THE IMPACT OF DIGITAL PAYMENT SYSTEMS DEVELOPMENT ON THE BANKING SECTOR: A COMPARATIVE ANALYSIS OF CENTRAL ASIAN COUNTRIES

Ergasheva, Aziza, Oltinov, Rustam

Innovation science and technologiy · 2025-yil

Annotatsiya

This study investigates the impact of digital payment systems development on banking sector performanceacross five Central Asian countries—Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan—using paneldata spanning 2015–2024. The rapid expansion of mobile payment technologies, electronic banking platforms, andfintech innovations has significantly transformed the financial services landscape in the region, raising essential questionsregarding the adaptation of traditional banking institutions to digital transformation. Using a comprehensive econometricframework, including fixed and random effects models, difference-in-differences estimation, and dynamic panel analysisthrough the system GMM estimator, the research examines the relationship between digital payment adoption, bankprofitability, credit portfolio dynamics, and financial inclusion. The empirical results indicate that mobile payment volumegrowth positively affects total banking revenues, demonstrating complementarity rather than substitution with traditionalbanking services. Difference-in-differences estimation based on the staggered introduction of national digital platformsreveals significant improvements in financial inclusion, with treatment effects ranging from 12% to 18%. Dynamic panelestimations confirm the persistence of digital transformation effects and the existence of cross-country heterogeneity drivenby initial conditions and regulatory environments. The Hausman test favors fixed effects, underscoring the importanceof controlling for unobserved country-specific characteristics. The findings highlight the transformative potential of digitalpayment infrastructures in fostering banking sector development and financial deepening in transition economies andstress the need for regulatory frameworks that ensure risk management and equitable access to digital financial services

Maqola ma’lumotlari
MualliflarErgasheva, Aziza, Oltinov, Rustam
JurnalInnovation science and technologiy
Nashr sanasi2025-11-01
Jild1
Son11
TilIngliz
DOI10.5281/zenodo.17777056

Kalit so‘zlar

digital payments; mobile banking; fintech; financial inclusion; panel data; difference-in-differences; Central Asia.

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