A historically strong banking system has been conservative in its approach to tech innovation, but that’s changing. Over the years, Kuwait’s central bank (CBK) has been dynamic in promoting sound regulation in tandem with renewed economic growth and low inflation. As a result, the nation’s lenders entered 2023 from a position of strength. According to the International Monetary Fund (IMF), the nation boasts “strong bank buffers, prudent oversight and proactive monitoring of financial risks by the CBK.” Also, its banking system “has weathered the recent shocks well.” But while Kuwaiti banks remain well-capitalized, liquid and among the country’s best performing companies, there is still room for improvement and growth. “Our population is relatively small, but we still have underserved segments like blue-collar workers [low income] or small and midsize enterprises [SMEs],” says Abdullah Al-Tuwaijri, CEO of Consumer, Private & Digital Banking at Bank Boubyan, a local Shariah-compliant lender. “There is also a large need for credit products like buy-now-pay-later, microcredit and SME credit.” The focus is on digitization. Kuwait is looking to leverage its historically strong banking sector to become a regional financial hub. When it comes to banking innovation, the country has not developed as fast as its […]
Kuwait’s Digital Transformation Journey
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