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Kuwait’s digital spending up 78% to KD 9.25 billion dinars in Q1 2024

The surge in banking operations conducted via websites indicates user demand and emphasizes the rapid transformation strategy in the banking sector.

  • Domestic website portals in Kuwait accounted for the largest share of total operations, with KD 4.763 billion dinars spent through digital sites in in the first quarter of this year.

  • KD 4.494 billion dinars were spent through various points of sale at home, marking a rise of KD 175 million dinars during the first quarter of the current year.

  • At the level of foreign operations, spending through websites abroad witnessed an increase to about KD 326.6 million dinars for Q1 2024, marking a growth rate of 22.2 percent.

Aligned with the sweeping changes in the banking sector, characterized by digitalization of services and embracing the latest technological and artificial intelligence advancements, banking operations conducted through websites in the first quarter of this year experienced substantial growth. This growth mirrors user demand and underscores the accelerated transformation strategy.

The total digital spending across website operations and internal points of sale reached 78 percent, totaling KD 9.257 billion dinars out of the overall total of KD 11.880 billion dinars.

Domestic website portals accounted for the largest share of total operations, with KD 4.763 billion dinars spent through digital sites. This marked an increase of KD 608 million dinars compared to the first quarter of last year, when total operations amounted to KD 4.155 billion dinars, resulting in a growth rate of 14.6 percent.

In the same context, KD 4.494 billion dinars were spent through various points of sale at home, marking an increase of KD 175 million dinars during the first quarter of the current year. This reflects a growth rate of four percent over the same corresponding period last year, which recorded KD 4.319 billion dinars.

In contrast to digital transactions, ‘cash’ withdrawals through bank devices continued to decline. They recorded a decrease of 4.6 percent in the first quarter, amounting to KD 124 million dinars. The total for that period reached KD 2.621 billion dinars, compared to KD 2.745 billion dinars for the corresponding period of last year in 2023.

At the level of foreign operations, spending through websites abroad witnessed an increase to about KD 326.6 million dinars for the first quarter of this year, marking a growth rate of 22.2 percent compared to the total expenditures for the same period last year, which were KD 267.1 million dinars.

On the other hand, cash withdrawals from abroad decreased by 18.6 percent. The value of withdrawals made abroad recorded KD 61.6 million dinars for the first quarter of this year, compared to KD 75.7 million dinars for the corresponding quarter of last year.

Points of sale abroad also saw a decline from users of Kuwaiti bank cards, as these operations decreased by 2.2 percent in the first quarter of the current year, reaching KD 294.9 million dinars compared to KD 301.3 million dinars for the corresponding period of last year, 2023.

With high levels of security in digital services, the flexibility and ease of conducting business, diverse services, and low levels of risk, electronic payment operations are experiencing continuous and significant growth, while cash withdrawals are declining.

There is also a multitude of e-commerce companies licensed by the Central Bank of Kuwait and subject to close supervision. These operate based on advanced business models that have provided numerous service channels for consumers. This shift has transitioned demand from the traditional use of bank cards to relying on digital services, which enable consumers to optimally manage bank accounts with great flexibility.



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