Kuwait opens door to banking revolution as CBK issues final open banking framework
. . . allowing customers to manage multiple bank accounts in one place and give customers greater control over their finances
• The move forms part of its wider strategy to develop Kuwait’s financial technology sector and establish regulations that accommodate modern banking business models, while ensuring the protection of customer information and the security of financial transactions.
The Central Bank of Kuwait (CBK) has issued the final regulatory framework for open banking, paving the way for banks and licensed financial technology companies to introduce new digital services, improve customer experience and make banking transactions easier and more efficient.
The framework is part of the CBK’s efforts to modernize Kuwait’s banking sector, support digital transformation and bring local financial services in line with international developments in financial technology.
In a statement, the Central Bank said the final framework was issued after reviewing comments and suggestions received on the draft regulations presented in June 2025. The review reflected its commitment to transparency and consultation with the relevant parties.
The new framework sets out the regulatory requirements, security measures, technical standards and operational rules governing open banking activities. It also provides the infrastructure needed to support the safe and effective introduction of these services in Kuwait.
Under the open banking system, local banks will be able to share customers’ financial information securely with account information service providers and payment initiation service providers licensed by the CBK. However, such sharing will only take place with the customer’s explicit consent.
The system is expected to give customers a more complete picture of their finances by allowing them to view information from accounts held at different local banks in one place. It will also help them monitor their spending, manage their savings and prepare better financial plans.
Other services will include easier loan applications, the processing of letters of guarantee and the ability to initiate payments directly from bank accounts. Customers will also be able to view and compare banking products and services, helping them select options that best meet their needs.
The Central Bank said the framework would strengthen cooperation between local banks and financial technology companies, encouraging innovation and expanding the range of digital financial services available to customers.
It is also expected to improve the speed and efficiency of financial transactions while giving customers greater control over how their banking information is used.
The CBK said the move forms part of its wider strategy to develop Kuwait’s financial technology sector and establish regulations that accommodate modern banking business models, while ensuring the protection of customer information and the security of financial transactions.
