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Uzbekistan’s Financial Landscape: A Study of Access, Usage, and Literacy
A recent survey conducted in Uzbekistan has shed light on the country’s financial landscape, providing valuable insights into access to credit, insurance services, money transfers, and mobile financial services. The study, which gathered data from 2,480 respondents, also explored financial literacy, capability, and habits.
Access to Credit and Financial Services
The survey found that in 2020, 31% of Uzbekistan’s population accessed credit from formal sources, while 57% relied on informal sources. The top reasons for not using loan or credit services included:
- Lack of collateral
- High interest rates
- Fear of debt
When borrowing, respondents cited financial emergencies, business needs, and household expenses as primary motivations.
Insurance Services
The study revealed that insurance services were more commonly used among higher-income households, with 23% of those earning above the median income reporting usage compared to 13% of those earning below the median. The most popular types of insurance products were:
- Health insurance
- Life insurance
Money Transfers and Mobile Financial Services
A significant portion of respondents (55%) used money transfer services in the past year, with 30% using mobile financial services. The majority of these users reported sending funds to family or friends for various purposes.
Financial Literacy and Capability
The survey assessed financial literacy by asking respondents about their knowledge of financial products, services, and institutions. The results showed that:
- Only 45% of respondents demonstrated a good understanding of financial concepts
- 34% had some knowledge
- 21% were financially illiterate
Additionally, the study found that financial capability was higher among those with:
- Higher education levels
- Higher income
Budgeting and Financial Habits
The survey revealed that:
- 62% of respondents kept to a budget plan
- 45% reported consulting with family or friends for financial advice
- 75% reported being satisfied with the quality of bank account services
Financial Institutions and Trust
The study found that trust in financial institutions was relatively high, with 71% of respondents reporting a high degree of trust in banks. However, only 45% of respondents were aware of unsafe activities when using cards and digital payments.
Conclusion
This comprehensive survey provides valuable insights into Uzbekistan’s financial landscape, highlighting areas of strength and weakness. The findings can inform policy decisions aimed at improving financial inclusion, literacy, and capability in the country.