Page 36 - "Green Investments and financial technologies: opportunities and challenges for Uzbekistan" International Scientific and Practical Conference
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“Yashil investitsiyalar va moliyaviy texnologiyalar: O‘zbekiston uchun imkoniyatlar va muammolar” mavzusida xalqaro
                                    ilmiy-amaliy anjuman materiallari to‘plami (Toshkent, JIDU, 2025-yil 7-may)



                  scoring, which may not be clearly classified as banking, insurance, or securities
                  products.

                      •  In the United States, for instance, overlapping responsibilities between the
                         SEC,  CFTC,  and  state  authorities  complicate  licensing  and  compliance
                         processes for FinTechs.
                      •  In Uzbekistan, regulatory innovation is underway, but sandbox frameworks
                         remain underutilised, and there is limited guidance on risk-based licensing.

                  Policy  Recommendation:  Countries  should  establish  integrated  FinTech
                  coordination bodies and adopt flexible regulatory frameworks like the Bali Fintech
                  Agenda  (IMF–World  Bank),  which  encourages  proportionality,  risk-based
                  oversight, and innovation facilitation. FinTech platforms often process vast amounts
                  of personal and financial data. Weak cybersecurity protocols, opaque data-sharing
                  practices, or flawed algorithmic decisions can lead to:

                      •  Identity theft

                      •  Credit discrimination
                      •  Financial loss due to system failure or fraud

                  According to Mahmud et al. (2023), security and data protection concerns were the
                  leading  reasons  for  consumer  distrust  in  FinTech  across  Bangladesh  and  other
                  emerging  economies.  Furthermore,  AI-driven  decisions  in  credit  approval  and
                  insurance pricing can unintentionally embed biases if models are not audited for
                  fairness.

                   Risk Area             Description                     Policy Response


                   Regulatory            Overlapping  or  outdated Coordination  bodies,  flexible
                   fragmentation         frameworks                      licensing, Bali Fintech Agenda

                   Data and consumer Fraud,  algorithmic  bias, Data  protection,  AI  audits,
                   risks                 privacy violations              consumer education

                                         Exclusion  due  to  lack  of Infrastructure              investment,
                   Digital divide
                                         devices, skills, or access      inclusive product design

                   Market                BigTech           dominance, Competition  laws,  supervisory
                   concentration         systemic risk                   oversight for large platforms


                   Environmental         Blockchain              energy Green        FinTech       incentives,
                   cost                  consumption                     energy-efficient protocols









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