The Central Asian Banking Playbook: From Manual Remittances to Green Finance in One Generation

Najib Vatanshoev, Chief of the Retail Department of a large bank, knows how the financial sector can deal with global crises through the development of integrated products to improve the economy. 

In September, the World Meteorological Organization published a forecast: the La Niña phenomenon, a complex weather phenomenon that occurs every few years due to fluctuations in ocean temperature in the equatorial Pacific Ocean, will return this fall and affect agriculture, energy, and financial markets worldwide. It highlighted a challenge Central Asian banks know intimately: how to maintain economic stability when your economy depends on both climate-vulnerable farming and remittances from migrant workers.

In Tajikistan, where these dual vulnerabilities define the economic landscape, one retail banking executive has spent years building solutions that work. Najib Vatanshoev, Director of Retail Business at the Investment and Credit Bank of Tajikistan, did not wait for the crisis to hit. Working with the EBRD, he implemented the Green Economy Financing Facility (GEFF) to help farmers adapt to climate volatility through drip irrigation and greenhouse modernization. Simultaneously, he revolutionized the country’s remittance system with the Oson card, eliminating the need for recipients to queue at banks with transfer codes.

The result is a banking model that addresses both sides of Central Asia’s economic equation: protecting agricultural lenders from climate shocks while streamlining the remittance flows that constitute up to 30% of GDP in countries like Tajikistan. As global instability intensifies, Vatanshoev’s integrated approach offers lessons for financial institutions operating in similarly vulnerable economies.

Financial initiatives in climate change 

The climate risks associated with the return of La Niña will primarily affect countries where agriculture plays a significant role in the economy. For Central Asia, for instance, this threat is so real, as droughts and sudden weather changes can immediately impact the income of farmers and small businesses. If farmers face crop failures due to climate change, the financial sector has a responsibility to provide products that help them survive. In these circumstances, the sustainability of the economy depends on banks’ ability to offer products that take the climate into account.

The programs of the European Bank for Reconstruction and Development, implemented by the Investment and Credit Bank under the leadership of Najib Vatanshoev, aimed to reduce the vulnerability of businesses and households. One such program, the GEFF (Green Economy Financing Facility), made it possible for businesses to access loans for projects related to energy conservation and the introduction of sustainable technologies in agriculture and construction. These initiatives went beyond simply providing loans. The bank also engaged consultants to help entrepreneurs calculate risks and select the most effective solutions for their projects. For example, it was discussed that drip irrigation systems, greenhouse modernization, and energy-efficient technologies for food processing and storage are needed.

“The climatic conditions in the region have noticeably changed and entrepreneurs need a more transparent support system. They need not only financial assistance, but also simple, understandable tools to cope with instability and seasonal risks, and we tried to find a solution,” Vatanshoev commented.

Therefore, green products have not become a standalone credit line; rather, they have become part of an integrated system in which the bank has assisted with adaptation to new circumstances. This is the reason why their influence extends beyond the confines of a single industry: the modernization of agriculture has lessened dependence on climatic fluctuations, while energy-efficient urban technologies have contributed to the overall stability of the economy.

Support provided to economically small groups  

However, vulnerable groups besides farm owners and workers include also young entrepreneurs and women. In Central Asia, these groups often face barriers to obtaining financing, such as a lack of collateral, credit history, and limited access to consultation and markets. Youth in Tajikistan remains an important but still underutilized resource for the economy. A significant part of it belongs to the so-called NEET group – those who do not work, study or undergo professional training. The potential of young people in business and innovation has not yet been fully revealed, and that is why support programs are becoming a key tool for involving a new generation in entrepreneurship. Therefore, in addition to its green initiatives, the bank where Vatanshoev works has launched two equally important projects.

For young people who want to start their own business, the lack of start-up capital and paucity of knowledge in the field of management often becomes a serious barrier. To overcome these challenges, special programs have been introduced in the region. In this way, initiatives for entrepreneurs under the age of 35 help young people find sources of financing for their own projects and master the basics of financial literacy. This allows farmers to invest in machinery that can reduce their dependence on climate risks, and representatives of the service or manufacturing sector can enter the market without excessive costs.

