Abstract. This article analyzes transformation processes in the banking system of Uzbekistan and studies ways to improve it. As a research methodology, literature analysis, statistical data analysis and the study of the experience of foreign countries were used. The results show that such areas as the introduction of digital technologies, improving the quality of services, improving risk management are important in increasing the competitiveness of Uzbekistan's banks. The article concludes with a series of proposals aimed at improving the transformation of banks.