On May 18, the Central Bank of Uzbekistan announced the start of preparing a regulatory framework for the regulation and supervision of the installment services (BNPL) market. The discussion of new approaches is taking place with the participation of experts from the Asian Development Bank (ADB) and international consultants.
What happened
The regulator is analyzing current business models, contract structures, and international experience. According to the agency, the main goal of the meetings is to eliminate existing legal gaps and define clear operating rules for all participants: banks, non-bank credit organizations, fintech providers, and installment operators.
The working group is focusing on several areas:
- consumer protection and transparent disclosure of terms;
- data exchange with credit bureaus;
- digital customer identification standards;
- security of data storage and processing.
Country and market
Uzbekistan. The CBU, together with international experts, is currently assessing the role of various players in the installment market to prepare specialized documents and close regulatory gaps.
Why it matters
The discussion shows that the regulator has begun systematic work on rules for the BNPL segment. The issue of full-fledged data exchange with credit bureaus is highlighted as one of the key topics on the agenda.
It is likely that the mandatory inclusion of installments in credit histories will require banks to revise their scoring models and help limit the hidden debt burden of users.
What’s next
The CBU has not yet published an official draft of the regulatory document and has not announced the timeline for its implementation. Fintech companies will have to wait for the first drafts to understand exactly how they will need to adapt contracts, marketing materials, and IT systems to the new requirements.