Kuwait's banking industry embraces digitalisation for enhanced efficiency and fintech advancement


(MENAFN- Fin mark communcations) Kuwait, October 2023: Oxford Business Group (OBG) is pleased to announce the release of a report on financial services in Kuwait. This dedicated content provides insights into the trends, opportunities and challenges in the financial services sector and the broader the economy, and serves as a preview to the forthcoming The Report: Kuwait 2023.

Kuwait's banking industry stands as one of the region's largest and most resilient. The sector has demonstrated adaptability, rebounding from the challenges posed by the global Covid-19 pandemic. The trajectory of Kuwait's banks has been marked by asset growth, with 2022 witnessing the highest credit growth since 2015. This resurgence has been aided by elevated oil prices, which has helped the nation improve its fiscal position.

In recent years, the sector has seen consolidation, as government-owned banks have merged to meet the demands of heightened local and global competition. Notable among these developments was the acquisition of Bahrain-based Ahli United Bank (AUB) by Kuwait Finance House (KFH), both of which have substantial government involvement in their shareholder structures.

Additionally, Kuwait's banking landscape is evolving with a significant emphasis on digitalisation. Banks are striving to reduce costs, enhance efficiencies, and offer more flexible services, fostering the growth of financial technology (fintech). This drive towards digital transformation is not only encouraged by the private sector but also supported by new regulations from the Central Bank of Kuwait (CBK).

Despite global uncertainties, Kuwait's banking system and broader financial services sector remains a cornerstone of the nation's economy, as well as a vital contributor to the regional and international financial network.

Jana Treeck, OBG’s managing director for the Middle East, expressed that the confluence of evolving regulatory support from the Central Bank of Kuwait and the drive of the private sector underscores Kuwait's position as a forward-looking player in the global financial arena, ready to seize opportunities and navigate future trends.

"Kuwait's banking sector is navigating a transformative journey, embracing digitalisation as a catalyst for enhanced efficiency and fostering fintech innovation. This strategic shift is not only a testament to the sector's adaptability but also its unwavering commitment to remaining at the forefront of the region's dynamic financial landscape. The remarkable growth we've witnessed serves as a powerful indicator of Kuwait's enduring strength, demonstrating its ability to not only weather global challenges but to thrive and innovate in response,” she added.

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Fin mark communcations

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