tools into Uzbekistan's mahalla-based social protection infrastructure and propose a phased digitalisation road map aligned with the Banking System Reform Strategy 2020–2025.