The Central Bank of Kuwait announced today that it start receiving applications for the establishment of new banks that provide their services completely digitally through a public banking license.
Al-Rai quoting the Director of the Office of Supervision Department at the Central Bank of Kuwait, Muhammad Al-Khamis, said that the deadline for receiving applications for establishing digital banks continues until June 30, and by the end of 2022 will announce the names of applicants that meet the conditions.
Al-Khamis in a video broadcast by the Central Bank of Kuwait on YouTube confirmed the bank has finished setting up a framework for digital banking “with the aim of stimulating innovation.”
He pointed out that this framework allows the provision of digital banking services according to three models of digital banking work, the first of which is digital services provided by existing banks through a banking unit within the bank.
The second model is “Banking as a Service”, a model based on a partnership between an existing bank and a digital institution that forms the front end in terms of customer relationship management and marketing activities, while the responsibilities of operations fall on the bank itself.
The third model is the fully independent digital banking model.