KUWAIT: Keen to enable new fintech and support open banking to help bring about innovative business models in the field of financial services, the Central Bank of Kuwait (CBK) has given the green light to test a first-of-its kind product within the regulatory sandbox. In a press statement, CBK Governor Basel Al-Haroon said the CBK spares no effort to support advanced fintech, adding that the new open banking product that has been initially launched in the market within the regulatory sandbox is the first of its kind in Kuwait.
The 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, he said. Haroon shed light on the importance of fintech to CBK, which can be defined as new technologies that relate to the financial industry and aim to improve financial activities, including the launch of advanced products, services and business models in the financial services industry.
To this end, the CBK launched the regulatory sandbox in 2018 and updated the same in 2019 to broaden the scope of accepted products and services, he said. 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, Haroon added.
On other CBK efforts to support and regulate open banking, the governor noted that CBK specialists had conducted a wide study, concluding that there is a need for open banking regulatory framework and for application programming interface (API) specifications. For this purpose, the CBK has formed an “Open Banking Working Group”, which includes specialists from Kuwaiti banks, and has also formed the “CBK Open Banking Working Group” which comprises of CBK specialists and representatives of Kuwaiti banks, Haroon noted.
In conclusion, the governor praised the cooperation of Kuwaiti banks in supporting the development of open banking, stressing the CBK’s role as a motivator and its keenness to deploy the latest technology to enhance banking and financial services in the country. – KUNA
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