Digital Transformation of the Financial Sector in the Transition to an Industrial-Innovative Economic Model in Tajikistan (Economy of Tajikistan)

Summary

• Global fintech investments reached $33.7 billion in 2024, while the average deal size in innovative financial services for banking increased by 70% to $8.5 million.p.4
• In 2024, US fintech start-ups attracted $3.9 billion across 293 deals, while European start-ups secured $1.9 billion through 179 deals.p.4
• Tajikistan's bank credit to the private sector stood at 11.6% of GDP in 2023, trailing behind Hong Kong at 248.5% and China at 189.6%.p.7
• Retail consumer credit in Tajikistan expanded significantly, rising from 67.6 million somoni in 2019 to 11 565.4 million somoni in 2024.p.8
• The share of non-performing loans in Tajikistan's banking system dropped from 47.6% of total loans in 2016 to 7.1% in 2024.p.9

Key insights

1. According to McKinsey and BCG studies, banks require an average of 2 to 4 years from initiating digital transformation to achieve sustainable financial results.p.6
2. Only two financial institutions in Tajikistan, Bank Arvand and Alif Bank, utilize the complete range of modern digital banking tools.p.6
3. Tajikistan's private sector credit ratio of 11.6% of GDP is more than double behind Kazakhstan and over 16 times lower than China's 189.6%.p.7
4. Between 2019 and 2024, the share of industrial loans in Tajikistan's total banking portfolio dropped from 87.4% to 12.4%.p.8
5. The ratio of liquid assets to short-term obligations in Tajikistan was 78.3% in 2024, remaining more than double the National Bank norm of 30%.p.9