The Central Bank of Kuwait has announced plans to begin testing innovative products for open banking under the CBK’s Regulatory Sandbox.
The products which will be launched in the local market according to the CBK will be made available to volunteer customers willing to fully assess and evaluate the product before its launch.
Speaking in this regard, the CBK Governor, Basel Al-Haroon, described the trials as part of efforts by the CBK to strengthen fintech advancement in the country.
Al-Haroon said that the new open banking product will provide users with analytical services for transactions processed on their bank accounts with different banks, along with e-payment services.
Al-Haroon said that the CBK intends to improve its financial activities including the launch of advanced products, services, and business models in the financial services industry.
The Governor of the CBK stated that the Apex bank observed, from a variety of studies it series out, the need for an open banking Regulatory Framework and Application Programming Interface (API) specifications.
In line with this, the CBK Governor noted that an “open banking Working Group,” and a “CBK open banking Working Group” was inaugurated.
These groups are made up of CBK specialists and representatives of Kuwaiti banks.
The Governor commended the cooperation of Kuwaiti banks in supporting the development of open banking.
He said that the CBK’s role as a motivator and its keenness to deploy the latest technology to enhance banking and financial services in the country.
In 2018, the CBK launched the Regulatory Sandbox, which targets the strengthening of services in the country’s financial services industry.
This sandbox, which was updated in 2019 currently works towards providing stability while testing innovations in the financial services industry.