EVALUATING CLOUD AND DISTRIBUTED SYSTEMS ADOPTION IN SMART BANKING: EVIDENCE FROM UZBEKISTAN

Abstract

This research explores the influence of cloud and distributed systems on the profitability and efficiency of commercial banks in Uzbekistan from 2013 to 2024. On the combined sample of seven leading banks — Xalq Banki, Ipak Yuli Bank, Asaka Bank, Agrobank Invest Finance-Bank ‘Biznesni Rivojlantirish’, Anor bank, the paper describes a quantitative model to relate digital asset intensity (intangibles, right-of-use assets and IT-related investments) with return on assets (ROA). Endogeneity and persistence are accounted for by a dynamic panel estimation using the System GMM approach (Arellano- Bover/Blundell-Bond). [7,8]
The findings reveal that intangible assets and right of use (ROU) have a statistically significant positive effect on bank profitability, whereas fixed assets and investment negatively impact bank profitability. The model accounts for 85 % of ROA variation, and it is robust in dynamic GMM estimation. The results also illustrate that cloud-based and virtualized IT infrastructure exert a greater impact on sustainable profitability than traditional physical expansion.