INTELLIGENT VERTICAL: FINTECH
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CENTRAL BANK OF
KUWAIT OUTLINES
FINTECH INITIATIVES
T
he Central Bank of Kuwait has
announced that it is embarking on
a ‘long list’ of initiatives aiming to
revamp and upgrade the IT infrastructure of
the country’s financial systems. efficiency by executing all government
transactions online,” he said. “It replaces
a paper-based process with an online
automated cycle that is both immediate
and accurate.
Details of the initiatives were outlined in a
speech by HE Dr Mohammad Y Al-Hashel,
Governor, Central Bank of Kuwait at the
Global Informatics Forum, held at the Gulf
University for Science and Technology, State
of Kuwait. “This system is live today and is being rolled
out to all government bodies.”
One major initiative he spoke about was the
Kuwait National Payment System (KNPS), a
strategic mega project being developed with
local banks and payment gateways to be
rolled out in two phases in 2019 and 2020.
The system will cover various initiatives
including the Government Electronic Banking
System, Wages Protection System, Digital
Currency and Automated Clearing House.
To prepare for the potential of issuing digital
currency in the future, CBK says it will have
the tools ready to go live. In addition to
e-wallets, this includes a Digital Kuwaiti
Dinar, which will facilitate exchange against
tokenised assets.
And to encourage start-ups and
entrepreneurs further, the CBK has recently
announced the Regulatory Sandbox
Framework, which allows for experimentation
in innovative products and services, but with
a lighter regulatory touch that ensures the
safety and soundness of the financial and
banking sector without stifling innovation.
Each initiative, he said, is designed to
‘enhance the stability and efficiency’ of the
financial system and build the necessary
infrastructure to address future needs. He said: “With the advent of fintech,
technology is revolutionising the ways in
which we spend, save, invest and lend.
“For example, the Government Electronic
Banking System dramatically improves “We realise that we cannot slow
technological advance, nor would we want
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INTELLIGENTCIO
to. We welcome change and we choose to
steer technological innovation in the right
direction towards our objective of providing
inclusive sustainable prosperity.”
“In short, we believe that when regulators
work hand in hand with all stakeholders
to serve society, financial innovation can
be responsibly steered towards our aim of
promoting inclusive sustainable prosperity,”
he added. n
“
WITH THE ADVENT
OF FINTECH,
TECHNOLOGY IS
REVOLUTIONISING
THE WAYS IN
WHICH WE SPEND,
SAVE, INVEST
AND LEND.
www.intelligentcio.com