Cybersecurity Risks in the Context of Digitalization of the Banking Sector of the Republic of Uzbekistan

The paper examines the cybersecurity threats of the digitalization of the banking industry in the Republic of Uzbekistan. While increasingly adopting digital technologies to improve operational efficiency and service delivery, banks are also becoming more susceptible to cyberattacks. The study employs a linear regression model to analyze the correlation between digitalization, investments in cybersecurity, and the frequency of cyberattacks for the Uzbek banking sector. The results reveal that presumptions about the nonlinear growth of cyber incidents as the result of digitalization in firms, rather than being linear, are heavily dependent upon the nature of investments in cybersecurity undertaken by those firms. Furthermore, it emphasizes the role of human capital, notably the qualification of the IT personnel, to reduce the cybersecurity risk. This study sheds light on the challenges faced by policymakers and financial institutions in Uzbekistan as they address issues related to digital finance and cybersecurity.