The Central Bank of Kuwait (CBK), as part of its digital transformation strategy, plans to launch an advanced and improved digital portal for the banking sector. Additionally, CBK aims to test and evaluate a first-of-its kind product for Open Banking within the Regulatory Sandbox to enhance banking and financial services in the country.
The digital portal will speed up request processing between CBK and the banking sector to improve efficiency and quality of service offerings. The first phase of the project, which will be focused toward the banking sector, will provide a series of e-services targeted to minimize paper-based requests, a preset timeframe to completion, speed up the operational processes, and enhance decision-making capabilities. CBK plans to launch the digital portal gradually over the coming period. Going forward, CBK will continue its efforts in keeping pace with technical advancements, promoting digital transformation, and developing operational efficiency at both CBK and its regulated entities.
The Open Banking product operates within an open banking model and provides the users with analytical services for transactions processed on their bank accounts with different banks, along with e-payment services. CBK plans to fully assess and evaluate the product before the final launch in the market within the Regulatory Sandbox. CBK launched the Regulatory Sandbox in 2018 and updated it in 2019 to broaden the scope of accepted products and services. The Regulatory Sandbox is a safe space that allows for experimentation with innovative products and services related to Fintech without jeopardizing the stability of the financial and banking system. Moreover, to support and regulate the development of open banking, CBK formed the “CBK Open Banking Working Group,” which comprises CBK specialists and representatives of Kuwaiti banks, and highlighted the need for Open Banking Regulatory Framework and for Application Programming Interface (API) specifications.
Keywords: Middle East and Africa, Kuwait, Banking, Regtech, Open Banking, Fintech, Digital Transformation Strategy, Regulatory Sandbox, API, CBK
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