For women, especially in rural areas, traditional restrictions and low representation in the business community create additional obstacles.  Access not only to loans, but to mentoring support, management advice, and adaptation of business plans to market conditions is becoming an important resource. As a result, we are not talking about providing individual banking products, but about creating an environment where vulnerable groups have the opportunity to conduct business on equal terms.

“Constantly  crises form that need to be addressed. It was important for us to support not only the agricultural sector, because there are other groups of the population in need of support. The implemented initiatives help to more or less stabilize the market,” Najib Vatanshoev shared.

Banking products can be both a lending tool and a factor of sustainable development. Agricultural projects, as well as initiatives for women and youth in business, have helped those who have traditionally been on the periphery of the financial system gain access to resources and knowledge. At a time when forecasts are again calling into question the stability of agriculture and small businesses, such programs are becoming not just support for individual entrepreneurs, but part of a broad strategy to adapt the economy to global challenges.

A new way to automate banking transactions  

The development of digital solutions that make financial services more accessible and convenient for millions of people has become an equally important area. One of these steps was the Oson project.

For many years, Tajik citizens who received financial assistance in the form of money transfers from abroad had to regularly visit banks. The Oson card has changed this process, making it easier for citizens to receive money transfers from other countries. Previously, citizens had to stand in long queues, present their passports, and enter a unique code for each transfer.

“These actions were required every time people visited the bank, which was inconvenient and time-consuming. At that time, banks in Tajikistan were just starting to introduce debit cards that were serviced by a national processing center. As an operations manager, I analyzed the processes of money transfers and interacted with clients. I came up with an idea to simplify the process of receiving transfers by transferring funds directly to a client’s bank card,” Najib Vatanshoev commented.

The idea was for the client to receive the card once and link it to the account. All future transactions would be automatically credited to this card, eliminating the need to visit the bank. This product allowed customers to access their funds through ATMs or make payments using bank transfers. For a country with a large number of migrant workers, this was a significant step towards financial inclusion and digitalization. Funds are now available 24/7, and customers no longer need to remember or enter transfer codes. This solution has greatly improved the convenience, security, and efficiency of transferring funds.

The success of this product was made possible by Vatanshoev’s managerial experience and by his systematic professional training. His international certifications have formed a fundamental understanding of financial processes and risks. CAP/CCA (Certified Accounting Professional) is an international certification program for accountants and financiers. It confirms that the specialist knows international financial reporting standards, is able to analyze and plan the activities of companies, and manage risks. Najib also got special courses for credit specialists – GIZ/AMFOT. The program, supported by the German agency GIZ, is aimed at training loan specialists. This combination of theory and practice allowed Najib to offer a solution that became an industry standard and strengthened clients’ financial stability in the face of global instability.

The specialist considers it his duty to transfer the accumulated knowledge. Najib was a member of the jury of the international Successful Ladies Awards. He evaluated the nomination “The best head in the banking sector” according to all criteria: innovation, leadership and influence, achievements and results, public engagement and social responsibility. This international award is held annually, and more than 3,000 people from around the world take part in it. In addition, Vatanshoev was a judge and, as part of his work, participated in the Committee for the Selection of Branch Directors and their Deputies at ICB Bank. He conducted interviews with candidates who applied for the position of branch directors or managers.

Vatanshoev’s initiative aligns with a global movement towards simplifying cross-border transactions and enhancing digital services. It is also directly linked to the sustainability of the economy, as automating transfers reduces the strain on banking infrastructure, speeds up money circulation, and creates new opportunities for financial inclusion, particularly during times of crisis or climate disruption, when access to funds becomes critically important. Economic support is provided at various levels, and banks are actively exploring and implementing more technological solutions to drive innovation and create new trends in the banking sector.

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